Orange will launch banking services in France in 2017 through Groupama acquisition
French telecommunications operator Orange confirmed it has received regulatory approval in France and Europe to acquire 65% of the capital of compatriot financial institution Groupama Banque, which will be renamed Orange Bank in January.
The companies reached an initial agreement in April this year. Groupama will own 35% of the new entity, which will launch mobile-only banking services in the French market during the first half of 2017.
The French telco said that customers will be able to subscribe directly through the mobile app, via the website or in one of Orange’s 140 accredited stores. Through the new entity, Orange and Groupama aim to provide essential banking services including current accounts, savings, loans and insurance services, as well as payments. The companies said the goal is to attract 2 million customers in France.
“The acquisition of a majority interest in Groupama Banque allows the group to pursue its strategy of diversification in mobile financial services through the creation of Orange Bank,” Orange’s Chairman and CEO Stéphane Richard said. “This partnership with Groupama is an important step forward that will lead to the development of an innovative, 100% mobile offer that meets new customer expectations for simplicity, transparency and personalization.”
“Orange’s entry into Groupama Banque’s capital is an important part of Groupama’s ongoing strategy to offer broad-ranging and innovative financial services,” Groupama’s CEO Thierry Martel said. “With the launch of Orange Bank, Orange and Groupama will work together to develop a new and disruptive model for banking services that will offer an unprecedented customer experience.”
Orange has a presence in 29 countries; it ended the first half of 2016 with a total of 250 million customers, including 189 million mobile customers and 18 million fixed-broadband customers.
Groupama Banque offers a portfolio of banking products and services to individuals, professionals and companies. At the end of last year, Groupama Banque had more than 530,000 customers.
