Allica Bank, a UK lender focusing on small to medium sized businesses, has reached profitability.
In Brief:
The bank says it’s been profitable on a monthly basis since June.
This follows its milestone of having lent over £1bn in total to SMEs.
It intends to reach £1bn of annual lending, having lent almost £80mn each month this quarter.
What does this mean?
Allica’s growth shows there was a huge demand for SME finance, and digital solutions to serve these customers. Allica Bank began just as the global pandemic led to lockdowns and small businesses across the UK suffered and says its success has demonstrated a gap in the market for “a bank dedicated to serving the established SME market”.
