Allica Bank applies for Swedish banking licence in expansion to Europe
Allica Bank, the fast-growing digital business bank, has submitted an application for a banking licence in Sweden, marking the first planned expansion of its operations outside the UK.
The fintech has confirmed it has made an application for authorisation to the Finansinspektionen, the Swedish Financial Supervisory Authority. Allica has said it has already set up a legal entity in Sweden as part of the process, and hired an executive team to develop its Swedish business. This includes a blend of banking and technology experience, including Rickard Westlund, who will lead the Allica team in Sweden, Javier Ubillos (CTO), Victor Ramstrom (chief product & operating officer) and Samuel Tawadros(CFO). Allica is currently in the process of hiring a range of further product, technology and operational roles.
The announcement follows Allica’s $155m Series D funding round in February, which valued the bank at close to $1.2bn. Allica said at the time that the investment would support its next stage of growth, including its first expansion outside the UK.
If Allica is successful in securing its banking licence in Sweden, it would also allow Allica to offer its services across other European Union (EU) markets in the longer term.
Allica says it selected Sweden as its first prospective international market because of its significant established business lending market, high market share concentration in the incumbent banks, highly digital economy, and well-respected regulator. The bank believes established businesses in Sweden face many of the same banking challenges as their counterparts in the UK.
Allica has grown fast since securing its banking licence in 2019. It has differentiated itself in the competitive UK fintech market by focusing specifically on ‘established businesses’ with between 5 and 250 employees – a segment that generates a third of the UK’s GDP but has historically been underserved by existing high-street banks and digital challengers. It has already lent over £4bn to established UK businesses, with over 15,000 of them using its current account.
Allica Bank’s CEO Richard Davies said, “Sweden has one of Europe’s most digital economies, with a well-respected regulator, making it a natural choice for Allica’s first expansion outside the UK. Its established businesses face many of the same challenges we have seen in the UK, where firms that make a major contribution to the economy have too often been underserved by traditional banks.
“We would not be taking this step without the proven model we have built in the UK. Allica has grown by delivering on its promises to established businesses, with a full stack product offering and combining market-leading technology with the expertise and service these businesses need. We are excited by the opportunity to bring our model to Sweden, subject to regulatory approval.”
Economic secretary to the treasury, Lucy Rigby, said: “It’s brilliant to see Allica building on their success here in the UK and expanding into other European markets.
“The UK is a fintech powerhouse, and I’m fully committed to ensuring it remains a jurisdiction where the world’s most innovative financial services firms choose to start, scale and stay.”
Allica’s application remains subject to review and approval by Finansinspektionen. The bank will provide further details about its plans for Sweden if and when authorisation is granted.