Qonto Banking License: What It Means for Fintech and SMBs in Europe
“Is Qonto a real bank?” That question frequently pops up among freelancers, small business owners, and fintech watchers alike. The answer has always been no—until now. After reaching a significant milestone of 600,000 customers across Europe, French fintech Qonto has officially applied for a banking license in France. This move marks a pivotal shift from its current operations under a payment institution license to potentially becoming a fully licensed credit institution. The implications are massive, especially for its core customer base of freelancers and SMBs seeking broader financial solutions under one digital roof.
Image Credits:Qonto
Qonto Banking License to Unlock Lending, Savings, and Investment Services
With its existing payment institution license obtained in 2018, Qonto has successfully provided essential financial tools, including a limited form of buy now, pay later (BNPL). However, a full credit institution license would allow Qonto to significantly expand its offerings. These would include robust lending services, business savings accounts, and access to investment products tailored specifically for small and mid-sized businesses.
Currently, Qonto's license enables operations across EU markets, which has helped it scale rapidly. However, the absence of credit capabilities limits how deeply it can serve its existing users. Filing for a banking license signals that Qonto is not just looking to compete—but to lead—by offering services traditionally available only through incumbent banks. If granted, this license would help Qonto move closer to its goal of serving 2 million customers by 2030.
How Qonto Compares with Other European SMB Fintechs
While Qonto’s move may seem like a natural progression, navigating regulatory frameworks in Europe isn’t easy. Other fintech players have taken varied paths. For example, Memo Bank launched as a fully licensed bank and offers lending services from the outset, making it a rare case in the fintech space. Finom, meanwhile, operates under an electronic money institution (EMI) license and has only recently started exploring lending options. Even fintech giant Revolut, despite having a Lithuanian banking license, has yet to roll out comprehensive credit services for businesses.
What makes Qonto unique is its strategic timing. Rather than playing catch-up, the company has leveraged steady growth and early profitability to approach this expansion from a position of strength. According to CEO Alexandre Prot, the decision to apply for a license now is directly linked to Qonto achieving profitability ahead of schedule in 2023. This milestone gave the team confidence to take on the complexities of becoming a licensed bank.
Why Qonto's Banking License Application Matters Now
Securing a banking license isn’t just a regulatory checkbox—it’s a transformation of business identity. For Qonto, this means evolving from a fintech platform offering basic business accounts into a one-stop financial ecosystem for Europe’s growing army of entrepreneurs and small businesses. It also signals that the fintech landscape in Europe is maturing, with companies like Qonto poised to take on traditional banks with more agile, tech-first approaches.
There’s also the competitive pressure to consider. With Revolut publicly announcing plans to seek a French license and base its Western European operations in Paris, Qonto’s move may be partly preemptive. However, Prot was quick to clarify that the decision was independent of competitors and driven by internal growth metrics and readiness. Backed by a leadership team that includes the son of a former BNP Paribas president, Qonto has both the ambition and the institutional insight to scale responsibly.
As the fintech space braces for continued regulatory evolution and higher customer expectations, Qonto’s application for a banking license could set a precedent for other European B2B fintech startups. By becoming a licensed credit institution, Qonto positions itself not just as a tool for managing finances—but as a full-service banking alternative built for the future of work.
Qonto’s pursuit of a French banking license marks a bold new chapter in its journey to redefine how freelancers and SMBs manage their finances. By stepping beyond the constraints of a payment institution license, Qonto is signaling a commitment to deeper, more meaningful financial services. Whether it's lending, savings, or investments, the fintech startup is preparing to offer a suite of tools traditionally dominated by legacy banks—but with a modern, digital-first experience that resonates with today’s entrepreneurs.
As regulators review the application and competitors look on, one thing is clear: Qonto’s move is not just about licenses—it’s about leadership in the European fintech space.
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