Allica Bank has applied for a banking licence in Sweden as the UK digital business lender prepares for its first expansion outside Britain and considers a longer-term move into other European markets.
The bank said on Monday that it had submitted an application to Finansinspektionen, Sweden’s Financial Supervisory Authority. It has also established a legal entity in the country as part of the licensing process.
Allica has already appointed a management team for the proposed Swedish operation. Rickard Westlund will lead the business, supported by Javier Ubillos as chief technology officer, Victor Ramstrom as chief product and operating officer, and Samuel Tawadros as chief financial officer. The bank is also recruiting for additional technology, product and operational positions.
The move follows a $155 million Series D funding round completed by Allica in February, which valued the business at almost $1.2 billion. The funding was intended to support further growth in Britain and the bank’s first international expansion.
If approved, the Swedish banking licence could eventually allow Allica to use the country as a base for entering other European Union markets.
Sweden chosen as first overseas market
Allica said Sweden was selected because of its sizeable business lending market, concentration of banking among established providers, highly digital economy and strong regulatory environment.
The bank believes established Swedish businesses face challenges similar to those experienced by companies in the UK, particularly when dealing with traditional banks.
Allica chief executive Richard Davies said Sweden’s digital economy and regulatory system made it a suitable location for the bank’s first overseas operation. He said the company wanted to bring its UK model to Swedish businesses, subject to regulatory approval.
Allica has focused on companies employing between five and 250 people since receiving its UK banking licence in 2019. The bank says this segment accounts for about a third of UK GDP but has historically received limited attention from major banks and digital challengers.
The lender has now provided more than £4 billion in financing to established UK businesses, while more than 15,000 companies use its current account.
Its domestic expansion has included an increasing focus on working capital finance. The bank also acquired SME lending fintech Kriya as part of its efforts to broaden its services.
The Swedish application marks a significant step for Allica as it seeks to build on its growth in Britain. However, the plans remain subject to approval by Finansinspektionen.
Lucy Rigby, the Economic Secretary to the Treasury, welcomed the move, saying Allica’s expansion showed the strength of Britain’s fintech sector.
Allica said it will provide further details about its Swedish business if regulatory approval is granted.
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