French tobacconists to offer banking service

The French will soon be able to buy their cigarettes and do their banking at the same time with the launch of a stripped-down, cut-price bank account by the country’s huge network of tobacconists.

France’s 27,000 “tabacs”, whose distinctive red, diamond-shaped signs dot the nation’s streets, will be out to win business from the likes of BNP Paribas and Société Genérale as established banks cut back their retail networks.

The Nickel bank account, which after initial tests is due to be expanded nationwide next year, will offer customers a debit card and a current account for €20. That compares with about €28 to €30 for the cheapest payment cards at BNP, SocGen and Credit Agricole.

Although Nickel clients will be charged fees for depositing and withdrawing money, the tabac association CBF still estimates the cost of having an account at less than €50 a year. The association says this is a third less than the cost of an account with Bank of France.

Nickel, co-founded by ex-SocGen communications chief Hugues Le Bret, also wants to lure people who may be unable to open a more traditional bank account.– (Reuters)