Communiqué: Four years after its launch, Orange continues to develop Orange Bank
01 Outubro 2021 - 3:11AM
Communiqué: Four years after its launch, Orange continues to
develop Orange Bank
Press releaseParis, 1st October 2021
Four years after its launch, Orange continues to develop
Orange Bank
To strengthen the development of Orange Bank, Orange is
continuing to invest in its bank. A 230 million euro increase in
capital will speed up the growth projects envisaged in the bank's
strategic plan. The Group has also reached an agreement with its
historic partner, Groupama, to buy its 21.7% stake while
maintaining the excellent commercial relationship.
With 1.6 million customers in France and Spain1, Orange Bank is
now one of the top five neobanks in France after just four years of
existence. This success continues to build with over 40,000 new
customers every month and over 1 billion euros in loans to be
extended by the end of the year. What’s more, while the majority of
neobanks have continued to deploy a free-to-use model, over 90% of
new Orange Bank customers subscribe to a billed service.
These figures also reflect the success of the strategy for
convergence between telecoms and financial services, which has been
pursued from the initial launch of the bank. For example, in
France, the average spending per customer who has also subscribed
to an Orange Bank payment facility has doubled. In addition, thanks
to the Group's distribution network, for every 100 sales linked to
mobile telephony, 35 banking sales are made. In Spain, the
attrition rate of Orange customers who have subscribed to the
Orange Bank offer has halved.
Finally, in financial terms, Orange Bank should significantly
reduce its losses in 2021 thanks to an increase in NBI (Net Banking
Income), up 57% in H1 2021 compared with H1 2020, and decreased
management costs owing to investments in the bank's processes over
the past three years. As such, the management costs per customer
have gone down by 35% since 2018. This trajectory - which includes
substantial investments to create a new, modern, digital bank in
line with Orange customers' expectations - was planned from the
outset. The rate at which the bank is moving towards breakeven is
comparable, or faster, than that of its peers in the neobanking
industry.
Building on this success, Orange has decided to accelerate the
development of Orange Bank. To do so, the bank will continue to
invest in its platform to maintain its technological edge. New
activities will be developed in partnership with the best fintechs:
after acquiring Anytime to address the Professional/SME sector and
signing a strategic partnership with Younited for credit, a tender
process is in progress for new insurance offers.
The closing of this transaction is subject to the usual
approvals. The value of the deal remains confidential. Groupama
will however remain a major commercial partner having extended the
exclusivity granted to Orange Bank for everyday banking and
consumer credit until 2028.
Paul de Leusse, Chief Executive Officer of Orange Bank said "We
would like to thank Groupama for its commitment to Orange Bank's
success. We are now speeding up our industrial and geographic
development strategy for a bank that is inherently designed to be
accessible to everyone and used over the mobile phone. This new
ambitious phase, which reflects the Orange Group's fundamental
values, will give rise to a new advertising slogan that will be
revealed on Sunday on TV and digital channels.”
"We wish Orange Bank every success with its new strategic
development plan," said Thierry Martel, Chief Executive Officer of
Groupama. "We appreciate the partnership we have built over the
years with Orange Bank and are determined to continue to work
together in the years to come.”
About OrangeOrange is one of the world’s leading
telecommunications carriers with a turnover of €42.3 billion in
2020 and 139,000 employees as at June 30, 2021, of whom 80,000 are
in France. The Group has a total customer base of 263 million
customers worldwide at Wednesday, June 30, 2021, including 218
million mobile customers and 22 million fixed broadband customers.
The Group is present in 26 countries. Orange is also a leading
provider of global IT and telecommunication services to
multinational companies, under the brand Orange Business Services.
In December 2019, the Group presented its new ‘Engage 2025’
strategic plan, which, guided by social and environmental
accountability, aims to reinvent its operator model. While
accelerating in growth areas and placing data and AI at the heart
of its innovation model, the Group will be an attractive and
responsible employer, adapted to emerging professions.
Orange is listed on Euronext Paris (symbol ORA) and on the New
York Stock Exchange (symbol ORAN).For more information on the
internet and on your mobile: www.orange.com,
www.orange-business.com or to follow us on Twitter:
@orangegrouppr.Orange and any other Orange product or service names
included in this material are trademarks of Orange or Orange Brand
Services Limited.
Press contactsTom Wright, 06 78 91 35 11,
tom.wright@orange.comSylvain Bruno, 06 86 17 88 89,
sylvain.bruno@orange.com Emmanuel Gauthier, 06 76 74 14 54,
emmanuel2.gauthier@orange.com
1 Made up of 800k banking customers and 800k insurance
customers.
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