“Is Qonto a real bank?” It is one of the top suggested questions on Google searches about French startup Fintech. The answer is no, but it could change: Qonto has submitted a bank license in France, CEO Alexandre Prot revealed.
QONTO, which aims for European freelancers and media, is currently operating with a payment license acquired in 2018 and this has already allowed to enter A market form now, pay later (BNPL). However, a credit institution license will allow it to provide broader lending, saving and investment options to its target customers.
Since the current license is valid across the EU, Qonto has already managed to expand to several European markets and recently reached the landmark of 600,000 customers. However, the lack of credit leave is an obstacle to its goal of reaching 2 million customers by 2030.
While offering a more comprehensive solution seems like a natural move to compete with established banks, licensing and credit raising is not easy. This explains why Qonto Fintech competitors have approached this issue in different ways and why Qonto does not exactly play the catch-up.
Bank Memo was Was founded as a bank From the beginning and offers borrowing to MMB, but this makes it a divergence. Finom operates with an electronic institution (EMI), but has just begun to test the type of borrowing that allows this regulatory medium ground. Revolut has a full Lithuanian license, but in addition to BNPL, it has not yet developed business credit options – although this Plans to do this this year.
Still, the marketing force of well -funded competitors operating in both B2C and B2B could have been a sign that Qonto had to be accelerated, especially as Revolut recently announced plans to seek French license and Convert Paris to Western Europe.
They do not report competitors, Prot said Qonto’s timetable was led by “Having achieved profitability before the timetable in 2023.”
The son of the former president of BNP Paribas Baudouin ProtQonto’s CEO had apparently already thought of pursuing a credit license – and this is not just a guess. During a press briefing, Prot confirmed that he and co -founder Steve Anavi seriously examined the idea at one point, but eventually rejected it because it would take too much time and additional concentration of funds.
Having won by 2023, it means that this obstacle now will not require Qonto to increase more funding than the $ 552 million it secured in 2022 with a $ 5 billion valuation. Primary recently said That “the Lord, or the only reason, because we could draw additional capital is whether we make a large or very large agreement of mergers and acquisitions, which is mainly paid in cash.”
In its eight years of existence, Qonto made two acquisitions: took over Penta’s German competitor in 2022 and bought accounting and financial automation platform Reign in 2024.
The latter is a reflection of Qonto’s placement beyond banking and as a complete funding management solution, with an offer that also includes pricing and accounting tools.
This approach has helped to grow in B2B section throughout Europe. Prot refused to give a complete distribution of its 600,000 customers, but said Germany is now Qonto’s largest market after France. In an unspecified order, Spain and Italy come next, followed by the markets entered in the late 2024: Austria, Belgium, the Netherlands and Portugal.
Still, the Prots works in the assumption that some customers will not choose Qonto unless it is a credit institution. This is because this will give them additional guarantees for their deposits and because they want to be an option if they ever need it, something that some already do.
Qonto has validated this demand for credit with its remuneration. Started in 2024, it has already facilitated the € 50m funding (about $ 59 million), according to the company. But the offer is limited by its current license – both for Qonto, which can only lend it from its own and its customers, who cannot borrow for more than 12 months.
To help his clients access other types of loans, Qonto also put together a “Funding address” With third parties Fintech, including Defacto, Karmen, Riversideand Silvr. Prot said Qonto is planning to keep it for at least a few more years. And some of these offers are more specific than the company may want to enter.
Still, becoming a credit institution on its own will unlock new revenue for QONTO, both from the margins to credits and more from the deposits it could use for borrowing. Prot refused to disclose revenue data, but said revenue increased by 30% in the last year.
However, Prot said that these additional revenue was not the main factor. By acquiring new customers, Qonto also considers this as an opportunity to depend less on others and start the fastest products. In the same vein, he recently created an interior card processor to increase acceptance rates while reducing his dependence on third parties.
With a group of 1,600 people, Qonto is now hoping to have the bandwidth to work on new product developments, such as the “Qonto Intelligence” mattress with AI capable, while boosting banking infrastructure and risk management teams.
The latter also aims to prove his readiness to the bank’s banking supervisor, with whom he plans to work closely to obtain his permission. The process may take years, but it is also part of a wider “growing” effort for Qonto, which recently added several higher profiles to its Board of Directors. These steps could also help place the bases for a future iPO, though it remains a long -term perspective.
Note: The title of this story changed to clarify that Qonto is not yet a bank.
