Allica Bank saw SME lending increase twelvefold to £560 million last year.

The bank is focused on providing credit and payment services to established, growing SMEs.

The FinTech challenger said that it will reach profitability in 2022, three years after receiving bank authorisation.

It expects to complete £3 billion of lending over the next three years.

The SME lender reported a net operating income of £7.8 million last year, up from £200,000 in 2020.

In 2021, the bank announced a £110 million Series B funding round.

It also announced its first major acquisition with an agreement to acquire 2,000 SME customers and £0.6 billion of associated SME lending from Irish bank AIB Group.

“We have laid robust foundations for an innovative full banking offering, and believe we are uniquely positioned to become a genuine alternative to the incumbent banks for established SMEs, who make up around 30 per cent of the economy – and we’re seeing growing signs that the Allica proposition and service is gaining traction against the big 5 banks in the established SME segment,” said Richard Davies, chief executive, Allica Bank. “Looking ahead, we’re hugely excited about the plans for our customer proposition which are being enabled by Allica’s proprietary technology and data capabilities.”

The chief exec also announced that its business reward account will be launching soon.

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