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TLDR:
Société Générale is reportedly considering selling Shine, the neobank for freelancers and small businesses it acquired in mid-2020, according to French newspaper Les Echos.
- The French banking giant is currently weighing up its options for how it can part ways with Shine and is approaching potential buyers.
- Shine initially found success in the neobanking market with business accounts and debit cards tailored to freelancers and small businesses, powered by Société Générale’s subsidiary Treezor.
- Despite significant growth in customer count and revenues, Société Générale is looking to sell Shine in an effort to cut costs following a downturn in France’s retail and online banking market.
Société Générale is reportedly seeking a new buyer for neobank Shine, which it acquired in mid-2020. The French banking giant is weighing up its options for selling Shine and is approaching potential buyers, according to French newspaper Les Echos.
Shine, which launched in 2018, initially found its success in the neobanking market by offering business accounts and debit cards tailored specifically to freelancers and small businesses. The neobank was powered by Société Générale’s subsidiary Treezor.
Since the acquisition, Société Générale claims that Shine has doubled its customer and employee headcount and tripled its revenues over a four-year period. However, it seems that the bank is now looking to sell Shine in order to cut costs due to a downturn in France’s retail and online banking market.
The move follows similar actions from other financial institutions in France. Dutch financial services firm ING announced its departure from the French market in December 2021, citing a lack of room to scale as one of the reasons. Earlier in 2021, French telecommunications giant Orange Group entered exclusive negotiations with BNP Paribas to transfer its Orange Bank customers as it plans to withdraw from the retail banking market. Additionally, La Banque Postale announced its plans to shut down its 100% mobile bank offering, Ma French Bank.
It remains to be seen who Société Générale will find as a buyer for Shine. Nevertheless, the decision highlights the challenges faced by neobanks operating in a competitive and evolving market, as well as the importance of cost-cutting measures for established banks trying to navigate the changing landscape.
