French telecom operator Orange has agreed to purchase a majority stake in France’s Groupama Banque to launch its mobile banking service.
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Under the terms of the deal, Orange will acquire a 65% stake in Groupama Banque that will become Orange Bank. The remaining stake will be held by Groupama.
The new mobile bank, expected to be launched in France in early 2017, will offer current accounts, savings, loans and insurance services, and payment.
Orange chairman and CEO Stéphane Richard said: "Groupama Banque will bring an existing banking structure as well as considerable experience in managing customer relations remotely within a banking context.
"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."
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By GlobalDataThe deal, which is yet to receive the nod of the controlling authorities, is scheduled to close during the third quarter of 2016.
Groupama CEO Thierry Martel added: "Through this partnership, we are effectively combining two powerful and complimentary brands in order to offer our customers a disruptive banking service. We are aiming to put the highstreet bank into our customers’ pockets, turning tomorrow’s bank into today’s reality."
