French Fintech Qonto Seeks Banking License to Expand Services and Reach 2 Million Clients by 2030

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French fintech company Qonto has applied for a banking license from France’s banking regulator, aiming to broaden its offerings beyond payment services to include lending, savings, and investment products. Founded in July 2017, Qonto currently serves over 600,000 small and medium-sized business customers across eight European markets such as France, Germany, Italy, and Spain.

Operating under a payment institution license, Qonto provides digital banking and financial management tools including invoicing, accounting, card payments, and wire transfers. The company’s goal is to grow its client base to 2 million by 2030.

Qonto has raised over 600 million euros ($705 million) from venture capital and angel investors. The firm has also strengthened its board with banking experts like former UniCredit CEO Jean-Pierre Mustier, who now serves as an independent board member.

A banking license would allow Qonto to develop partnerships and offer its pay-later services with greater autonomy, according to CEO and co-founder Alexandre Prot. This move comes as digital payments continue to grow in Europe, although at a slower pace, with cards still dominating payment values and mobile apps gaining traction.

Microsoft to Cut Around 4% of Workforce Amid Heavy AI Investment Costs

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Microsoft announced it will lay off nearly 4% of its global workforce as part of efforts to control costs while investing heavily in artificial intelligence infrastructure. The company, with about 228,000 employees as of June 2024, had already begun layoffs in May affecting around 6,000 workers, primarily in sales roles.

The tech giant has pledged $80 billion in capital spending for fiscal year 2025, but the soaring costs of expanding AI capabilities have pressured profit margins. Microsoft’s cloud margin for the June quarter is expected to decline compared to the previous year.

In addition to workforce reductions, Microsoft plans to simplify its organizational structure by reducing management layers and streamlining products, processes, and roles. The gaming division, including its Barcelona-based King unit known for Candy Crush, will also see job cuts of about 10%, or roughly 200 employees.

Microsoft’s layoffs follow a broader trend among Big Tech companies investing in AI, with peers like Meta trimming about 5% of its lowest performers, Alphabet cutting hundreds of jobs, and Amazon reducing staff across various segments amid economic uncertainties and rising operational costs.

Google Proposes New Search Changes to Avoid EU Antitrust Fine

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Google has submitted a new proposal aimed at addressing complaints from rivals and avoiding a possible European Union antitrust fine, Reuters has learned from a confidential document. This comes ahead of a critical July 7-8 meeting in Brussels with the European Commission and competitors.

The proposal, referred to as “Option B,” offers an alternative to an earlier plan presented last week. It suggests displaying two boxes on Google’s search results page: a vertical search service (VSS) box featuring links to specialized search engines for hotels, airlines, restaurants, and transport, and below it, a separate box listing free links to individual suppliers in those categories. Google would manage the supplier information but the setup aims to avoid the VSS box being dominated by Google’s own services.

This proposal seeks to comply with the EU’s Digital Markets Act (DMA), which targets large tech companies to prevent unfair self-preferencing and foster competition. Google has already made hundreds of product changes under the DMA framework.

Despite the efforts, Google remains concerned that some DMA requirements could degrade online user experience in Europe. If found in violation of the DMA, Google could face fines up to 10% of its global annual revenue.