German digital challenger bank Fidor is to be acquired by French banking group BPCE. Fidor Bank will remain an independent business after the agreement, with founder and CEO Matthais Kröner remaining as chief executive.

The challenger bank’s internal structure will be adjusted, with the new ‘Fidor Holding Group’ acting as a parent company for the bank and the rest of the firm’s future and current business offerings, such as Fidor AG, the white-label technology solution provider for digital banking.

Fidor said that the new deal would support the company’s overseas expansion and development of its proprietary digital banking technology.

Kröner commented: “This move will allow Fidor to continue its international expansion and drive the development of our innovative digital technology even further. In a world of increasing volatility it is important to be member of a strong group, and this transaction is strongly improving our overall financial sustainability. We are excited to have such a well-established partner as BPCE in the financial world that recognises the need for an entrepreneurial approach to banking and innovation.”

François Pérol, chairman of BPCE, added: “This operation constitutes a key step in the acceleration of the digital transformation of our group. It further demonstrates our commitment to innovation, to developing a customer centric approach enabled by a digital banking technology, and to be more involved in the digital and mobile banking field. We are very proud and happy to welcome Fidor’s teams, communities and clients into Groupe BPCE.”

BPCE is France’s second largest banking group, comprised of Banque Populaire and Caisse d’Epargne, which have more than 8,000 branches nationwide.

Just this week it was announced that Fidor would be supporting ‘O2 Banking’ in Germany – the first mobile bank account to be provided by a telecoms operator.

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