Swedish-based AI-powered fintech company Qred recently obtained its banking license in May. This status now gives them the power to expand their services across the European markets, allowing them to offer competitive interest rates on savings accounts. They applied for a license in the year 2022, which took only seven months to be approved by the Swedish Financial Supervisory Authority (SFSA). Qred has received support from Hammarskiöld & Co. in the license application procedure.
Motives behind Obtaining a Banking License
A bank license makes it possible for Qred to unlock its services, expand, and enter the European market. They will be able to provide savings accounts with attractive interest rates. Compared to the present financial system, Qred’s funding costs will be lower, enabling better customer conditions. Since its launch in 2015, Qred has provided over 100,000 loans to small businesses in the Nordic and Benelux regions, enabling its clients to create over 30,000 new job opportunities.
Emil Sunvisson, Qred’s CEO, says he is proud to have achieved another significant milestone after receiving the bank license. He had started Qred eight years ago, which soon became a reality. He was also immensely satisfied with the overall smooth application procedure that the law firm Hammarskiöld & Co had assisted him with. As an official bank, they can now roll out their services throughout Europe.
Qred’s Future Banking Plans
Emil further says that they had partnered with private equity funds company Nordic Capital to become a fully-fledged bank. They will keep expanding quickly and profitably as they compete with traditional banks. They will develop simpler and more intelligent products to support small European businesses.
An Overview of Qred’s Operations
Qred was created in 2015 by Emil Sunvisson and Jason Francis. Its headquarters are in the capital city of Sweden, Stockholm. It’s also in Finland, Denmark, Netherlands, Belgium, Norway, and Brazil. Their mission is to offer easy and flexible financing solutions for small scaled businesses. They have appeared on the list of Europe’s 1,000 fastest-growing firms for the last four years.
A Snapshot of the Current Banking Scenario in Europe
Significant worldwide market tensions resulted in the bankruptcy of two mid-sized banks in the United States and a lack of trust in Credit Suisse. Due to that, there was a sharp decline in the stock prices of Eurozone banks and riskier bank bonds, especially in the Additional Tier 1 section.
According to recent data by Deloitte, the inflation rate of the 20-member Eurozone has not slowed down yet. Results of April state that this inflation will continue to increase rapidly. If this continues, the European Central Bank (ECB) will be forced to tighten its monetary policies to break this cycle.