Backnode has announced that it recently secured a loan of SEK 5 million ($467,000) to support its initiative on setting up a licensed brokerage subsidiary. The SaaS company announced the development on Monday and stated that the loan has been secured for a one-year term, at a monthly interest of 1.5%.

Clients Can Easily Launch Their Investment Solutions

Chief Executive Officer of Bricknode, Stefan Willebrand, stated that many companies looking to capitalize on the growing investment market generally face regulatory challenges and lengthy development projects. He noted that Bricknode’s case is no different. The company is applying for a brokerage license to enable the firm to provide its regulatory umbrella to clients, making it easier for them to launch their investment solutions.

The firm added that the proceeds will be used for several requirements for the brokerage setup, which will include the necessary operational and regulatory capital. Bricknode offers cloud-based solutions for financial brokerage firms. The company stated that it will be applying for a securities brokerage license with a wholly-owned subsidiary. While the firm didn’t mention exactly the regulator it wants to get the license from, it did reveal that the license will be within the European Union.

The Increasing Demand For Investment And Trading Products

Bricknode will be launching the new service when the demand for trading and investment has surged following the social impact of the covid-19 lockdown.

Assets under management in Europe hit EUR 28.4 trillion in 2020, according to the European Fund and Asset Management Association. It is also projected to reach 31.3 trillion this year, based on the figures from three quarters of the year.

Bricknode stated that the new platform is expected to be launched in Q1 2023 and it will enable the firm to provide services to customers that lack regulatory permissions. In addition, it will also enable Bricknode to provide an all-in-one solution to businesses and firms that want to launch investment services. Bricknode already offers Bricknode Broker, core technology, and brokerage software platform.