BPCE French financial firm has gained one of Germany’s infamous online banks, Fidor, to accelerate its push into digital services. The bank announced the deal in a joint statement but did not disclose the financial details. Fidor, an entirely online-based bank that praise itself on executing all of its services in under 60 seconds, and aims to give its 120,000 clients access to a wide selection of services provided by other fintech partners. It recently partnered with Spain’s Telefónica to launch a mobile bank account for customers of the telecom operator. It will remain independent after the takeover, which will help it address a capital pressure.
For BPCE, France’s second-largest banking group, the acquisition marks the move into digital services as more customers handle their business online. This operation constitutes a milestone in the acceleration of the digital transformation of our group, BPCE CEO Francois Perol said in a statement. Our growth made us reach the limits of our capital resources,Fidor CEO and co-founder Matthias Kroener told Reuters, adding that the deal with BPCE allowed the company to reach the next phase of growth. The German lender recently partnered with German telecoms operator Telefonica Deutschland to offer an online bank account that pays out interest to customers in the form of mobile phone data usage rather than cash. The German firm describes its business model as an online community for people to supply and accept financial counseling, giving users rewards for doing so such as cash, enhanced current account and savings percentage rate.