Telecoms giant Orange becomes the first major Telecom in France to enter the online banking on Thursday, Reuters first reported on Wednesday.
Altice is expected to join the race in 2019.
Orange aims for two million clients and a 25% share of the surging online banking market, widening its portfolio of services offered through its smartphones. The company is thus entering a new sector, as the French telecoms market becomes saturated.
Orange expects to make €400 million from online banking services in 2018.
The Telecom giant is confident that its technological edge and a 21 million telecom client base will give the company an edge in the online banking business in France. The chief executive of the new Orange Bank, Andre Coisne, has previously worked for the online platforms of traditional banks ING Direct and Credit Agricole’s BforBank.
Orange is already entering the online banking market in Poland and Africa. As the leading online banking market in the world, Africa is expected to yield half of the revenue stream for Orange.
Consultancy Ernst & Young projects a six-fold growth of the online banking business over te next decade. Growth is driven by the advent of Open Banking regulation, which should allow companies access to banking data with the customers’ consent, allowing for the development of tailor made needs.
The company also expects banking to work in synergy with its telecom services, as Orange going beyond the offer of media content to consolidate its customers’ base.