The French telco acquired a controlling stake in Groupama Banque
French telecom group Orange announced an agreement to acquire a 65% stake in compatriot financial institution Groupama Banque and launch a mobile-only banking service.
Under the terms of the agreement, the new legal entity should become Orange Bank, which will launch mobile-only banking services in the French market at the beginning of 2017. Groupama will retain a 35% stake.
The two companies entered into exclusive discussions to negotiate the deal in January this year.
The mobile banking 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 aim to provide essential banking services including current accounts, savings, loans and insurance services, as well as payment. The companies said the goal is to attract two million customers in France.
In the future, Orange and Groupama expect to launch mobile banking services in additional markets including Belgium and Spain.
“This agreement is a major step forward in our ambition to diversify into mobile financial services as we outlined in our Essentials2020 strategy,” Orange Group’s Chairman and CEO Stéphane Richard said. “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”.
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.
Orange said that the transaction, which still requires regulatory approvals, is expected to be fully completed in the third quarter of 2016.
Orange has a presence in 28 countries. The telco ended 2015 with a total of 263 million customers, including 201 million mobile customers and 18 million fixed broadband customers.
America Movil considering sale of stake in KPN
In other EMEA news, Mexican telecoms giant America Movil is considering the sale of its 21.1% stake in Dutch telecoms group KPN, according to a Bloomberg report.
The report states the Mexican firm did not yet make a decision on the timing or structure of the sale. The report names French telecoms group Orange and German telco Deutsche Telekom (DT) as potential buyers for the stake.
In 2013, America Movil failed in an attempt to gain control of the Dutch operator.
