Is Qonto a Real Bank? Here’s What You Need to Know
One of the most common questions on Google about the French fintech startup Qonto is, “Is Qonto a real bank?” The quick answer is no—for now. But that could change soon, as Qonto has officially filed for a banking license in France, according to CEO Alexandre Prot.
Qonto currently operates with a payment institution license it secured back in 2018. This license has allowed them to introduce services like buy now, pay later (BNPL), giving their customers flexible payment options. However, obtaining a full banking license would open the door for Qonto to offer a wider range of services including loans, savings accounts, and investment products—making it a true bank in the eyes of regulators and customers alike.
Since its license is valid across the European Union, Qonto has expanded rapidly, now serving over 600,000 customers across multiple markets. Yet, without a credit institution license, their growth potential is somewhat limited. Their ambitious goal is to reach 2 million customers by 2030, but acquiring a banking license would be a significant step toward that target.
Expanding their offerings to compete more directly with traditional banks makes sense, but getting licensed and rolling out comprehensive financial products isn’t simple. That’s why some of Qonto’s competitors have taken different paths. For example, Memo Bank was founded as a bank from day one and already offers lending to SMBs. Finom operates with an electronic money institution (EMI) license and has just begun testing some lending services. Meanwhile, Revolut holds a full Lithuanian banking license and plans to expand credit options for businesses later this year.
The competitive landscape has been pushing Qonto to accelerate its plans. Recently, Revolut announced its intention to acquire a French banking license and establish Paris as its Western Europe headquarters, signaling the importance of local banking presence. CEO Alexandre Prot mentioned that Qonto’s push to obtain its license was partly driven by its profitability milestone in 2023, which came ahead of schedule.
Interestingly, Prot, the son of former BNP Paribas President Baudouin Prot, has long considered the idea of pursuing a full banking license. During a press briefing, he confirmed that he and co-founder Steve Anavi seriously thought about it but decided against it initially due to the lengthy process and the need for additional funding. With Qonto now profitable since 2023, the company feels more confident about taking this next step without the need for extra fundraising beyond the $552 million secured in 2022.
Over its eight years, Qonto has made strategic acquisitions, including its 2022 purchase of German challenger Penta and its 2024 acquisition of Regate, a financial automation platform. These moves reinforce Qonto’s positioning as more than just a banking service—they’re building an integrated financial management platform with invoicing and bookkeeping tools, catering especially to small and medium-sized businesses across Europe.
While Germany is now Qonto’s largest market after France, the company has also expanded into Spain, Italy, Austria, Belgium, the Netherlands, and Portugal. CEO Prot acknowledges that some customers prefer the security of a full banking license, especially for deposit guarantees and credit options. To meet this demand, Qonto launched its Pay Later service in 2024, which has already facilitated around €50 million (roughly $59 million) in financing. However, this service is limited by their current license, restricting loans to 12 months and only from their own equity.
To offer more diverse financing options, Qonto has partnered with fintech firms like Defacto, Karmen, Riverbank, and Silvr to create a “financing hub” for their customers. These collaborations are expected to continue for years, providing more tailored lending solutions beyond what Qonto can currently offer.
Gaining a full banking license would unlock new revenue streams—mainly from interest margins on loans and deposits. While CEO Prot declined to share specific revenue figures, he indicated that Qonto’s revenue grew by 30% last year. He also emphasized that this move is less about immediate profits and more about independence, faster product development, and stronger customer trust.
To support these ambitions, Qonto has invested in infrastructure, such as developing an in-house card processing system to improve acceptance rates and reduce reliance on third parties. With a team of 1,600 employees, the company aims to innovate further with AI-driven features like its “Qonto Intelligence” layer, while enhancing risk management and banking infrastructure in preparation for licensing.
The process of obtaining a full banking license in France could take several years, but it’s a key part of Qonto’s “growing up” journey. The company has also bolstered its leadership team with new senior hires, laying the groundwork for potential future milestones, including a possible IPO—though that remains a longer-term goal.
In summary, while Qonto isn’t a bank yet, its move to secure a banking license signals a strategic shift towards becoming a fully-fledged financial institution—one that could reshape the SME banking landscape across Europe.
