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.