To strengthen the development of Orange Bank, Orange is continuing to invest 230 million euro to increase in capital that 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 Spain, 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.
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.
Paul de Leusse, Chief Executive Officer of Orange Bank
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.
Thierry Martel, Chief Executive Officer of Groupama
We wish Orange Bank every success with its new strategic development plan. 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.
