While it is experiencing many difficulties, Orange Bank is setting up its “express loan”, a consumer credit accessible in a few clicks, including to customers who do not have a neobank account.
It is more than six months behind its forecasts that Orange Bank – Orange’s “online” bank – offers consumers its “Express loan” offer. The principle is simple: take out consumer credit in a few clicks without having to provide any documents or even be a bank customer. To develop this proposal, the neobank approached Younited. This French company specializing in consumer credit and personal loan solutions gave Orange Bank the benefit of its account aggregation technology, which makes it possible to quickly study and respond to consumer credit applications. The applicant shares their bank account history, which is reviewed by the algorithm to determine whether credit can be granted or not. In principle, the answer is given in 5 minutes, for financing ranging from 1,000 to 7,500 euros and available within 8 days.
Orange Bank: a loan at your fingertips
To seduce, the express loan plays on speed and simplicity. Accessible via the mobile application or the website, the request is made in a few clicks thanks to synchronization with the bank data of another establishment. The neobank promises a “accelerated processing of the request”, “supporting documents reduced to the strict minimum” and “more likely to have his application accepted.” The response is immediate, and Orange Bank undertakes to make counter-proposals if the request is rejected. She presents this solution as “the guarantee of a smooth and fast journey, with 0 paper, 0 postal delays, and all comfort.” Once the loan has been taken out, the customer can follow the progress of his repayments month by month via the Orange Bank application, but also download his financing plan, modify his direct debit date, adjust the increase in the amount of his monthly payment or request the temporary suspension of its deadlines. The express loan aims to finance the purchase of an automobile – car, motorcycle, motorhome, electric or hybrid vehicle –, work or life projects – travel, study, birthday, wedding… Until October 9, 2022 , it has an introductory rate from 2.99% Fixed Annual Effective Annual Rate (APR), up to 48 months for loans over €6,000.
With the express loan, Orange Bank’s objective is to“extend its activity to new customers”, since it is accessible to everyone, including people who are not bank customers. And she would need it! Even though it sees a continuous rise in customers – which number 1.8 million in Europe – it has still cost since its launch in 2017 the sum of 880 million euros in Orange. Therefore, its future is somewhat threatened. The Orange subsidiary emphasizes credit since it is one of the most profitable products. Be careful, however, for those who would like to take out consumer credit: even if the amount borrowed may seem quite modest – especially compared to mortgages – it should not be forgotten that the longer the repayment period, the more the loan costs, even if the rate seems low. Express loans, which are thus “just a click away” can represent a real temptation, without one fully measuring the consequences, and, above all, without having human contact to achieve it…