UK Fintech Allica Bank Reports Steady Progress in 2022

Allica Bank claims it is one of the “fastest” UK Fintechs to hit profitability – “becoming monthly profitable in June 2022, less than three years after securing a banking license – and achieving a £3m pre-tax profit in the second half of the year.”

Allica claims it has had “a transformational year of lending, deposit and revenue growth – close to £800m increase in SME lending and more than 500% revenue growth year-on-year.”

The firm’s proprietary new business current account – “the Business Rewards Account – makes Allica the UK’s only full-service bank dedicated to serving established SMEs.”

The company also appointed Patrick Magee, formerly Chief Commercial Officer of the British Business Bank, as Non Executive Director.

Allica Bank is now reporting “its business and financial performance for 2022, confirming a series of watershed achievements across the business.”

The bank has reported a solid business and financial performance in 2022:

  • Revenue growth of 534%
  • SME lending balances increase by £782m, up 139% to £1.35bn (£566m in 2021)
  • Deposits up 78% to £1.5bn (£846m in 2021)
  • Full Year pre-tax loss £1.6m (£25m pre-tax loss in 2021) – turning monthly profitable in June 2022, with £3m profit before tax in H2 2022
  • Throughout 2022, Allica made significant progress in building the UK’s best fintech SME challenger bank for the decade ahead:

The firm “launched new business current account – the Business Rewards Account – offering customers the chance to move all banking to Allica, with no monthly fees, market leading savings rates and cash back on spending.”

The company also “launched new tech-driven features for customers, including Allica’s proprietary automated decision-in-principle software for commercial mortgages – already processed over £250m in financing requests, saving thousands of hours for customers and staff.”

The firm further noted that it “successfully migrated AIB’s GB SME loan portfolio (acquired in 2021) – growing Allica’s customer base by over 1,400, and further proving the bank’s operational and technology capabilities.”

Allica Bank reportedly “raised £155m in capital, with a successful £100m Series C funding round completed in December 2022, with new backing from leading global technology investor TCV (portfolio includes Spotify, Netflix and Revolut) alongside existing investors Warwick Capital and Atalaya Capital Management.”

Allica is also “announcing the appointment of Patrick Magee as a Non Executive Director. Patrick was the Chief Commercial Officer of the British Business Bank (BBB) until June 2022, having worked to set up the BBB as part of the Shareholder Executive, and was previously a Managing Director of Corporate Finance at JP Morgan Cazenove.”

Commenting on Allica’s performance, Richard Davies, CEO of Allica Bank, said:

“2022 was a landmark year for Allica – becoming profitable, delivering amazing growth in deposits, lending and revenue, launching our flagship Business Rewards Account and completing our Series C funding round in an extremely challenging market. We have an obsessive focus on building a distinctive and disruptive proposition for established SMEs — which represent over 30% of the UK’s GDP. With the launch of our Business Rewards Account – developed entirely in-house – we can now proudly say Allica is the UK’s only full-service bank dedicated to serving established SMEs.”

As noted in the update:

“Allica has entered 2023 with an excellent platform to continue to grow and expand its offer to SMEs – and in Q1 we’ve already seen profitability growing strongly, with very prudent capital and liquidity positions supporting our continued growth.”

Commenting on Patrick Magee’s appointment, John Maltby, Chair of Allica, said:

“We’re delighted Patrick is joining the Allica Board. Patrick’s deep experience in SME financing, corporate finance and government relations will add to our strong Board and supports our ambitions to lead the market for SME banking in the UK.”

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