'Europe's fastest growing startup' Allica Bank hits £3bn milestone through SME CX obsession

Allica Bank, the UK challenger bank focused on serving SMEs, has continued its rapid ascent as Europe's fastest growing startup by hitting £3 billion in lending and £4 billion in deposits (or roughly $4 billion and $5.3 billion USD, respectively).

Commitment to SMEs: The milestones prove the bank's commitment to an often-overlooked business segment, and the raw power and scale of longtail middle markets. In the past two years, Allica has recorded its first year of profitability and posted a nearly-90% jump in pre-tax profits to about £30 million ($40 million USD). Chief Executive Richard Davies points out that companies with 5-250 employees make up around one-third of UK employment and GDP, yet their needs have often been sidelined. Allica seeks to close that gap.

Fighting the status quo: "The pace of Allica's growth is testament to the frustration that our customers feel with the status quo, and that Allica is offering a real alternative. We will continue to fight the corner for established SMEs who are so often overlooked and develop our offering even further for them," Davies said in a company statement.

Tech meets tradition: Its approach of pairing dedicated relationship managers with modern tech solutions has gained considerable traction, demonstrated by the bank’s designation as the UK’s fastest-growing private company by The Times Hundred and Europe’s fastest-growing start-up by Sifted.

Open banking partnership: A key element of Allica’s recent progress is its partnership with open banking platform Yapily, which allows SME customers to top up their accounts quickly and securely without leaving Allica’s app. For time-strapped business owners, the simplicity of real-time payments and the elimination of manual data entry offer immediate benefits. By integrating Yapily’s open banking infrastructure, Allica aims to reduce errors and administrative hurdles, allowing SMEs to dedicate more attention to growing their businesses. Both organisations hint at further innovation in leveraging open banking across other Allica Bank products, placing technology-driven convenience alongside high-touch, human oversight.

Moving forward, Allica plans to further refine its product suite—although "none of the products are more than half done," according to Davies—introducing new ways to speed up lending decisions and leveraging emerging technology like AI to streamline application processes. In doing so, the bank aims to stay at the forefront of digital capabilities while retaining a personal touch.