IBS Journal June 2016


43


bank with us.


Secondly, we already have an extensive retail network in the form of our shops, that, although we have no intention of turning them into banking branches, will be very efficient in terms of acquiring new customers. Our shops will complement the mobile subscription service, reassuring customers through a bricks and mortar presence. We also have considerable know- how in marketing and technology.


Thirdly, we will leverage our strong partnership with Groupama, which shares the same vision about the evolution of the market. Orange will leverage its brand, its customer base, its branches, and we will provide the right apps for the right services, aggregating FinTechs that we have already developed relationships with through our Orange Digital Venture initiatives and Orange Fab startup accelerator programme.


ST: What value propositions can you bring to customers?


MR: As mentioned, we have no intention of turning our retail shops into banking branches but they will act as very efficient acquisition tools. At launch, account opening will be possible in 150 shops, where employees will receive dedicated IOBSP training. Orange wants to create a simple and transparent banking experience. It will be mobile-driven and distinctive in terms of price and customer-focus experience.


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. At this stage we do not wish to provide details about the propositions which will be saved for the launch. However, two examples of topics we are looking at: Improving the customer experience, overall, but in particular around payments. At the moment, we see that no one is really aggregating the services - P2P, NFC etc. We will seek to facilitate the existing payment issues.


And simplifying and making loans and credits for our customers more transparent. Today, the savings market is still very complex and we think we can improve it and even make it more ‘fun’ for people, whilst removing the stigma. But ultimately, we believe that by making customers’ lives easier, cheaper and more efficient, we will be successful in this market.


ST: Orange already offers financial services in the Middle East www.ibsintelligence.com


and Africa via Orange Money and Orange Finanse in Poland. Could you give an update on how these services are faring and the knowledge gained that can be brought to the launch of Orange Bank?


MR: Our mobile money offering for the African continent and the Middle East, where we have a large operational presence, is based on payment services under the Orange Money brand. It is still very much a growing business. Today Orange Money is available in 14 countries and we have nearly 18 million customers which represents a 34% year-on-year growth. More than five million of them use the service on a monthly basis. We believe that there is still plenty of room for growth.


At the moment, we offer three types of transactions including money transfers, with the ability to make electronic money transfers internationally and even transfers to customers of other operators; payments, whereby users can pay certain bills remotely and easily buy phone credit; and financial services including savings and insurance solutions, depending on the country.


We also see an opportunity to extend the ecosystem including operating ‘corridors’ to and from Africa, as we are doing by opening up Orange Money services in France to serve the diaspora. We will take this to other European countries in due course. Overall, the success of Orange Money has given confidence to Orange as a Group to invest further in mobile financial services.


In Eastern Europe, where we have launched Orange Finanse, it is a very different market to Africa and also to Western Europe. Every country is very specific. And because the regulation in banking is very country-specific we have to find local partners. That is why in Poland with Orange Finanse we decided to launch our mobile bank as a partnership with m-Bank.


In France, the market is highly regulated and therefore we need a licence to be a bank. That is something that we get through the stake in Groupama. In France, as well as other Western European markets, it is important to move beyond payments in order to be profitable. The banking licence allows us to extract value. That is why we decided to acquire a bank in order to serve customers on all other areas; credits, loans, savings and current accounts, for example.


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