AI-powered lender Qred wins banking license in Sweden

By Gloria Methri

Swedish credit-scoring platform Qred is set to become Europe’s newest bank, having received a full banking license from the country’s financial regulator. The company applied for a license in October 2022 and the application was approved by the Swedish Financial Supervisory Authority (SFSA) in seven months.

Founded in 2015 by entrepreneurs for entrepreneurs, Qred is one of Sweden’s fastest-growing FinTech companies, according to the Financial Times. Using its proprietary AI-powered financing platform, Qred has issued over 100,000 loans to small businesses in the Nordics and Benelux region. This has enabled Qred’s customers to create over 30,000 new jobs since 2015.

“The bank license marks another major milestone as we are getting closer to the dream we had when Qred was started eight years ago. I am very satisfied that the application process has been so efficient and smooth. As a bank we can further accelerate a European rollout of our services, as markets that require a bank license are now unlocked,” said Emil Sunvisson, CEO at Qred.

Securing a bank license enables Qred to roll out its services across the European Union, and to offer savings accounts with competitive interest rates. As a result, the company’s funding costs will be reduced compared to the current funding structure, facilitating better terms to customers.

“Becoming a bank is a part of the plan shaped together with Nordic Capital. We will now continue our fast and profitable growth as we challenge the traditional banks with easier and smarter products to power small businesses across Europe”, added Sunvisson.

With operations in Sweden, Finland, Denmark, the Netherlands, Brazil, Belgium, and Norway, Qred claims to have helped more than 25,000 companies. The company’s fully automated, proprietary credit scoring system allows it to provide business owners with the power they need to grow.

The law firm Hammarskiöld & Co has assisted Qred in the licensing process.