Orange and Groupama have signed an agreement that aims to enable the development of an innovative, 100% mobile banking service.
Orange to acquire a 65% stake in Groupama Banque, which will become Orange Bank
This agreement concludes the exclusive discussions that have been ongoing between the two Groups since January and paves the way for the acquisition by Orange of a 65% stake in Groupama Banque. Groupama will retain the remaining 35%.
Thanks to the resources of the two partners, the bank, for which the legal entity should become Orange Bank, will launch a banking service specifically designed for mobile usage in France at the beginning of 2017. This service will be marketed under the Orange brand within Orange’s own distribution network and under the Groupama brand within Groupama’s distribution networks.
Through Orange Bank, Orange and Groupama will offer all essential banking services over a platform that provides customers with a unique digital experience on their mobile phones. The services proposed will cover current accounts, savings, loans and insurance services, as well as payment. The combined ambition for the two groups is to attract over two million customers in France.
Stéphane Richard, Chairman and Chief Executive Officer of Orange, said: “This agreement is a major step forward in our ambition to diversify into mobile financial services as we outlined in our Essentials2020 strategy. Groupama Banque will bring an existing banking structure as well as considerable experience in managing customer relations remotely within a banking context. This will enable us to move forward rapidly in order to provide our customers with an innovative, 100% mobile banking service, first in France and then in Spain and Belgium. By leveraging the power of its brand, its distribution network and its extensive experience in digital services, Orange aims to bring mobile banking into a new dimension.”
Thierry Martel, CEO of Groupama, said: “This partnership represents an important step for Groupama. It will enable us to leverage Orange’s technical know-how and its expertise in digital services to accelerate our existing online banking activity. Through this partnership, we are effectively combining two powerful and complimentary brands in order to offer our customers a disruptive banking service. We are aiming to put the highstreet bank into our customers’ pockets, turning tomorrow’s bank into today’s reality.”
The completion of this transaction, which is expected during the third quarter of 2016, is subject to the approval of the relevant controlling authorities.