The proposed Orange Bank will be launched in 2017 in France, with plans to expand to other European markets such as Spain or Belgium.
The new mobile bank is said to provide all standard banking services as well as savings, loans and insurance services.
Orange CEO Stéphane Richard said: "Orange benefits from a unique combination of essential assets that will enable it to successfully launch a highly innovative, 100% mobile bank. These include a strong brand embodying key values such as security and reliability, a solid distribution network and above all the confidence of 28 million customers in France.
"Our partnership with Groupama, which has recognized expertise and key assets in the areas of both banking and insurance, will enable us to accelerate the implementation of our strategic ambition to be able to offer our customers Orange Bank services in France from the beginning of 2017."
The stake in Groupama Banque will enable Orange to benefit from an existing operational infrastructure for the launch of Orange Bank.
Orange is aimed at diversifying its operations by focusing on mobile banking in order to increase its revenues in financial services to €400m in 2018.
Groupama CEO Thierry Martel said: "Orange’s technological leadership and the ubiquity of mobile phones will enable us to move forwards, faster and further, to create a bank that factors in all the possibilities and the fluidity that is inherent in today’s technology.
"In a word, and without revealing the innovations at this stage, Orange’s know-how and expertise in robust digital systems will enable us to go beyond online banking applications that are currently available on smartphones in order to transform users’ mobiles into a virtual bank and insurance branch that is always at hand."
Groupama Banque offers banking products and services to individuals, professionals and companies.
As at the end of 2015, Groupama Banque had more than 530,000 customers and outstanding deposits worth €2.1bn.
Image: The proposed mobile bank will provide all standard banking services as well as savings, loans and insurance services. Photo: courtesy of blackzheep / FreeDigitalPhotos.net.
