Groupama will retain the remaining 35% of the bank which will be renamed Orange Bank. The bank is expected to launch mobile banking services in France at the start of 2017.
Stephane Richard, chairman and CEO of Orange, said the agreement is a “major step forward” in its ambition to bolster its position in mobile financial services.
“Groupama Banque will bring an existing banking structure as well as considerable experience in managing customer relations remotely within a banking context,” said Richard.
“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.”
Through the deal, the services proposed will cover current accounts, savings, loans and insurance services, as well as payment.
Subject to regulatory approvals, the deal is expected to be completed during the third quarter.
