French telecoms giant Orange is in exclusive talks with BNP Paribas about a takeover of its retail banking subsidiary.

The French telecoms giant, which recently revealed its intention to withdraw from the retail banking market in France and Spain, said that the negotiations will define a referral partnership for the Orange Bank customer portfolio in France and to develop financing solutions for mobile devices.

Orange and BNP Paribas will also discuss the terms of a takeover of the company’s banking business in Spain.

Orange Bank assured customers that the move would not impact services, existing loans or day-to-day operations, including the taking of deposits and the granting of loans.

"The evolution of the banking market now leads us to guide the bank into a new phase," said Christel Heydemann, Orange Group chief executive. "Our priority will be to provide exemplary support for all our employees and customers."

She added: "This process will be carried out in complete transparency, within the framework of our dialogue with our staff representative bodies."

Thierry Laborde, chief operating officer of BNP Paribas said that the bank, which already has a partnership with Orange, is happy to be able to provide a "complete continuity solution" for Orange Bank customers following its decision to withdraw from retail banking.

"Whether it's day-to-day digital banking with Hello Bank, consumer credit with BNP Paribas Personal Finance, or insurance, which we already operate through a partnership between BNP Paribas Cardif and Orange, we will support customers with a solid banking package and high-performance services," he said.

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