Orange Bank bows out: everything you need to know about migrating to Hello bank

Orange’s banking adventure, initiated in November 2017, is coming to an end. Since last February, a transitional phase has been initiated, offering Orange Bank customers the opportunity to transfer their accounts to Hello bank, the digital subsidiary of BNP Paribas. This delicate operation, which ends this month, sounds the death knell of a risky business in the banking sector for the telecom operator. It will therefore not have reached its two million customers that it planned for 2025 nor its profitability threshold for 2022.

The transition to Hello Bank

Since last February, Orange Bank has orchestrated a vast migration operation, concerning nearly 400,000 customers, to the Hello bank platform. It is possible that the bank was perhaps aware of the challenges it would face in the long term and decided to take preventive measures. Indeed, Orange Bank was never profitable, accumulated significant losses and offered a limited range of banking products and services compared to its competitors.

Hello bank therefore contacted the last eligible customers by post at the end of June, giving them a few weeks’ reflection period. To facilitate this transition, Hello bank has not only simplified its membership process, but also implemented an incentive system of bonuses.

This alliance catalyzed the growth of Hello bank, allowing it to approach the symbolic milestone of one million customers, compared to 800,000 at the end of the previous year. Although the final results of this major operation remain confidential, it is clear that Hello bank aims for a rapid and effective conquest of the market. Observers are eagerly awaiting the publication of the official results of this migration, planned for the end of the summer or the beginning of the fall.

The future of Orange Bank credits

Beyond the delicate operation of transferring current accounts, a question persists as to the future of Orange Bank’s credit portfolio. This asset, inherited from Groupama Banque, includes a range of real estate loans and consumer credits. According to information reported by Les Echos and SamaGame, This portfolio is about to be acquired by the American investment fund KKR (Kohlberg Kravis Roberts & Co.), one of the oldest and most important in the world.

In addition, Orange Bank played a key role in financing smartphone purchases on credit within Orange stores. To fill this gap, The operator has skillfully negotiated a new partnership with Cetelemanother entity of the BNP Paribas group, thus guaranteeing the sustainability of financing solutions for its customers. This maneuver clearly illustrates Orange’s desire to maintain a financial services offering, even after the cessation of the activities of its banking subsidiary.

  • Orange Bank is closing its doors, but is allowing its customers to migrate to Hello bank.
  • As a result, nearly 400,000 people are affected by the transfer and Hello bank is now close to one million customers.
  • Orange Bank’s credit portfolio could be acquired by KKR, with Cetelem taking over smartphone financing.

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