Allica Bank seeks Swedish licence as UK fintechs turn to Europe

Allica Bank has lodged an application with the Swedish Financial Supervisory Authority (Finansinspektionen) to obtain a full banking licence, its first step beyond the United Kingdom. The move follows a $155 million funding round that pushed the lender’s valuation to just under $1.2 billion and secured its unicorn status.

Over the past twelve months the firm added roughly £1.3 billion in new loans, lifting its total portfolio to just over £3 billion, a 23 per cent increase. Pre‑tax profit rose to £36.9 million from £29.9 million a year earlier, underscoring the rapid growth that earned it the title of the UK’s fastest‑growing private company in the Times Hundred and Europe’s fastest‑growing start‑up according to Sifted.

"We would not take this step into Europe without the proven model we have built in the UK," said Richard Davies, chief executive of Allica Bank.

Why Europe now?

Allica’s decision mirrors a trend among UK fintechs that are re‑orienting towards neighbouring markets. Consumer‑payments platform Zilch bought Fjord Bank earlier this year, gaining a European licence that its founder Philip Belamant says will let the group “move really fast” across the continent. Likewise, neobank Monzo has halted its US push under chief executive Diana Layfield and set up offices in Barcelona and Madrid, using Spain as a launch pad.

What’s next for Allica?

If the Swedish regulator grants the licence, Allica will likely roll out its SME‑focused lending products to Swedish small‑business owners, replicating the model that turned a “barren wasteland” for SMEs five to ten years ago into a growth engine. Success could encourage other UK‑based fintechs to seek licences in the EU, bolstering the sector’s resilience after Brexit.

City minister Lucy Rigby welcomed the move, noting that the UK remains a fintech powerhouse and pledging support to keep the country an attractive base for innovative financial services firms.

For SMEs looking for new financing options, Allica’s European entry could broaden the pool of digital lenders, while investors will watch the licensing decision as a bellwether for the continent‑wide fintech expansion.