UK fintech Allica Bank looks to crack European market

Allica Bank, a rapidly expanding UK fintech unicorn, is preparing to venture into the European market. The business lender has applied for a banking license in Sweden, marking its first step into a new market outside of its home country. This move follows a $155 million funding round earlier this year, which propelled Allica to a valuation of "close to $1.2 billion". The bank's loanbook has grown by £1.3 billion over the past year, bringing its total portfolio to just over £3 billion.

Allica's CEO, Richard Davies, previously described the SME market as "barren wasteland" five to ten years ago, but emphasized that the strategic focus on this area was crucial to the company's growth. The firm has been recognized as the UK's fastest-growing private company by The Times Hundred and Europe's fastest-growing startup by Sifted. In the last year, Allica recorded a 23% increase in pre-tax profit, reaching £36.9 million, up from £29.9 million in 2024.

The trend of UK fintechs expanding into Europe is evident, as other major firms have redirected their growth plans from the US to European markets. Consumer payments platform Zilch acquired Fjord Bank in January, securing a European banking license and enabling a swift rollout across Europe. Similarly, neobank Monzo has shifted its focus to Europe, setting up offices in Barcelona and Madrid to serve as a launchpad for further expansion.

Allica's CEO, Richard Davies, stated that the bank would not proceed with its European expansion "without the proven model" in the UK. UK City Minister Lucy Rigby expressed her commitment to maintaining the UK's position as a fintech powerhouse, emphasizing the country's role as a preferred location for innovative financial services firms to start, scale, and stay.