Allica Bank has applied for a banking licence in Sweden as it prepares to enter its first market outside the UK.
The digital business bank has submitted its application to Finansinspektionen, the Swedish Financial Supervisory Authority, and established a Swedish legal entity.
Allica has also appointed an executive team to develop its Swedish operation, led by Rickard Westlund. Other appointments include Javier Ubillos as chief technology officer, Victor Ramstrom as chief product and operating officer, and Samuel Tawadros as chief financial officer.
The bank is recruiting for further product, technology and operational roles.
The move follows Allica’s $155 million Series D funding round in February, which valued the bank at close to $1.2 billion. The company said the investment would support further growth and its first expansion outside the UK.
If the Swedish banking licence is granted, it could provide Allica with a platform from which to offer services in other European Union markets over the longer term.
Allica said it selected Sweden because of its established business lending market, digitally developed economy and concentrated banking sector. It believes established Swedish businesses face similar banking challenges to those experienced by companies in the UK.
The bank, which secured its UK banking licence in 2019, focuses on established businesses employing between five and 250 people. It has lent more than £4 billion to UK businesses, while more than 15,000 companies use its current account.
Allica Bank chief executive Richard Davies (pictured) says: “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 says: “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 said it would provide further details about its Swedish plans if authorisation is granted.
