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Why Qonto's Business Model is so successful?

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Qonto’s Company Overview


Qonto is a leading neobank for SMEs and freelancers headquartered in Paris, France. Founded in 2016 by Alexandre Prot and Steve Anavi, Qonto aims to simplify banking and make financial management a seamless experience for businesses. Qonto provides a 100% digital banking solution that combines efficiency, simplicity, and transparency. The company offers a range of services including business accounts, corporate cards, expense management, and accounting tools. Qonto has successfully established its presence in several European countries such as France, Italy, Spain, and Germany, serving over 150,000 companies. The company is dedicated to creating a banking experience that is adapted to the needs of modern businesses, making it a go-to financial solution for startups, SMEs, and freelancers. Business Model: Qonto operates on a subscription-based business model. It offers different plans tailored to the needs of various businesses, from freelancers to established SMEs. The plans vary in terms of pricing and features, allowing businesses to choose a package that best suits their needs. Each plan includes a set of services such as bank transfers, direct debits, card payments, and access to accounting tools. Qonto also offers additional services like extra corporate cards, international transfers, and higher transfer limits for an additional fee. This flexibility allows Qonto to cater to a wide range of businesses, from small startups to larger organizations. Revenue Model: Qonto's primary source of revenue is the subscription fees paid by its customers. The company offers several subscription plans, each with a monthly or annual fee. The cost of these plans varies depending on the features and services included. In addition to subscription fees, Qonto also generates revenue from transaction fees for certain services such as international transfers and cash withdrawals. Moreover, Qonto offers premium services like advanced expense management and accounting solutions, which provide another stream of revenue. The company's diversified revenue model ensures a steady flow of income while offering flexibility and a wide range of services to its customers.

https://qonto.com/en

Country: France

Foundations date: 2016

Type: Private

Sector: Financials

Categories: Financial Services


Qonto’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access

Functional: saves time, simplifies, organizes, integrates, reduces effort, reduces cost, informs


Qonto’s Related Competitors



Qonto’s Business Operations


Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Customer data:

It primarily offers free services to users, stores their personal information, and acts as a platform for users to interact with one another. Additional value is generated by gathering and processing consumer data in advantageous ways for internal use or transfer to interested third parties. Revenue is produced by either directly selling the data to outsiders or by leveraging it for internal reasons, such as increasing the efficacy of advertising. Thus, innovative, sustainable Big Data business models are as prevalent and desired as they are elusive (i.e., data is the new oil).

Digital:

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Freemium:

Freemium is the sum of the words free and premium and refers to a business strategy that provides both free and premium services. The freemium business model works by providing essential services for free and charging for enhanced or extra capabilities. This is a typical practice among many software firms, who offer imperative software for free with restricted functionality, and it is also a popular approach among game developers. While everyone is invited to play the game for free, extra lives and unique game features are accessible only once the player buys.

Disruptive banking:

The banking industry's disruptors are changing the norms that have been in place for decades. These new regulations, however, will only be effective until the next round of disruption occurs. Banks and credit unions must thus be nimble and responsive. We need audacious tactics. 'Disruptive Innovation' is a term that refers to the process whereby a product or service establishes a foothold at the bottom of a market and then persistently climbs up the value chain, ultimately replacing existing rivals.

Software as a Service (SaaS):

Software as a Service (SaaS) is a paradigm for licensing and delivering subscription-based and centrally hosted software. Occasionally, the term on-demand software is used. SaaS is usually accessible through a web browser via a thin client. SaaS has established itself as the de facto delivery mechanism for a large number of commercial apps. SaaS has been integrated into virtually every major enterprise Software company's strategy.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Innovative retail banking model:

The design has no resemblance to a bank but more to a coffee shop. There is free wifi and a large number of iPads accessible for internet use. Automated teller machines (ATMs) are located around the perimeter of the coffee shop, allowing customers to conduct financial transactions. The workforce consists of a mix of coffee shop patrons and banking personnel who circulate and make themselves accessible. If you need services not available through an ATM, fully trained bank personnel can offer all services typically available at a conventional bank branch.

Subscription:

Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Easy and low-cost money transfer and payment:

This business model makes money transfers and producing and collecting prices more affordable and accessible to consumers. Sending and receiving the money to pay wages, settle business transactions, paying school fees, or supporting family members is typical for companies and people alike. It necessitates fast, dependable, and cheap money transfer services that enable money to be placed in one location and withdrawn in another in urban and rural regions alike.

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