Two companies sign agreement after announcement of intent to offer a consumer finance delivery platform last November.
The operator will now offer instalment plans to finance product purchases, which will be progressively rolled out in all TIM stores. In time, they will also offer personal loans, credit cards and insurance policies.
TIM said the launch of consumer finance services is the first step after setting up the new joint venture, which will begin operating once the necessary authorisation have been obtained.
The idea is that it will allow TIM to reduce debt and optimise credit costs, and give Santander Consumer Bank access to a larger pool of customers, strengthening its position in the consumer credit market.
TIM customers have access to customised and transparent financial and insurance services, which are designed to strengthen customer relationships and reduce churn.
The joint venture company – 51% owned by Santander Consumer Bank and 49% by TIM – is claimed to be unique in the consumer credit market and will be based in Turin (pictured).
TIM was advised in the transaction by the law firm Bonelli Erede and assisted by ValeCap and JPMorgan. Santander Consumer Bank was advised by the law firm Clifford Chance and assisted by KPMG.
Orange Group has also identified banking and financial services as a key engine of growth.