Orange puts an end to its banking adventure: it is already negotiating with BNP Paribas the sale of Orange Bank

It was in November 2019 when Orange Bank officially landed in Spain, the second country in which the service was launched after france. He did it with a 100% mobile proposal, based on the cloud and with biometrics as a security system.

Orange’s objective with its bank was to reach one million customers in ten years and reach profitability in less than five years. But not even four years have passed and the teleco has already communicated its intention to withdraw from the retail banking market.

Orange has opened a period of exclusive negotiations with BNP
Paribas to sell you your Orange Bank business in both France and Spain. Of course, they guarantee that, while the process lasts, “all Orange Bank services will remain unchanged.”

Orange withdraws from retail banking with 2 million customers

As part of its strategy to explore new businesses, Orange launched Orange Bank in France at the end of 2017 and did the same in Spain two years later. In our country, closed the first year of life with 60,000 customers, a figure that rose to 135,000 the next year. Last December, in addition, it opened its contracting to clients of other operators.

Currently serving more than two million users between the two countries, but several months ago, the telco decided to carry out a strategic review of its banking business and began the search for a partner to support the development of its banking subsidiary.

According to Christel Heydemann, CEO of the Orange Group, “the evolution of the banking market now leads us to guide the bank into a new phase.” And in this new phase, the Group has announced the opening of exclusive negotiations with BNP Paribas as part of Orange’s strategy to progressively withdraw Orange Bank from the retail banking market in France and Spain.

These negotiations will define the terms of the association in relation to Orange Bank’s client portfolio in France, the acquisition of Orange Bank business in Spain and the development of Terminal financing solutions.

The teleco company has said that the information and consultation procedures will begin shortly with the workers’ representative bodies, to which it has promised full transparency. It has also pledged to work “closely” with all relevant authorities and regulators.

In addition, it has ensured that, throughout the process, there will be no changes to servicesin existing loans or in day-to-day operations for clients, “including taking deposits and making loans.”

The full range of information on Orange Bank’s products and services will continue to be available at orangebank.es. From BNP Paribas, they have expressed their intentions to “provide a complete continuity solution to Orange Bank customers […]be it daily digital banking with Hello Bank, consumer credit with BNP Paribas Personal Finance or insurance.

Images | Orange

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