Orange Bank Unveils a Credit Offer

Initially scheduled for Autumn 2017, Orange’s consumer credit service is now being made available to all their m-banking customers. Orange promises a simple, streamlined application process for personal loans, and also plans a small surprise when it comes to “reserved” loan, a format which still isn’t very widespread in France.

This new offer by Orange Bank features a reserved loan assigned to specific goals (“prêt réservé”). Borrowers have six months, starting from the day their credit line opens, to use all or part of the amount. During this period, they may also decide to cancel the loan at no cost.

This option can be accessed in-app, through their “personal loan” tab. Customers may be lent between 500 and 75,000 euros for 12 to 120 months. Up to 7,000 euros, the loan can be granted “instantly”, based on personal information provided upon opening the account. Beyond this amount, credit eligibility depends on a certain number of criteria (amount, purpose and term of the loan, individual situation, etc.). It may then require additional time for the application to process and supporting documents may have to be provided.

Orange Bank announces an APR of 1.50 to 12.90%. For a 5,000 euros car loan to be paid back within 12 months, the proposed APR is 1.5%, excluding optional insurance.

Comments – Orange Bank offer getting structured

Orange Bank was launched six months ago and attracted 100,000 customers. They are already expanding their range of offers. Following in the footsteps of La Banque Postale, they are also betting on a faster credit granting system. This process will first be proposed to customers whose financial situation they are familiar with, and will apply to lower-value loans only (less than 7,000 euros). The option may later be opened to non-customers, as well.

Orange Bank however stands out through proposing a rather unusual service in France, i.e.: a type of personal loan almost exclusively proposed by BNP Paribas Personal Finance through their Cetelem brand. This service adds further flexibility to their offer, in line with their overall marketing positioning. As for the rest, the offer remains rather traditional. The smart assistant Djingo (powered by Watson) will also be used to answer basic questions from the borrowers.

Consumer credit isn’t the only sector Orange Bank is aiming for. They may propose a Visa Premium card as well as mortgage loans by this summer.