France-based Orange Bank is discussing the sale of its affluent client segment of customers to Milleis Banque.
The proposed deal means that Orange Bank is to focus its activity on the mass market segment.
European private equity firm AnaCap acquired Barclays’ French retail, wealth and investment management operations in September 2017.
Barclays France subsequently rebranded as Milleis Banque.
If a deal is agreed, Orange Bank’s affluent clients will access the products and services offered by Milleis Banque. This includes a dedicated private banker and a range of investment products and real estate credit.
Since acquiring Barclays’ French unit, Milleis Banque has targeted the private banking segment and top end mass affluent clients. Milleis Banque operates a branch network of 35 outlets.
When it purchased Barclays France, the new owners said it aimed to double customer numbers to 200,000 by 2024.
In particular, Milleis Banque focuses on clients with savings of up to €1m whose specific needs are not met by private banks or mainstream retail banks.
In addition, Milleis is targeting young entrepreneurs and mass affluent, digital natives aged 35 to 50.
Orange Bank is the banking subsidiary of French mobile telecom Orange. Since launching two years ago it has grown customer numbers to over 500,000.
Orange Bank: targeting 2m customers by 2023
Moreover, the bank says that it continues to attract new customers at the rate of over 20,000 per month.
The rate of customer acquisition is up by more than 40% compared with 2018.
In addition, around 10% of accounts are now opened with a Visa Premium card.
Holders of the Visa Premium card benefit from a 5% discount on purchases in Orange stores.
It is targeting break even and 2 million customers in France by 2023.
Orange Bank also targets growth in Spain and 1 million customers by the same date.