The telephone operator Orange has just obtained all the administrative authorizations to launch a bank under its own brand. To begin with, Orange acquired a 65% stake in Groupama Banque. It is this online bank that will be fully digitalized and transformed in the colors of Orange. From its launch in the first half of 2017, this will make it possible to offer an almost complete banking service: current account, bank cards, traditional savings and consumer credit. On all of these services, Orange has planned aggressive pricing to attack the market.
The only thing missing will be mortgage loans to complete the banking offer: it is planned, but not at the start.
Internet and "agencies"
While the offer will be developed primarily on the internet, Orange is counting on its stores to relay the banking offer. 140 selected stores (out of the Brand's 850) will be able to offer to open an account and answer questions.
On the one hand, this could be a serious advantage over “pure” online banks. But on the other hand, are customers willing to give banking and private information to their phone operator?
Ultra fast development?
Side ambitions, Orange believes very strongly, since the group expects to open 400,000 accounts in the first year and 2 million before 2024. It is much faster and much stronger than all the online banks launched so far. It is therefore both very ambitious and also completely against the market because new customers are more and more difficult to attract (see the rather laborious development of Hello bank! In France).
CEO Stéphane Richard declared that Orange wanted to be “the bank's Free”… And since June 2000 Iliad (and its subsidiary Free) has registered the FreeBank brand. He also renewed this deposit in 2010. Will Free launch into the race or is this project aborted? Compare Banks Online Open an account with Hello Bank