BARCELONA, March 1 French telecoms operator
Orange's new online banking service will match French
rivals' offers, which usually include cash and free-of-charge
credit cards, an executive said on Wednesday.
Along with expansion in Africa and the Middle East, France's
number one telecoms operator sees its new banking services as a
key driver for growth, hoping to lure some of its 29 million
mobile customers in its home country.
"We'll match the market, with a very competitive offer,"
said Marc Rennard, the head of Orange's financial services, in
an interview at the Mobile World Congress in Barcelona, without
giving specific details.
Orange Bank was formed after the acquisition of a 65 percent
stake in Groupama Banque last year. It is scheduled to formally
launch in the next few weeks, Orange said.
With a set target of 2 million banking clients in France
over 10 years, the telecoms operator said its offer would be
cheaper and more transparent in terms of fee policy than those
of its bigger competitors in the field, Societe Generale
and BNP Paribas.
"We'll offer loans, but quite frankly, we'll focus more on
credit loans than on mortgages, as we need to be very cautious
with long-term commitments, given the current evolution of
interest rates," he said.
Orange already has a phone-based payment system, Orange
Money, which is heavily used in several west African countries
such as Mali and Ivory Coast.
About 15 billion euros ($15.81 billion) were transacted via
Orange Money last year, Rennard said. Orange's payment and new
banking service should add 400 million euros to group revenue by
2018, he said.
Orange also plans to launch its bank in Spain, followed
possibly by Belgium.
Orange Bank will cost the group about 100 million euros in
2017, Chief Executive Stephane Richard said last week. The
telecoms operator aims to reach breakeven within five years.
($1 = 0.9489 euros)
(Reporting by Mathieu Rosemain; Editing by Bate Felix and Susan