Less than four years after its acquisition, Société Générale is seeking to sell its neobank, Shine. The phenomenon of online banks is extending to other players, such as La Banque Postale or Orange.
Société Générale, which acquired the fintech Shine in 2020, is currently studying its options to separate from the neobank dedicated to professionals, in order to optimize the banking group’s stock market performance. Traditional establishments also seem to be showing a certain rejection of online banks. Others than Société Générale, like La Banque Postale or Orange, also want to stop the fees.
Société Générale reviews its online banking development strategy
Barely four years after the acquisition of Shine, Société Générale wants to sell it. The French bank is approaching potential buyers for this neobank of which Qonto is the main competitor. The move is part of a broader strategy aimed at revitalizing the bank’s stock market reputation, with potential job cuts and the sale of other activities, including the Société Générale Equipment Finance division.
For Shine, it will be recalled that founded in 2018, it was initially focused on professionals, start-ups and independents. But the neobank, which expanded its clientele last year to include VSEs and SMEs, no longer seems to fit into the plans of the new management, justifying its inclusion in the list of assets to be sold. 150,000 customers would be affected by the probable future operation.
The decision to put Shine up for sale coincides with the imminent departure of Claire Calméjane, Societe Generale’s director of innovation. She was recruited in 2018 to accelerate the development of the bank in fintechs. We imagine that his departure could signal a change in the bank’s vision regarding its digital activities, including, therefore, the neobank Shine.
La Banque Postale and Orange want to follow suit
This desired sale comes in a context where other large banks are rethinking their digital strategy, and that is an understatement to say. ING Direct, present in France since 2000, has left the French market. Its customers were repatriated to BoursoBank (formerly Boursorama), the most powerful French online bank which belongs to… Société Générale.
For its part, La Banque Postale is also considering ending its mobile bank, Ma French Bank, which has not achieved profitability, despite a solid base of 750,000 customers. Let’s also not forget the “thorn” that has been present for several years in Orange’s side, which wants to stop Orange Bank. The latter’s customers should be picked up by BNP Paribas’ online bank, Hello Bank. Orange is also looking for a buyer for Anytime, a subsidiary focused on professionals.
Often largely in deficit, online banks are suffering a severe reduction. Traditional banks appear to prefer partial deals rather than full acquisitions of fintech players, following the path of ING Direct and Orange Bank. The search for a buyer for Shine raises real questions about the future of neobanks within large financial institutions.
Source : The echoes
1