French fintech firm Qonto has submitted an application for a banking license in France, according to CEO Alexandre Prot.

This move could allow the company to expand its financial services to include lending, savings, and investment options.

Since 2018, Qonto has operated under a payment institution license, limiting its ability to provide credit services.

The new banking license would enable the company to offer a wider range of financial products and grow its customer base.

Its target is to reach 2 million users by 2030, up from the current 600,000 across Europe.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ European fintech licensing is becoming a competitive advantage

Qonto’s move for a full banking license comes amid a significant shift in European fintech regulation, with several major new frameworks set to reshape the industry in 2025.

The upcoming Payment Services Directive 3 (PSD3) and Payment Services Regulation (PSR) will establish more stringent requirements for all financial service providers, creating a more complex compliance landscape 1.

This regulatory evolution reflects a global trend of modernizing banking frameworks to accommodate innovation 2.

Qonto’s timing appears strategic, as obtaining a license before these new regulations take effect could provide a significant competitive edge and prevent potential market disruption during a crucial growth phase.

Companies that secure full banking licenses prior to the implementation of these regulations may face a smoother transition period compared to competitors still operating under more limited licenses.

2️⃣ B2B fintech competition is intensifying in Western Europe

Qonto’s banking license application comes as multiple players are jockeying for position in the European SMB banking sector, with Paris emerging as a key battleground.

Revolut has specifically announced plans to seek a French license and establish Paris as its Western European headquarters, directly challenging Qonto in its home market 3.