Reuters – Exclusive – Orange is the new bank? Telecoms giant ventures into lending
Telecoms giant Orange launches its own bank on Thursday, aiming to win 25 percent of France’s online banking market by capitalizing on the rising use of smartphones to steal share from established lenders with inferior technology.
If Orange meets its target of 2 million customers in the next 6 to 10 years, it would likely be at the expense of these rival online businesses. But for Orange, banking would remain a small business relative to its overall size, says Bengt Nordstrom, CEO of telecoms consulting firm Northstream.
“This would only bring a very small stream of additional revenue relative to the scale of Orange,” he said.