Orange outlined a goal to double its number of mobile money users in Africa and launch full European banking services in four new markets by the end of 2023.
It is aiming for net operating income of €500 million from Orange Bank in Europe by end-2023 with a target of attracting 4 million customers by that date. It also plans to offer a more basic version of its bank in two additional European markets.
Outlining the company’s growth plans for its financial services divisions, deputy CEO Ramon Fernandez (pictured) said Orange is hoping to recoup set-up costs for its Spain and France banking operations by end-2023.
The service first launched in France in 2017 with Spain expected to go live by the end of 2019. Markets slated for 2020 to 2023 are Slovakia, Poland and Belgium. Romania and Moldova will receive an app featuring a combination of functionality available to Orange Bank customers in Europe and Orange Money in Africa. This combined offer will also be launched in Morocco.
It is able to launch the service across the EU through its French banking licence under passporting regulations.
By end-2023, the operator will expand Orange Money into two new markets in Africa, taking its footprint to 19, with the company aiming to double user numbers to 30 million. Revenue for the service is expected to top €800 million.
Orange deputy CEO for financial services Paul de Leusse noted its growth in Africa would be driven by increasing the number of services available to consumers (subject to regulatory approval), and benefits derived from interoperability and a boost in merchant users from the launch of MTN JV Mowali.
Fernandez added Orange’s drive in its financial services operation was part of a wider strategy to create “a progressive stream of new revenues from adjacent sectors.”
In addition to banking, it aims to continue to grow takings from IT services and IoT. In 2022 it hopes to make 13 per cent of its revenues from non-core communications services, up from an estimated 9 per cent in 2018.Subscribe to our daily newsletter