Allica Bank hits profitability in just two years

Davies announced the bank has been profitable on a monthly basis for each of the last three months.

Allica specialises in serving mid-sized SMEs – typically with 10 to 250 staff. The bank said that: “These businesses represent over 30 per cent of all UK jobs and GDP but are underserved by traditional banks.”

The fintech has already lent over £1bn to mid-sized SMEs and now has monthly loan originations reaching close to £1bn on an annualised basis. The lender forecast that it would complete £3bn of lending in the next three years between 2022 and 2024.

Davies said: “Allica has hit a number of milestones since launching – but reaching profitability in close to record-breaking time is one of the proudest achievements so far.

“We have an amazing team at Allica, with a crystal-clear focus on serving established SMEs too often left behind by the high street banks, and not served by most other digital lenders.

“Since opening our doors to lending in March 2020, we have made exceptional progress, demonstrating the gap in the UK’s finance ecosystem for a bank dedicated to serving the established SME market.”

Earlier this month, the bank said that it was expanding its commercial mortgage range alongside an aim to complete £500m in committed loan offers by the end of the year.