Telecommunications firm Orange has entered exclusive negotiations with BNP Paribas for the takeover of its retail banking business.
As part of a strategic review launched several months ago, Orange has agreed to a deal to transfer its two million retail banking accounts to BNP Paribas and to work together to develop finance solutions for mobile devices. The two groups will also discuss the terms of a takeover of Orange Bank's business in Spain.
The agreement is part of Orange’s wider intention to progressively withdraw Orange Bank from the retail banking market in France and Spain. The telco says there will be no change in services or day-to-day operations for customers during the negotiations, including the taking of deposits and the granting of loans.
Christel Heydemann, Orange Group CEO comments: "The evolution of the banking market now leads us to guide the bank into a new phase. Our priority will be to provide exemplary support for all our employees and customers. This process will be carried out in complete transparency, within the framework of our dialogue with our staff representative bodies."
Orange Bank was first launched in France in 2017 offering a package of traditional retail financial services including cards, savings accounts, personal loans, and insurance accessible via its mobile app. The business further extended its reach in 2019 when its embarked on a Spanish launch.
Financial terms have not been disclosed.