Key facts
- Allica Bank has applied for a banking license in Sweden.
- The fintech unicorn secured $155 million in funding, valuing it at nearly $1.2 billion.
- Allica's loanbook increased by 23% to over £3 billion in the last year.
- The bank's CEO, Richard Davies, highlighted a strategic focus on the SME market.
- Other UK fintechs are also shifting focus to European markets.
UK fintech Allica Bank is making strategic moves to expand into the European market, initiating its first international venture by applying for a banking license in Sweden. This development follows the bank's recent achievement of unicorn status after securing a $155 million funding round, which valued the company at close to $1.2 billion.
Over the past year, Allica Bank has experienced significant growth, with its loanbook expanding by approximately £1.3 billion in fresh originations, leading to a 23% increase in its total portfolio value, now exceeding £3 billion. The bank's chief executive, Richard Davies, has previously emphasized the firm's strategic focus on the small and medium-sized enterprise (SME) market, which he described as underserved.
Allica's expansion into Europe aligns with a broader trend among UK fintech firms. Many are turning their attention to markets closer to home after shelving plans for US expansion. For instance, consumer payments platform Zilch acquired Fjord Bank to gain a European banking license, enabling a rapid rollout. Similarly, neobank Monzo has shifted its focus to Europe, establishing operations in Spain with over 50 employees to serve as a launchpad for its European strategy.
City minister Lucy Rigby commented on the UK's position as a "fintech powerhouse" and expressed commitment to fostering an environment where innovative financial firms can thrive. Allica's move is underpinned by its established success in the UK, with Davies stating the bank would not proceed without a proven domestic model.