Orange acquires 65% stake in Groupama Banque

By:
Jason McGee-Abe
Published on:

Orange becomes majority shareholder of Groupama Banque, soon to be renamed Orange Bank, after attaining approval from French and European regulatory and prudential authorities

Marc Rennard, Orange

Groupama Banque, which will be renamed Orange Bank from January 2017, is set to launch its first digital bank and mobile banking services in early 2017 and André Coisne has been tasked with leading the development of Orange Bank and has been appointed chief executive officer of the bank.

Orange Bank is part of the Orange Group’s Customer Experience and Mobile Banking function, which is led by Marc Rennard, deputy chief executive officer. In an interview with GTB's Alan Burkitt-Gray in August, Rennard said: "We thought it was preferable to buy an existing bank rather than to launch from scratch because it would have taken one or two years to manage that."

“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,” commented Stéphane Richard, Chairman and CEO of Orange.

“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 personalisation.”

Customers will be able to subscribe directly through the mobile app, via the website or in one of Orange’s 140 accredited stores. The offer will marketed in France in H1 2017 and will also be distributed across Groupama Group’s networks from H2 2017. The offer, specifically designed for mobile users, will include current accounts, savings accounts, credit and payments from launch.

Thierry Martel, CEO of Groupama, added: “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. 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. I am very happy that Groupama is joining forces with Orange to build the bank of the future.” 

Ultimately, Orange Bank seeks to attract more than 2 million customers in France.GTB