French fintech firm Qonto is taking a bold step forward. The company has officially applied for a banking license in France — a move that could transform its business model and unlock a broader set of financial services for its growing European customer base.
Qonto currently operates as a payment institution, meaning it can offer services like business accounts, transfers, and expense management. But securing a credit institution license from France’s banking regulator (the ACPR) would allow the company to offer full-scale banking products — including savings, credit, and investment tools.
A Fintech Success Story
Founded in 2016, Qonto has grown rapidly, becoming a leading B2B financial services provider for freelancers, startups, and small to medium-sized businesses (SMBs). The company now serves over 600,000 customers across eight countries: France, Germany, Italy, Spain, the Netherlands, Belgium, Austria, and Portugal.
In 2023, Qonto reached profitability — a rare feat in the fintech world — and now, it’s looking to scale even further. Its next target? Two million clients by 2030.
Why the Banking License Matters
So, what changes if Qonto becomes a licensed bank?
In simple terms, a banking license gives Qonto more control. Currently, many of its lending and deposit services are offered through partnerships with third-party banks. With a license, Qonto could:
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Hold deposits directly and offer deposit protection schemes
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Launch its own business loans and credit products
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Expand into savings, insurance, and other regulated financial services
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Boost trust and credibility among new clients
“This license is a strategic milestone,” says Qonto CEO Alexandre Prot. It would give the company end-to-end ownership of its financial services, helping it move from a payments-focused platform to a full-service neobank for businesses.
Backed by Strong Investment
Qonto has raised more than €600 million in funding to date. That includes a €552 million ($622 million) Series D round in 2022, which valued the company at around €5 billion. Investors include Tiger Global, Valar Ventures, and Tencent, reflecting strong global confidence in the company’s vision.
Unlike some fintechs that rely on fresh capital for major moves, Qonto says it does not require new funding for this expansion. Its profitability and capital reserves are sufficient to support the licensing process and continued growth.
Growing Focus on Business Lending
In 2024, Qonto launched its own “Pay Later” BNPL service for businesses, already issuing over €50 million in financing. This product gave the company hands-on experience in lending — a service area it plans to scale significantly once licensed.
With the new license, Qonto could extend those capabilities to more clients, offering competitive loan options tailored specifically for freelancers and SMBs.
What It Means for the Market
Qonto’s move signals a broader trend: fintechs evolving into full-service banks to compete directly with traditional financial institutions.
For customers, this could mean:
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More flexible, digital-first banking options
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Simplified access to loans and financial tools
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Streamlined services under one provider
For the market, it ramps up pressure on legacy banks to innovate and better serve the business community.
Looking Ahead
The application process with ACPR could take several months or even over a year. But if approved, it will mark a turning point for Qonto and the broader B2B fintech landscape in Europe.
With strong momentum, a clear roadmap, and deep experience in serving business clients, Qonto appears well-positioned to reach its 2030 goal of 2 million customers — and reshape how European SMBs handle their finances.