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THE BIG INTERVIEW Disruptive factors
Orange is taking a 65% stake in Groupama Banque and launching Orange Bank in France next year. Marc Rennard, Deputy CEO, Customer Experience and Mobile Banking, tells Scott Thompson why the time is right for the mobile-only new entrant
discussion with three banks. Why did you choose Groupama Banque?
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MR: We assessed proposals from several banking partners for around six months before deciding on Groupama. Primarily, we were looking for strategic alignment with ourselves in terms of developing a disruptive banking strategy. Secondly, we were looking to manage value creation and customer experience from an end-to-end point of view; that was possible with Groupama Banque. In the end, Groupama Banque was selected for the quality of its business processes and its IT infrastructure and, ultimately, for its commitment to building a long-term strategic partnership with us. They want to place the customer at the heart of the service offering, which is very much in line with Orange’s ambition to deliver an incomparable customer experience.
ST: This is a big step forward in Orange’s plan to diversify into mobile financial services as outlined in the Essentials2020 strategy. What are your immediate ambitions in terms of the launch in France?
MR: Indeed, the focus today is on launching this initially in France and we intend to roll-it out to other European countries thereafter, the first one being Spain. We plan to launch the banking service in France at the beginning of 2017. We cannot be more specific on the launch date at this time.
Primarily, what we wish to do is to create a simple and transparent banking experience. It will be mobile-driven and distinctive in terms of price and customer-focus. Orange Bank will combine the best of mobile banking (services and innovative products at competitive prices) with the reassuring side of Orange’s physical network and security capabilities.
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cott Thompson: I understand you were in
When we launch in France, the service will be marketed under the Orange brand within our own distribution network and under the Groupama brand within its distribution network. The combined ambition for the two groups is to attract over two million customers.
ST: You’re looking to take on France’s traditional banks with a disruptive service. What makes you feel that French customers are hungry for change? In the UK, for instance, there is still a lot of apathy in terms of switching current account providers.
MR: What we have noticed is that there is a big change in France in terms of the relationship between the customer and the bank – and today, people are less satisfied with the traditional banks and, subsequently, less loyal. We also see a huge trend in the adoption of mobile as the primary mode of interaction with the bank, over visiting the branch.
Also, another disruptive factor, in France at least, is that regulation is attempting to make it easier for people to move from one bank to another. For example, the French government has launched a portal that allows people to compare banking prices. We also see that some traditional banks in France are slow to adapt to the digital era and what customers are asking for in terms of easy access to services 24/7 via their mobile devices, affordability, transparency and ultimately a great customer experience.
ST: What key advantages do you have over the traditional banks?
MR: We believe this is the right time to launch a mobile bank and Orange strongly believes that we have the right assets in place to succeed in this market. Firstly, we have a strong, globally recognised brand which is highly trusted for security and reliability – key attributes in this field. And when we conducted our own survey, 35% of respondents indicated that they would be happy to
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