Launched in July 2019 with the ambition of winning over one million customers, Ma French Bank ultimately failed to achieve its objective. Despite tempting offers, such as free credit cards, the establishment has never managed to become profitable. This situation led La Banque Postale to make a radical decision: to put an end to the activities of its digital subsidiary.
This withdrawal comes in addition to other recent closures in the sector, notably those of HSBC and Orange Bank. In total, nearly two million French customers are impacted by these banking upheavals. This situation raises questions about the viability of online banks' business models in the face of increasingly fierce competition.
The reasons for failure and its consequences
Several factors explain the collapse of Ma French Bank:
- An unsustainable business model based on low-cost services
- High operational costs not offset by the revenue generated
- Increased competition from players like Revolut, N26 or Boursorama Banque
- Difficulties in quickly adapting to technological developments and consumer expectations
Faced with these challenges, La Banque Postale had to resolve to close its digital subsidiary. This decision will have significant repercussions on the French banking sector, pushing other establishments to rethink their strategies to remain competitive. Some banks could even consider increasing their rates, as shown by the example of two large French banks which are penalizing 13 million customers with rate increases.
What options for affected customers?
For the 675,000 customers of Ma French Bank, it is time for reflection. La Banque Postale offers an attractive transition offer to facilitate the transfer of accounts:
| Benefits offered | Conditions |
|---|---|
| 50 euros offered | Opening an account with La Banque Postale |
| Zero fees on payments and withdrawals abroad | Until the end of 2024 |
| Personalized support | For the transfer of accounts and associated services |
However, customers remain free to choose another bank. It is crucial for them to compare offers and select the establishment that best suits their financial needs. Some could even consider closing their housing savings plan (PEL) to save money, an option that concerns around seven million French people.
The future of the French banking sector in question
The closure of Ma French Bank raises questions about the future of the French banking sector. We can expect:
- A consolidation of the market, with the survival of the most financially and technologically solid players
- Intensifying competition, pushing banks to innovate more
- An overhaul of economic models to adapt to new market realities
- An acceleration of digitalization and the rise of fintechs
In this changing context, banking establishments will have to redouble their efforts to retain their existing customers and attract new ones. Some might be tempted to follow the example of a large French bank which is going to triple its fees, at the risk of dissatisfying their customers.
The closure of Ma French Bank therefore marks a turning point in the French banking landscape. She reminds us that even established institutions must constantly adapt to survive in an ever-changing environment. For customers, it is an opportunity to reassess their banking needs and choose financial services that meet their expectations.
