Allica Bank targets Europe with Swedish licence bid

Allica Bank has applied for a banking licence in Sweden as the UK digital business bank prepares for its first international expansion.

The bank has submitted its application to Finansinspektionen, the Swedish Financial Supervisory Authority, and has established a Swedish legal entity and recruited an executive team to develop the business.

Rickard Westlund will lead Allica’s Swedish operation, alongside Javier Ubillos as CTO, Victor Ramstrom as Chief Product & Operating Officer and Samuel Tawadros as CFO. Further recruitment across product, technology and operational roles is underway.

The move follows Allica’s $155 million Series D funding round in February, which valued the bank at close to $1.2 billion. The investment was intended to support the next stage of the bank’s growth, including expansion beyond the UK.

Subject to regulatory approval, Sweden could also provide a platform for Allica to expand into other EU markets over the longer term.

Allica said it selected Sweden because of the size of its established business lending market, the concentration of market share among incumbent banks, its highly digital economy and regulatory environment. It believes established Swedish businesses face similar banking challenges to those it has targeted in the UK.

Since securing its UK banking licence in 2019, Allica has focused on established businesses employing between five and 250 people. It has now lent more than £4 billion to UK businesses, while more than 15,000 use its current account.

Allica Bank 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.”

Economic Secretary to the Treasury Lucy Rigby welcomed the move, describing Allica’s expansion as an example of a UK fintech building on its domestic success in international markets.

Allica’s application remains subject to review and approval by Finansinspektionen, with further details of its Swedish plans expected if authorisation is granted.