BNP Paribas and Orange are in exclusive discussions about acquiring the customer base of Orange Bank, a digital banking division managed by the telecoms operator.
Pending regulatory approval, the potential agreement would result in BNP Paribas assuming responsibility for around 800,000 Orange Bank customers in France. These customers would be transferred to BNP Paribas’s Hello bank! brand.
Since its establishment in 2017, Orange Bank has encountered profitability challenges due to intense competition from digital banks such as Revolut and N26, which have impacted its performance.
Recognizing the need to bolster its digital banking services, Paribas, France’s largest bank, seeks to expand its offerings and enhance its competitiveness within the market.
The agreement between Orange and BNP Paribas is expected to involve a financial payment to Orange. BNP Paribas might also take on certain liabilities of Orange Bank, such as customer deposits.
The deal is expected to be completed soon, pending necessary approvals and processes.
As part of the agreement, BNP Paribas will acquire approximately 800,000 Orange Bank customers in France and move them to its Hello bank! brand. The deal is still awaiting regulatory approval, and the specific terms have not been disclosed. The transaction is projected to be finalized in the next few months.
This agreement is of great importance in the French digital banking market as it has the potential to reshape the competition and potentially lead to further industry consolidation.
