The fast-growing digital business bank confirmed it has made an application for authorisation to the Finansinspektionen, the Swedish Financial Supervisory Authority, as part of the move it has already set up a new legal entity in Sweden and is building a team to develop its Swedish business.

It includes a blend of banking and technology experience, including Rickard Westlund, who will lead the Allica team in Sweden, Javier Ubillos (chief technology officer), Victor Ramstrom (chief product and operating officer) and Samuel Tawadros (chief financial officer). Further executives have been hired and will join the Swedish team in the next two months.

It comes after the bank’s $155m Series D funding round in February, which valued the bank at close to $1.2 billion. Allica said at the time that the investment would support its next stage of growth, including its first expansion outside the UK. If Allica is successful in securing its banking licence in Sweden, it would also allow Allica to offer its services across other European Union (EU) markets in the longer term.

The bank revealed it selected Sweden due to its established business lending market, high market share concentration in the incumbent banks, highly digital economy, and well-respected regulator.

The bank believes established Swedish businesses face many of the same banking challenges as their counterparts in the UK.  Allica has already lent more than £4 billion to businesses across England, Scotland, Wales and Northern Ireland, with more than 15,000 of them using its current account.

Allica Bank’s chief executive Richard Davies said: “[Sweden’s] established businesses face many of the same challenges we have seen in the UK, where firms that make a major contribution to the economy have too often been underserved by traditional banks.

“We would not be taking this step without the proven model we have built in the UK. Allica has grown by delivering on its promises to established businesses, with a full stack product offering and combining market-leading technology with the expertise and service these businesses need.”