The Finance Foundation
Reinventing capitalism for all
AUTHOR
Michel
Gabrysiak
President of the Finance Foundation

Orange the telephone company wants to be a bank A very tough assignment
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            Orange is not satisfied with the financial results of its telephone business, whether landlines, or mobiles. The profitability of the company has been very low. In 2015 it made 0.5%, in 2016 0.6%, nothing to satisfy its shareholders.

            Therefore it is looking for new activities, and Mr Richard, its chief executive, has selected one area of development. It is banking and financial services. Hard to believe, but true. The new Orange online bank will include everything from payment services, to savings, to insurance and …… The only problem is that banks are already many;  that competition is fierce, that online payments, savings and banking are developing full speed from all parts, so that our telecom company in banking may find it extremely tough. 

            Other telephone competitors are betting on television, on sport, on links to enormous amounts of programming. They try to compete, indirectly, with Netflix and with national television networks. Not an easy one either. The refusal of TF1 he french TV network lo give access to SFR the telephone company is a sign.

            The question for all of us users of telephones, emails, messaging is whether telephones will do everything and become mammoth universal monopolies. Is it safe for us to be in one hand only, or should there not be specialised sectorial groups to serve the community? 

 

 

Write to The Finance Foundation at info@finance-foundation.com
Orange the telephone company wants to be a bank A very tough assignment
July 31, 2017 , Michel Gabrysiak
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