Allica Bank seeks Swedish banking licence
London-based digital bank Allica is setting its sights on Europe, applying for a banking license with Sweden’s Financial Supervisory Authority. The bank, which has been operating in the UK since 2019, sees Sweden’s robust business lending market and highly digital economy as an attractive opportunity for expansion.
Allica’s Swedish Push
Allica’s application to the Swedish Financial Supervisory Authority, Finansinspektionen, was announced this week. The authority is currently reviewing the application, with a decision expected in the coming months. Allica has set up a new legal entity in Sweden, led by Rickard Westlund as its CEO. Westlund brings extensive business banking experience, having previously headed European debt collection company Lindorff Capital and small business lender Aros Kapital. This appointment is a strategic move by Allica to leverage Westlund’s local market knowledge and expertise to handle the Swedish banking setting.
Westlund will be joined by a team consisting of CTO Javier Ubillos, CFO Samuel Tawadros, and chief product and operating officer Victor Ramström. Ubillos, with his background in technology, will help drive Allica’s digital-first strategy in Sweden. Tawadros, as CFO, will oversee the financial operations of the new entity, while Ramström will play a key role in product development and operational planning.
Allica is also actively recruiting for additional product, technology, and operational roles. This expansion will not only lead to new job opportunities in Sweden but also contribute to the local talent pool in the fintech sector.
Funding and EU Ambitions
Allica’s expansion comes on the heels of a successful $155 million Series D funding round in February. The funding, which valued the bank at $1.2 billion, will be used to extend operations beyond the UK. The capital raised comprises common equity and Tier 1 equity capital, providing Allica with a strong financial foundation for its European expansion.
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The funding round was led by Ventura Capital, with participation from GLG, Sona AM, TCV, and Blue Owl. These investors, with their diverse backgrounds and expertise, will provide strategic guidance and support as Allica handles the European market.
If Allica’s Swedish license bid is successful, it could also allow the bank to offer its services across other European Union (EU) markets in the future. Sweden’s position within the EU and its single market access will enable Allica to explore opportunities for further expansion, subject to regulatory approvals. This strategy aligns with Allica’s long-term vision to become a significant player in the European digital banking setting.
Allica has been growing steadily in the UK, lending over £4 billion to established businesses and serving more than 15,000 current account users. The bank has a growth trajectory that it aims to replicate in Sweden. The growth into Sweden will be driven by Allica’s innovative digital banking model, tailored to the needs of businesses.
Allica’s expansion into Sweden is a sign of the bank’s ambition and confidence in its business model. By leveraging its successful track record in the UK, a strong team led by Westlund, and substantial funding, Allica is well-positioned to make a significant impact on the Swedish business banking market and beyond.
