Telecom network operator Orange is set to acquire a 65 percent stake in Groupama Banque as part of enhancing mobile banking business.

Groupama Banque will have the balance 35 percent stake in Orange Bank.

The investment in mobile banking business will enable Orange to move forward rapidly to provide 100 percent mobile banking service, first in France and then in Spain and Belgium.

Orange Bank will launch banking service specifically for mobile usage in France in 2017. This service will be marketed under the Orange brand within Orange’s own distribution network and under the Groupama brand within Groupama’s distribution networks.

Orange Bank’s services on mobile phones will cover current accounts, savings, loans and insurance services, as well as payment. The aim is to attract over two million mobile banking customers in France.

Orange CEO Stephane Richard said: “This agreement is a major step forward in our ambition to diversify into mobile financial services as we outlined in our Essentials2020 strategy.”

Orange said Groupama Banque had more than 530,000 customers, outstanding deposits exceeded €2.1 billion and outstanding loans amounted to ca. €2 billion.