Qonto prepares for profitability
FACTS
- After a year of strong growth, the neo-bank reaffirms its strategic objectives and announces a profitability target for 2023.
- Qonto announces that it has passed the 120,000 customer mark and has set a target of capturing 500,000 customers by 2023, half of which will be in Europe.
- In one year, its revenues have doubled and the neo-bank recorded more than 20 billion transactions in 2020 (+100% compared to 2019).
- FinTech also plans to accelerate its internationalization plan. It is targeting three new countries: Germany, Spain and Italy. For these three countries, Qonto is betting on achieving local profitability by 2026.
CHALLENGES
- Facing the competition by anticipating its profitability to reassure investors: effervescence is the order of the day in the banking segment for professionals. Two neo-banks have already joined the ranks of banking players (Shine and Anytime) and new players are being created every day. The fundraising is going on, showing the confidence of investors. It is in this context that Qonto wished to reaffirm its objectives, but also to show that its model should rapidly bring profitability; a way also to reassure investors.
- Relying on new partnerships: Qonto's strategy is focused on deploying a variety of partnerships to enrich its offering through open banking, via its Qonto Connect platform. For example, Qonto has just integrated a connection with the online payroll software Payfit, allowing companies to initiate the payment of their salaries from Payfit. 2021 should see the arrival of new partners on the platform, enriching its business model as a business provider.
- FinTech also plans to recruit 150 new employees in 2021 to reach a total workforce of 450.
MARKET PERSPECTIVE
- Qonto is expected to enter the credit business this year, following the granting of a credit establishment license, which is currently under review.
- Competition is strong in the BtoB segment. Latest example to date with Sapheer. This new neo-bank dedicated to professionals was launched in January 2021. It also relies on partners to offer a complete range of services to professionals, combining current accounts and means of payment, financing, insurance and debt collection. It adds a whole range of services, including capital deposit. Sapheer is targeting 2,500 customers by the end of the year.
- Another newcomer : Blank, the neo-bank for the professionals of the Crédit Agricole Group. Announced in the middle of last year, it is operational these days.