British SME challenger bank Allica has achieved remarkable success, nearly doubling its profits and reaching £3 billion in lending during a record-setting year, earning recognition as Europe’s fastest-growing startup.
The bank secured its position as the fastest-growing private company in the UK, according to The Times, and was also honored as the fastest-growing tech firm by Deloitte. Pre-tax profits surged to £29.9 million, an impressive 86% increase from the previous year, fueled by a 68% rise in gross revenue to £292.1 million.
In this period, Allica welcomed 6,000 SMEs to its Business Rewards Account and broadened its lending portfolio through the strategic acquisition of bridging finance specialist Tuscan Capital.
This growth has been bolstered by significant investments in digital infrastructure, allowing the digitally-oriented bank to enhance its revenue and grow its loan book to over £3 billion, with customer deposits exceeding £4 billion.
Allica’s proprietary technology is designed specifically to cater to established SMEs—those employing between 5 and 250 staff, accounting for a third of the UK’s economy. The company currently employs over 200 product and engineering professionals and plans to deliver more than 3,500 technology releases in 2024, including new integrations with platforms like Wise, Sage, and Xero.
Richard Davies, CEO of Allica Bank, commented, “We have made substantial investments in our proprietary technology to build a solid foundation for rapid scaling, both in the number of established SMEs we assist and the methods of support we provide.”
He further emphasized, “The speed of Allica’s growth underscores the frustrations that our customers experience with existing services, highlighting our commitment to offering genuinely innovative solutions.”