And two. After Orange decided to end the Orange Bank adventure by entering into a takeover agreement with Hello Bank! (BNP Paribas), it’s Banque Postale’s turn to announce this Wednesday“study plan to wind down Ma French Bank”.
The mobile bank intended for young people with a package of 2.9 euros per month, which was launched in July 2019, has not really been talked about for several months, especially in the communication about the bank’s financial results. The insurance company finally decided to stop the fees. On December 18, an information and consultation procedure with employee representatives was launched and the group committed to the internal reclassification of 161 employees of the digital bank.
750,000 customers, but no critical size
“In recent weeks, La Banque Postale carried out a strategic review of Ma French Bank, five years after its launch. Despite its undeniable success with customers, Ma French Bank has not achieved profitability and has not yet found its economic model. the bancassurance press release states. At the end of October, the digital bank had 750,000 customers. Faced with the massive investment that would be required to reach critical size, La Banque Postale chose other priorities, notably accelerating its digitization.
After the surprise removal of Philippe Heim from the chairmanship of the board this summer, despite the renewal of his mandate in February, La Banque Postale is engaged in a large-scale review of its activities with the aim of restoring the bank’s profitability, while the insurance activities through the integration of CNP now represent the majority of the financial group’s profits. It was also former CNP chief Stéphane Dedeyan who was appointed head of La Banque Postale last October.
The winding down process, if confirmed, could take 12 to 18 months and Ma French Bank customers will be offered an account transfer to Banque Postale.
After this decision, in the fast-changing world of online banking, where the critical size continues to grow over the years, the same questions arise about the reasons for this (new) failure: low added value, operational efficiency that needs to be reviewed, oversupplied market. More than ever, the race for greatness will be restarted by players still on the trail.