The French telecommunications company Orange has intentions to exit the retail banking business in Spain and France.

The company that launched Orange Bank in 2017 is currently negotiating with BNP Paribas to ensure that this financial institution provides support to the clients of the lender founded six years ago, during the withdrawal of a representative of the telecommunications sector from the banking business. The relevant information is contained in the Orange press release, which was published last Wednesday, June 28.

Orange Group CEO Christel Heydemann expressed gratitude to the teams whose dedication and hard work have turned Orange Bank into a financial institution that has a customer base of more than 2 million people and has one of the best applications on the market. She also stated that the evolution of the banking business encourages the decision to take the lender to a new level, but did not specify the content of the new form of existence.

In October 2022, the media reported that Orange was studying various strategies for the development of its online banking division. Then the representative of the company said that in the face of fierce competition in the banking market, the firm is considering all options for the continued existence of the lender and support for its growth.

The telecommunications firm launched Orange Bank, having set a goal of obtaining a 25 percent share of its presence in the French online banking market. This is the right strategy from the point of view of compliance with advanced trends, as more and more consumers use smartphones as tools for financial operations. Experts say that those banks that ignore this circumstance will find themselves in the position of an outsider.

Orange Group, according to a press release, after leaving the retail banking market, will cooperate with authorities and regulators, consult with various organizations and ensure the initial content of products and services that are provided to customers.

BNP Paribas is a long-standing partner of Orange Group and Orange Bank. The chief operating officer of this financial institution, Thierry Laborde, said that the lender will provide a continuity solution to the customers of the telecommunications company’s bank. He said that consumers will be provided with comprehensive support both in everyday digital banking with Hello Bank and in consumer credit with BNP Paribas Personal Finance insurance. According to him, the bank’s clients will receive high-performance services.

As we have reported earlier, BNP Paribas Invests in Fintech.