Banking future bright for phone firm Orange

Telecoms giant Orange is to launch its own bank tomorrowas it aims to win 25 per cent of France’s online banking market by capitalising on the rising use of smartphones to steal share from established lenders.

“We are targeting two million clients in ten years. That would represent 25 per cent of the (online banking) market, but I hope we will not stop there ... and we will be the market leader in several years,” Andre Coisne, chief executive of Orange Bank, said.

Coisne has previously launched online banks in France for ING Direct and Credit Agricole’s Bforbank.

Analysts said that Orange is starting from a small base, but Coisne said 25,000 customers have expressed interest ahead of the launch, a tiny fraction of the company’s 21 million mobile clients. But the timing of its entry gives some room for optimism, analysts said.

In France, 793.4 million online banking e-payments were made last year according to the European Central Bank, up from 586.2m in 2014.