Allica Bank has reached its first full-year of profitability three years after the UK FinTech started lending to SMEs.

The digital bank saw lending jump 47 per cent to £2 billion in the year ended 31 December 2023.

The digital bank, which first started lending to SMEs in 2020, recorded pre-tax profit of £16.1 million for the 12-month period.

“Recording our first full year profit just three years after opening our doors for lending on the eve of the covid lockdown was a true milestone in challenging market conditions, and one we’re very proud to have achieved," said Richard Davies, chief executive, Allica Bank. “Alongside this we were recognised as the fastest-growing UK FinTech ever in Deloitte’s annual Technology Fast 50 rankings, and we are proud to not only be growing quickly but sustainably by investing back into the business, our products and our people."

The figures come after Allica launched its business current account last year, which now has over 2,000 customers.

It also grew its asset finance business, surpassing £200 million in annual lending for the first time since launching the product in 2021.

The bank said that it is looking to scale further, aiming for more than 10 per cent market penetration over the next few years.

---