UK fintech Allica Bank has applied for a Swedish banking licence from Finansinspektionen, marking its first expansion outside the UK. The London‑based lender, valued at $1.2bn after raising $155mn this year, aims to challenge incumbent banks that have reduced lending to small businesses. Chief executive Richard Davies said Sweden will serve as an anchor market, with plans to later enter the Netherlands and Ireland.

A Swedish permit would also allow Allica to operate across the European Economic Area. Allica, launched in 2019, provides digital current accounts and loans to SMEs with 5‑250 employees and posted £37mn in statutory pre‑tax profit last year. Davies, a former COO of Revolut and leader at OakNorth, argues the US market is too branch‑centric and fragmented, making northern Europe a better fit for Allica’s branchless, data‑driven model.

The move reflects a broader trend of UK fintechs seeking growth abroad as domestic markets mature.