Qonto The Profitability Challenge

🥁 Introducing the latest addition to our series of Deep-Dive reports:
 
Qonto: The profitability challenge 
 
If you have been following our work for some time, you are familiar with our deep-dives and our analyses in not only specific neo-banks and FinTechs, but also in the industry and different ways to approach what is happening in the world today.
 
Qonto, formerly known as Finpal, was launched in France in 2017 with an international focus from day one. Just two years after its French launch, it expanded into three other markets, Spain, Germany and Italy, and in honor of its fifth anniversary, it bought German rival Penta. 
 
In its early days, Qonto launched its solution by using Treezor's e-money license instead of going through the time-consuming procedure of applying for a banking license. This approach gave the start-up more time to concentrate on how to quickly scale, raise client awareness and cement the lead in the business banking segment, as the dominant neo-bank for freelancers and SMEs in Europe.
 
It was expected that Qonto would enter the credit business last year, following the application of a credit establishment license, which could see Qonto extending its revenue streams into more profitable products, such as lending. However, the project is now set aside in favor of the development of new services via partnerships. 
 
In the future, Qonto will continue to provide new features through partnerships, with a special focus on enriching its lending ecosystem already present with October and Edebex. Initiatives  that may enable Qonto to create new revenue streams and entice larger companies as clients.
 
Qonto’s ambition is to become the finance solution of choice for one million European SMEs and freelancers by 2025, which aligns with its historical key performance indicators (KPIs), where Qonto has found huge success across Europe, so far. However, now with 300K+ customers on board, it might be time for Qonto to focus on profitability.
 

 
C-Innovation Research
 
The team at C-Innovation has exclusively sifted through Qonto’s latest financial statements, Qonto’s blog entries, press releases, French and international media commentary from reputable sources such as Forbes, Business Insider, and the Financial Times, in order to provide a 50+ slide report which reveals Qonto’s success factors, current challenges and what the future prospects look like for the company. Subscribers can also access the raw data of our analysis. 
 
This report is aimed at FinTech businesses, enthusiasts and corporate banks looking for actionable takeaways which address current issues in the digital space. It provides insights on how to adapt to continue to survive and evolve by having a real example, a successful neo-bank. And we tell you all you need to know. 
 
Report Contents
 
Background of the company 🔦
Company Overview
Qonto’s Timeline
Approach to Banking
Unique Selling Proposition
Leadership Team
Investors and Funding
Qonto’s Ledger  
 
Growth Strategy 📈
Qonto’s Market Entry Strategy
Treezor’s Partnership
Qonto’s Core Banking System
Customer Growth Strategy 
Growth and Marketing Approach
Product Stack (French Market)
Partnerships & affiliated program
Core Offering shift
New and Improved Branding
Customer Service
International Approach
Funding, customer growth and Valuation
 
Business Model 👔
Value Proposition Overview
Revenue Model
 
Financial Metrics 💸
Annual Report 2020
Key Performance Indicators 
Main Sources of Income
Evolution of Customer Deposits
Qonto Unit Economics (£)
 
Competitors 🏁
The Competitive Landscape
Valuation Benchmark
App Score comparison
Banking M&A
Penta Acquisition
Lunar, Bunq, Qonto Case Study
Penta Company Overview
Ageras Group – Case Study
Aprila Bank – Case Study
European SME Banking Landscape
Qonto Offering Vs Traditional Banks
Qonto Offering Vs Digital Banks
 
Future Perspectives🔮 
Digital Banking is the Future
Profitability becomes critical
Strengthening leadership in Europe
 
Key Takeaways 🚀
 
Not completely convinced yet? Have a look at what you will have access to from C-Innovation to you…
 
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🔨 We have done all the hard work (sifting through financial statements and long press releases) and synthesised this information so that it is as easy to read, digest and apply as possible!
🏝️ Themes and key points are stand-alone, so if you need information quickly it can be easily identified and understood independently from previous slides.
🏠 Our experienced analysts are in-house, so if you have any additional questions we are just an e-mail away.
👃 Our opinions are objective and unbiased - we are not affiliated with any companies featured in this report and simply enjoy sticking our noses into their business model…!