Orange to Exit Banking Business and Partner With BNP Paribas

French telecom Orange plans to exit the retail banking business in France and Spain.

The firm, which launched Orange Bank in 2017, is in exclusive talks with BNP Paribas to have that organization support the bank’s customers while Orange withdraws from the business in the two countries, Orange said in a Wednesday (June 28) press release.

“I’d like to thank our teams who, thanks to their hard work and commitment, have made Orange Bank a bank that serves over 2 million customers and that benefits from one of the best applications on the market,” Orange Group CEO Christel Heydemann said in the release. “The evolution of the banking market now leads us to guide the bank into a new phase.”

It was reported in October 2022 that Orange was weighing its options for its online banking division in the wake of media reports that the company was considering the sale of Orange Bank.

“In a very highly competitive environment in the banking market, Orange is considering all opportunities to develop Orange Bank’s activities and support its growth,” a spokesperson for Orange told Reuters at the time.

The telecom company launched Orange Bank in 2017 with the goal of capturing 25% of France’s online banking market within a decade.

PYMNTS reported at the time that more and more consumers were using their smartphones for banking activities and that financial institutions that didn’t offer that technology were finding themselves at an increasing disadvantage.

As Orange Group withdraws from the retail banking market, it will work closely with authorities and regulators, consult with employee representative bodies, and ensure that there is no change in products and services delivered to customers, according to the press release.

BNP Paribas is a longtime partner of the Orange Group and Orange Bank and will provide a “complete continuity solution” to the bank’s customers, BNP Paribas Chief Operating Officer Thierry Laborde said in the release.

“Whether it’s day-to-day digital banking with Hello Bank, consumer credit with BNP Paribas Personal Finance, or insurance, which we already operate through a partnership between BNP Paribas Cardif and Orange, we will support customers with a solid banking package and high-performance services,” Laborde said in the release.