© Ma French Bank
The bad news has arrived. Initiated in December 2023, the social dialogue between the teams of Ma French Bank and the executives of La Banque Postale has ended. Unsurprisingly, the group's mobile bank is ending its activities, leaving 675,000 customers orphaned.
The closure of Ma French Bank will be spread over a period of 12 to 15 months, from June 2024 to the summer of 2025, thus giving customers a reasonable period of time to find alternatives. This decision, although difficult, is not really surprising as the banking sector, in full transformation, seeks profitability with its digital products.
The main concern that emerges from this announcement naturally concerns the future of the 675,000 customers of Ma French Bank. La Banque Postale wanted to reassure on this point, stating that “this cessation of Ma French Bank's activities presents no risk for clients' assets and deposits, which will remain accessible throughout the procedure, until their accounts are closed” ;.
Concretely, customers will be informed individually by mail during the year 2024 of the next steps concerning them. La Banque Postale has developed a strategy aimed at retaining these customers within its ecosystem, by offering them various incentives to open a traditional current account:
< p>Profitability, that’s the whole problem with Ma French Bank. Despite a promising start and sustained growth in its customer base, the neobank failed to achieve the expected profitability. The ambitious goal of reaching one million customers was set, a figure that seemed within reach with its 675,000 current users. “Despite undeniable success with customers, Ma French Bank’has not achieved profitability and’has not yet found its economic model” explains the group.
This situation perfectly illustrates the paradox faced by many fintechs and neobanks: attracting a large number of customers does not necessarily guarantee economic viability. In an environment where margins are compressed by fierce competition and historically low interest rates, conquering market share is not always enough to ensure the sustainability of a banking establishment. Orange had the bitter experience with Orange Bank, Banque Postale joined it.
The online and mobile banking sector is characterized by very strong competition. Historical players, neobanks and tech giants are engaged in a merciless battle to capture the attention and loyalty of consumers. This situation leads to a frantic race for innovation and the constant expansion of the range of products and services offered.
For Ma French Bank, this dynamic has resulted in the need to make significant investments to stay in the race. However, La Banque Postale explains that “such an orientation no longer appears compatible with the strategic plan of the La Banque Postale group, which plans to prioritize its investments on the& #8217;acceleration of its digitalization”. This statement highlights the complex trade-offs faced by traditional banking groups in their digital transformation strategy. La Banque Postale is certainly not the last to bear the brunt of this fierce competition.
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