- Allica Bank’s Financial Performance:
- Allica Bank, a UK challenger bank lending to SMEs since 2020, reported its first full year of profitability.
- Revenues increased by 141% to £191 million in the 12 months up to 31 December.
- Customer deposits surged by 75% to £2.6 billion, with SME lending rising by 47% to £2 billion.
- Achievement of Profitability:
- Allica Bank achieved £16.1 million in pre-tax profit, marking the first time it has been profitable since its launch in 2017.
- CEO Richard Davies attributes the financial success to significant growth in revenue, lending, and deposits, indicating the bank’s proposition for SMEs is gaining traction.
- Strategic Partnerships:
- Allica Bank’s profitability is partly attributed to its strategy of partnering with fintech firms to enhance its offerings.
- Partnerships with companies like SurePay, ClearBank, and Wise Platform have strengthened its capabilities in areas like Confirmation of Payee (CoP) solutions and cross-border payments.
- Financial Backing and Investment:
- The bank’s financial success has been supported by strong financial backing from investors such as Warwick Capital Partners, Atalaya Capital Management, and TCV.
- Allica Bank secured around £385 million in total investment across multiple funding rounds, including a £100 million Series C round in December 2022.
- Future Plans:
- Allica Bank aims to scale further, targeting over 10% market penetration in the coming years, leveraging its growing profitability and investor support.
