Allica Bank

What Allica Bank does

Allica Bank is a UK digital challenger bank founded in 2018 (banking licence received 2019) that targets established small and medium-sized businesses with 5–250 employees, an underserved segment poorly served by incumbent high-street banks. It operates through three legal entities: Allica Bank Limited (current accounts, savings, commercial mortgages), Allica Financial Services Limited (asset and growth finance), and Allica Bridging Finance Limited (bridging products acquired via Tuscan Capital in August 2024), with the Kriya-acquired embedded finance platform added in October 2025. Core technology is a cloud-based digital banking platform with proprietary AI/ML models for credit decisioning, risk analysis, and fraud detection, Open Banking integration via Yapily, and native accounting software sync to Xero, Sage, QuickBooks, and FreeAgent; AI-driven underwriting supports the 4-hour commercial mortgage term-sheet turnaround.

The business model is net-interest-margin led: revenue of £371.3 million in 2024 (up 27% year-on-year) is generated primarily on the £3.7 billion SME lending book (commercial mortgages, bridging, asset finance, growth finance, and now invoice finance) funded by the £5.7 billion customer deposit base (up 29%), with supplementary fee income from card transactions, arrangement fees on mortgages and bridging loans, and a £25 monthly account fee on balances below £10,000. Distribution is hybrid: a network of 40+ relationship managers across 12 UK regions handles lending sales alongside digital self-serve onboarding for current accounts, broker/introducer channels for asset finance and bridging, and accountant referral partnerships. The company is headquartered in London with offices in Milton Keynes and Manchester, employs 501–1,000 staff, serves over 30,000 SMEs (~5% of its target market with a stated goal of 10% by 2028), achieved unicorn status at a $1.2 billion valuation in February 2026, and is profitable (third consecutive year of profitability, underlying PBT up 34% to £43.7 million).

Name

Allica Bank

Legal name

Allica Bank Limited

Website

https://allica.bank

Company type

Private

Founded year

2019

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Allica Bank is a UK digital challenger bank providing current accounts, savings, commercial mortgages, asset finance, bridging loans, and invoice finance to established small and medium-sized businesses with 5–250 employees, combining a 40+ relationship-manager network with proprietary AI-driven lending technology.

Ownership category

akta.pro rank

Product category

SME Business Banking

NAICS

Commercial Banking (522110), Depository Credit Intermediation (5221), Sales Financing (52222)

SIC

State Commercial Banks (6022), Short-Term Business Credit Institutions (6153)

akta.pro primary industry

SME Deposits & Business Accounts (Operating, Savings, CDs) (FSABABAC)

akta.pro secondary industries

Credit & Overdraft Enablement (Credit Lines, Underwriting Integrations) (FSAGAAAJ), Account Aggregation & Connectivity (Multi-bank linking) (FSAGACAA), Embedded Lending & Credit (POS, Working Capital, Credit Lines) (FSAGALAD), Overdraft & Deposit-Advance Products (FSAKAOAE)

Keywords

• SME business banking
• Commercial lending
• Asset finance
• Commercial mortgages
• Bridging finance

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure, Others

Revenue model

1. Net Interest Income: Interest earned on SME lending portfolios (commercial mortgages, bridging loans, asset finance, growth finance) minus interest paid on customer deposits
2. Transaction and Fee Income: Fees from card transactions (cashback paid to customers is an expense), arrangement fees on mortgages and bridging loans, monthly fees on low-balance accounts (£25 for balances below £10,000 average)
3. Business Current Account Services: Revenue from business current account services including payment processing, bulk payments (£20 fee), and related banking services

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

Allica Bank is a UK digital challenger bank that provides a unified business banking platform for established SMEs (5-250 employees), anchored by the Business Rewards Account (current account with linked Savings Pot at up to 4.08% AER and up to 1.5% cashback on card spend) and complemented by commercial mortgages, asset finance, growth finance, business overdrafts, invoice finance, bridging finance, and fiduciary deposit accounts. Distribution combines digital self-serve with a network of 40+ UK-wide dedicated relationship managers and a broker channel, supported by proprietary AI-driven credit decisioning and Open Banking-led underwriting.

Product overview

Allica Bank is a UK digital challenger bank offering a unified banking platform for established SMEs (businesses with 5-250 employees). The core product is the Business Rewards Account, which serves as the primary current account with integrated Savings Pot functionality. The bank operates a multi-entity structure: Allica Bank Limited provides core banking products (current accounts, savings, commercial mortgages); Allica Financial Services Limited handles asset and growth finance; and Allica Bridging Finance Limited manages bridging products. The portfolio spans business current accounts, business and personal savings, commercial mortgages (owner-occupied, investment, and healthcare sectors), asset finance, growth finance, business overdrafts, invoice finance, and bridging finance. The bank also serves fiduciary sectors (pension trustees, solicitors, FCA-regulated firms, insolvency practitioners) with specialized deposit accounts. Following acquisitions of Kriya (embedded finance) and Tuscan Capital (bridging), the bank has expanded its product range to include embedded payments and bridging finance capabilities. All products are supported by relationship banking services, UK-based customer support, and AI-powered technology for lending decisions and fraud detection.

Differentiator

Problem solved

Functional benefit

Products and services

• Business Rewards Account Business current account for established UK SMEs (5-250 employees) with at least £50,000 balance, offering up to 4.08% AER on linked Savings Pot, up to 1.5% uncapped cashback on debit card spend, a dedicated relationship manager from day one, multi-director access, expense cards, real-time notifications, and FSCS protection.
• Business Savings Savings accounts for businesses, including fixed and variable rate options, with market-leading interest rates and FSCS protection up to £120,000.
• Personal Savings Savings products for individuals with competitive rates and FSCS protection up to £120,000.
• Commercial Mortgages Property finance for SMEs including owner-occupied commercial mortgages up to £10 million (130% debt service cover, 30-year repayment), commercial investment mortgages up to £15 million (5-year interest-only, up to 145% debt service cover for higher-rate taxpayers), and healthcare commercial mortgages up to £15 million for experienced operators. 4-hour term-sheet decisions.
• Asset Finance Financing solutions for SMEs to acquire equipment, vehicles, machinery, and other business assets, provided by Allica Financial Services Limited and supported by the £350 million ENABLE Guarantee with British Business Bank.
• Growth Finance Bespoke financing solutions tailored to the growth needs of established SMEs, provided by Allica Financial Services Limited.
• Business Overdraft Flexible arranged overdraft facility for Business Rewards Account customers needing over £25,000 for business purposes; requires UK Limited Company or LLP status, minimum 24 months trading, and annual turnover over £500,000.
• Invoice Finance Flexible working-capital solutions including invoice factoring and discounting for SMEs, offered through the Kriya platform acquired in October 2025 and targeting £1 billion of SME working-capital finance over three years.
• Bridging Finance Short-term finance solutions to bridge funding gaps or operations, including standard bridging (up to 24 months, up to 75% LTV), refurbishment loans, and bridge-to-term options (The Stabiliser and The Improver), provided by Allica Bridging Finance Limited; rates from 6.45% per month variable with a 2% arrangement fee.
• SIPP Pension Scheme Bank Account Specialized bank account for SIPP pension scheme providers, with funds held in individual sub-accounts for members, multi-level authorizations, and enhanced deposit protection.
• SSAS Pension Trustee Bank Account Bank account for SSAS pension trustees with funds held in individual scheme bank accounts and multi-level payment authorizations.
• Client Deposit Account Segregated client deposit accounts (pooled and designated) for solicitors, FCA-regulated firms, and accountants, with self-serve online account opening.
• Estate Bank Account Case-specific estate accounts for insolvency practitioners with self-serve online account opening and nullify-interest functionality for end-of-life reconciliations.

Quantifiable outcome

• Third consecutive year of profitability with 34% increase in underlying profit before tax to £43.7 million
• +4 more outcomes

Named customers8 records

Segments4 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

AI capability6 records

Feature3 records

Partnerships

Five partnerships are on record, tiered core.

• YapilycoreTechnology or Integration · 1 April 2025Open Banking API provider partnership enabling Allica Bank's open finance capabilities and integrations.
• XerocoreTechnology or IntegrationAccounting software integration allowing automatic sync of transaction activity with Xero accounting software.
• SagecoreTechnology or IntegrationAccounting software integration allowing automatic sync of transaction activity with Sage accounting software.
• QuickBookscoreTechnology or IntegrationAccounting software integration allowing automatic sync of transaction activity with QuickBooks accounting software.
• FreeAgentcoreTechnology or IntegrationAccounting software integration allowing automatic sync of transaction activity with FreeAgent accounting software.

Scale indicators12 records

Recent moves7 records

Expansion highlights7 records

Direct peers

• OakNorth Bank: UK challenger bank focused on SME lending (commercial mortgages, business loans) with proprietary credit decisioning platform. Highly comparable to Allica's lending-led model with established-SME focus; serves as a direct peer on the lending side of Allica's offering.
• Starling Bank: UK digital challenger bank offering business current accounts, loans, and SME banking. Direct competitor with similar digital-first model, FSCS protection, and target SME segment; larger scale than Allica with both personal and business banking.
• iwoca: UK fintech providing SME working capital loans, invoice finance, and credit lines using AI-driven underwriting. Comparable lending model to Allica's asset/growth finance with focus on established SMEs, though iwoca operates as a non-bank lender.
• Atom Bank: UK digital challenger bank offering business and consumer products including savings and SME lending. Comparable as a UK challenger bank with technology-led approach, though historically more consumer-focused than Allica's SME focus.
• Funding Circle: UK-listed platform providing SME loans and business finance with proprietary credit decisioning. Comparable on SME lending focus and technology-led underwriting, though operates as a marketplace lender rather than a chartered bank.
• Tide: UK-based digital business banking platform serving SMEs with current accounts, invoicing, and integrated tools. Closely overlaps with Allica in target customer (UK SMEs), product set (business current accounts), and digital-first GTM, though Tide lacks Allica's direct lending focus.

Broad incumbents

• Metro Bank: UK challenger bank with high street presence offering business current accounts, commercial lending, and relationship banking. Comparable in relationship-led approach to SME banking, though broader consumer focus.
• Lloyds Bank Business: UK incumbent bank with the largest share of SME business current accounts. Competes with Allica across current accounts, savings, commercial mortgages, and overdrafts; representative of the incumbent segment Allica is disrupting.
• HSBC UK (Kinetic): Incumbent UK bank with HSBC Kinetic digital business banking offering targeting SMEs. Large incumbent competitor with broader product suite and deposit base; competes with Allica in commercial mortgages, current accounts, and SME lending.

Emerging players

• Revolut Business: UK-headquartered digital banking platform with growing SME/business offering including current accounts, expense management, and FX. Direct overlap in digital SME banking; competes on digital UX though less focused on lending than Allica.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/@allicabank
• Facebookfacebook.com/allicabank
• LinkedInlinkedin.com/company/allicabank
• Instagraminstagram.com/allica_bank
• Xx.com/allicabank

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries2 records

Funding overview

Funding rounds9 records

Investors9 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments7 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Allica Bank