Groupama will retain the remaining 35% interest. The deal will allow the telecommunications firm to launch Orange Bank.
Orange Bank will launch a banking service designed specifically for mobile usage in France in early 2017.
The companies will use Orange Bank to provide entire banking services over a platform that offers customers with a digital experience on their mobile phones.
The bank will offer its customers banking services including accounts, savings, loans and insurance services and payments. The company expects to attract more than two million customers in France.
Orange chairman and CEO Stéphane Richard said: "Groupama Banque will bring an existing banking structure as well as considerable experience in managing customer relations remotely within a banking context.
"This will enable us to move forward rapidly in order to provide our customers with an innovative, 100% mobile banking service, first in France and then in Spain and Belgium.
"By leveraging the power of its brand, its distribution network and its extensive experience in digital services, Orange aims to bring mobile banking into a new dimension."
The transaction is expected to be completed in the third quarter this year, subject to regulatory approvals.
Groupama CEO Thierry Martel said: ""This partnership represents an important step for Groupama. It will enable us to leverage Orange’s technical know-how and its expertise in digital services to accelerate our existing online banking activity.
"Through this partnership, we are effectively combining two powerful and complimentary brands in order to offer our customers a disruptive banking service. We are aiming to put the highstreet bank into our customers’ pockets, turning tomorrow’s bank into today’s reality."
Earlier this month, Orange bought a stake worth €75m in Africa Internet Group, joining AXA, Goldman Sachs and longstanding investors MTN Group, Millicom and Rocket Internet.
Image: Orange Campus. Photo courtesy of Orange.
