Bricknode, a SaaS company in the financial services industry, has secured a loan of SEK 5 million (around $467,000) for supporting its initiative for establishing a licensed brokerage subsidiary.
Announced on Monday, the loan has been secured for a one-year term at a monthly interest rate of 1.5 percent. The proceeds will be utilized for several requirements for the brokerage establishment, including the necessary regulatory and operational capital.
Bricknode is known for offering cloud -based solutions to financial brokerage businesses. It revealed its plan to apply for a securities brokerage license with a wholly-owned subsidiary last May.
Though the company did not reveal the regulator from which it is seeking the brokerage license, it highlighted that it would be within the European Union.
The services are being launched when the demand for investment and trading skyrocketed with the social impacts of Covid-induced lockdowns. According to the European Fund and Asset Management Association, assets under management in Europe touched EUR 28.4 trillion in 2020, with projections of growing to EUR 31.3 trillion in 2021, based on the actual figures from three quarters of the year.
All-in-One Solution
With roll-out plans for the first quarter of 2023, the platform would allow the company to offer brokerage services to customers lacking regulatory permissions. It would also allow Bricknode to offer an all-in-one solution to companies launching investment services. It already offers Bricknode Broker, which is its core brokerage software and technology platform.
“Investing is a big market right now and firms seeking to capitalize typically face lengthy development projects and regulatory challenges,” said the Founder and CEO of Bricknode, Stefan Willebrand.
“By applying for a brokerage license, we’re moving a step closer to being able to offer our own regulatory umbrella to clients and making it even easier for them to launch investment solutions.”
