Allica Bank applies for banking licence in Sweden 

Allica Bank has applied for a banking licence in Sweden in a step that would mark its first expansion outside the UK. 

The company said it has applied to Finansinspektionen, Sweden’s financial regulator. 

As part of the process, Allica has established a legal entity in Sweden and appointed a local leadership team for the planned business. 

Rickard Westlund is set to head the Sweden operation, alongside Javier Ubillos as chief technology officer (CTO), Victor Ramstrom as chief product & operating officer, and Samuel Tawadros as CFO.  

The bank is recruiting for additional product, technology and operational positions. 

The move comes after Allica completed a $155m Series D funding round in February, which valued the lender at nearly $1.2bn.  

The bank had said the funding would back its next phase of development, including its first move beyond the UK market. 

A Swedish banking licence would also give Allica the ability, over time, to provide services in other European Union markets. 

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. We are excited by the opportunity to bring our model to Sweden, subject to regulatory approval.” 

The bank said Sweden was chosen as its first potential international market because of the size of its established business lending sector, the concentration of market share among incumbent lenders, its digital economy and the standing of its regulator. 

Allica received its UK banking licence in 2019.  

Since then, it has provided more than £4bn ($5.4bn) in lending to established UK businesses, while over 15,000 business customers use its current account. 

The Swedish application is still subject to assessment and approval by Finansinspektionen.