Qonto, a European neobank based in Paris, has distributed a report that claims digital banking options now top traditional banks in regard to adoption rates.
Launched in 2017 and focusing on SMEs, Qonto reports over 500,000 firms using its platform. Qonto is the commercial name of Olinda SAS which is regulated by the French Autorité de Contrôle Prudentiel et de Résolution (ACPR) as a payments institution. Qonto partners with banks like Credit Agricole and Credit Mutueal Arkea to offer certain services.
Qonto’s 2024 SME Barometer surveys 5,032 Small and Medium-sized Enterprises (SMEs) across five major European markets: France, Germany, Italy, Spain, and the United Kingdom. The report states that findings show “how European SMEs are adapting their business models, embracing digital transformation, and responding to environmental and social responsibilities.”
Key Findings include (as of September 2024):
- 74% of European SMEs have met or exceeded their targets in 2024; this is a decline from 2023, when 81% reported positive performance. France lags behind, with 35% of businesses falling below target.
- Inflation and lack of demand remain the top two challenges across all markets, each cited by 30% of respondents, followed by increased competition and cash flow difficulties
- Customer acquisition is the most pressing business need for 2025, identified as a priority for 31% of SMEs
- 37% of companies report positive effects from remote working policies, compared to just 9% who say they have a negative impact
- 49% of companies have already taken action to reduce their carbon footprint
- DEI: 75% of businesses are addressing at least one form of discriminatory bias, with gender parity (34%) being the most common focus area, followed by age diversity (32%) and cultural diversity (30%)
- 7% of surveyed companies already use AI tools, with larger companies (76%) and younger firms (75%) leading adoption. Germany shows the highest AI implementation rate at 78%, while the UK lags at 58%.
- Online business finance solutions are catching up with traditional banks as the preferred banking method for SMEs, with 31% using a hybrid approach.
Specifically, when reviewing the statement on banking, the report claims:
When it comes to managing daily business banking and finances, the data shows that more Small- and Medium-sized Enterprises use online solutions (31%) than traditional banks (29%). Around the same proportion of respondents (31%) say they rely on a combination of both online and traditional banking solutions.
Companies in Germany, the UK, and Spain are the biggest adopters of digital business banking solutions. France, of the five markets studied, was the most reliant on traditional banks (37% use traditional banks exclusively versus 26% for online alternatives).
The UK and Germany lead in digital banking adoption as the report shares data on the surveyed countries. According to the report:
France: 37% use high street (traditional) banks; 26% online banking
Germany: 20% use high street banks; 35% online banking
UK: 20% use high street banks; 35% online banking
Spain: 25% use high street banks; 33% online banking
Italy: 33% use high street banks; 24% online banking
A significant percentage of respondents use both digital and traditional banking as the migration to digital banking continues.
SMEs are said to largely be satisfied with their current banking partner with France holding the highest satisfaction at 86% and UK the lowest at 70%. Cost of service was the biggest complaint.