Orange is negotiating exclusively with BNP Paribas the transfer of its retail business from Orange Bank in France and Spain, as reported in a statement. The goal is to close retail activity in these two countries by 2025 or 2026, according to AFP.
The bank was launched in 2017 based on an agreement with the insurance company Groupama. He did it under the baton of the previous CEO, Stéphane Richard. Now under the leadership of Christel Heydemann, the subsidiary has been placed under a “strategic review”, which implies either a closure or a sale.
This branch of the business has had losses since its inception, with an imbalance of 200 million euros last year. In total, about 800 million have been left since its creation. The goal was to reach profitability in 2026.
Negotiation will be subject to information and consultation procedures with the workers’ representative bodies. “The process will be carried out with total transparency, providing information on the actions undertaken and giving priority to information and support to all employees (internal redeployment, training)”, stressed the company, which has also confirmed that it will work closely Collaboration with all relevant authorities and regulators.
Likewise, it has pointed out that, in this process, “there will be no changes in the services, in the existing loans or in the daily operations for the clients, including the taking of deposits and the granting of loans”. Orange Bank has 3.1 million customers between Europe and Africa. In the Old Continent there are about 2 million.
Heydemann announced a new strategic plan for the phone company earlier this year that involves investing in its core telecoms business, boosting growth in Africa and restructuring its declining business unit with a focus on cybersecurity.
