Orange Bank changes hands under the leadership of the operator’s new CEO, Christel Heydemann. Through a press release, the incumbent telecommunications operator announces that Stéphane Vallois, current deputy general manager of Orange Bank, will succeed Paul de Leusse as general manager of the bank as of October 1, 2022.
Paul de Leusse, whose commitment has allowed Orange Bank to evolve towards a value strategy, develop internationally and make its mobile application one of the best on the market, will leave the Group.
“Orange Bank has almost 2 million customers in Europe. Orange Bank Africa, launched in Côte d’Ivoire in 2020, now has 800,000 customers. Stéphane Vallois will be responsible for further developing Orange Bank in the strategy-driven dynamics of the future plan “, adds the group.
Increase in capital
Let us remember that almost a year ago, after thinking To sell BNP Paribas or Société Générale, Orange decided to keep the reins of its online banking subsidiary launched 5 years ago.
Despite the difficulties and recurring losses, the incumbent operator has decided to put fresh money into the pot with a capital increase of 230 million euros.
At the same time, the group announced that it was going to buy the 21.7% stake of its partner Groupama in the capital of Orange Bank. The transaction amount was not sent.
With these initiatives, Orange intends to breathe new life into its subsidiary in France and internationally and finally reach profitability by the end of 2024. early 2020this goal was set for 2023…
The capital increase will finance technological developments, in particular through acquisitions. “The new activities are built in alliance with the best of fintech: after the acquisition of Anytime for Pro/SME offers and the signing of a strategic alliance with Younited for credit, a call for tenders is opened for new insurance offers”, assures Orange.
The operator continues to believe that the combination of offers and its physical distribution network, as well as its European dynamics, constitute an important lever for growth.
2 million customers
However, the search for profitability for neobanks remains difficult. Even when they are backed by large banking groups and even when the number of clients is important.
Crédit Agricole had to recapitalize again, for the third time, its subsidiary BforBank. Even industry pioneer Boursorama, launched 17 years ago, is barely profitable despite having more than 2.5 million customers.
In reality, all of them attract customers with very low rates and, in most cases, with large bonuses. A very aggressive commercial strategy that, according to the banking regulator, can represent up to 24% of your income.
Therefore, expensive clients pay but contribute little. Only 7% of customers decide to make their online bank their main bank. However, this is the key to turning them into profitable customers.
Source: BFM TV
