French fintech startup Qonto has officially filed for a banking license in France, as announced by CEO Alexandre Prot, aiming to broaden its services beyond its current payment institution license.

This move aligns with Prot's earlier statements on the Sifted Podcast, where he indicated that the company would pursue a banking license within the year.

As a business banking unicorn valued at €4.4 billion, Qonto has raised over €600 million from notable investors like DST Global and Tiger Global, and currently serves 600,000 customers across eight European countries.

The company's profitability in 2023 has positioned it well to pursue this credit institution license without the need for additional funding beyond the $552 million raised in 2022.

Previously, high capital requirements hindered attempts to establish a banking subsidiary, but Qonto's current profitability enables it to generate the necessary regulatory capital.

Despite its success, the absence of a credit institution license may deter some customers seeking deposit guarantees and credit options, even as its Pay Later service facilitated €50 million in financing in 2024.

With profitability achieved, Qonto is set to compete with other players in the SME banking market, such as Revolut and Pennylane.

The company has made strategic acquisitions, including the German competitor Penta and the French platform Regate, to enhance its geographical reach and product offerings.

Acquiring a banking license would enable Qonto to offer higher-value loans and additional savings and investment products, which are essential for achieving its goal of reaching 2 million customers by 2030.

To strengthen its banking license application, Qonto has appointed a reinforced board of directors, featuring notable figures like Jean-Pierre Mustier and Françoise Brougher, to enhance its financial expertise.

Prot emphasized that obtaining the banking license is a significant step in Qonto's development, addressing customer demand and market opportunities, although the process could take several years.

While an IPO is a possibility for the future, Prot has indicated that there are currently no immediate plans to pursue it.