Orange acquistion of 65% stake in Groupama Banque

Overview:

• French telecommunications company Orange has entered into an agreement to acquire a 65% in  Groupama Banque, which will thereafter become Orange Bank and focus entirely on an innovative mobile banking service.
• Groupama will hold on to the remaining 35% of the company once the deal is closed later in 2016. 
• The acquisition, for an undisclosed fee, is a real statement of intent from Orange as they try to force themselves into the banking sector, or more specifically the mobile banking sector.
• The company is said to be looking to expand in a similar way in Spain and Belgium if the venture is successful. A benchmark of 2 million customers has been set. 
• The new mobile banking service will offer current accounts, savings, loans and insurance services, as well as payment.

John Crabb - Journalist