Committing to excellence in asset finance

A leadership interview with Brandon Hall, Head of Sales – Broker Asset Finance at Allica Bank

Allica Bank has made remarkable strides in the asset finance sector, positioning itself as a leader in innovation and service excellence. In the past few months, Allica has earned several prestigious accolades, including being named the Asset Finance Provider of the Year at the AFC Awards, as well as securing two AF Top 50 awards: ‘Highest Climber’ and ‘Fastest Growing Lender in One Year’. This recognition, coupled with significant milestones such as lending over £500 million to UK businesses, underscores the bank’s growing influence in the industry.

Recently, Asset Finance Connect spoke with Brandon Hall, Head of Sales – Broker Asset Finance at Allica Bank, to gain insights into the bank’s continued growth, innovative product offerings, and commitment to service excellence.

A focus on automation: Revolutionising asset finance for brokers and SMEs

Allica Bank’s strategic investment in proprietary software and automated decisioning has transformed how the bank processes loan applications. “Automated decisioning has been a key factor in maintaining our service levels while scaling,” Hall noted. “It allows us to grow without sacrificing what sets us apart: our focus on customer service.”

This automation has streamlined the lending process, providing faster decisions for brokers and small-to-medium enterprises (SMEs). According to Hall, automated decisioning now accounts for 30% of all eligible deals at Allica, and the bank aims to increase that figure to 50%.

“Automated decisioning using AI has allowed us to handle higher volumes without affecting our underwriting speed, ensuring that we consistently stay within our SLA and more often have a decision within 4-5 hours,” Hall explained. He noted that while automation has enhanced efficiency, it has also freed up human resources to focus on more complex applications, such as those involving refinancing or clients with higher exposure needs.

In line with this commitment to automation, Allica has also introduced a quote calculator for brokers, which simplifies the lending process further. This tool has been a game-changer for brokers, allowing them to quickly generate quotes while maintaining a strong relationship with the bank.

Listening to brokers: Insights from Allica’s Q2 broker survey

Allica Bank takes broker relationships seriously. The results of the Q2 broker survey revealed that 96% of brokers rated their experience with Allica as good or excellent, highlighting the bank’s commitment to service excellence. Hall emphasized the importance of these surveys, which are conducted twice a year, as they provide crucial feedback that helps Allica continuously improve its offerings.

“It’s the verbatim feedback that we really drill down on. You can only stay at the top of your game if you listen to that feedback and make incremental improvements,” Hall said. The bank uses this feedback to refine its services, ensuring that brokers’ evolving needs are met.

The role of brokers in a digital future

As the asset finance landscape evolves, the role of brokers is also changing. Despite the rise of technology, Hall believes that brokers will remain an integral part of the process, particularly for more complex lending scenarios. He acknowledged that while tech might take over for straightforward transactions, the human connection that brokers provide is irreplaceable.

New products and services: Growth Guarantee Scheme and more

Allica Bank has been expanding its product offerings to meet the growing demands of its clients. The bank’s collaboration with the British Business Bank has been particularly noteworthy. Initially, Allica participated in the Recovery Loan Scheme (RLS), but they have recently been approved for the Growth Guarantee Scheme (GGS), which provides businesses with access to more affordable financing options.

“The Growth Guarantee Scheme is integral to some businesses, helping them get finance at a better price,” Hall explained. He emphasized that the GGS is crucial for SMEs that might not qualify for standard lending options, offering them an opportunity to grow and thrive.

In addition to the GGS, Allica has rolled out several enhancements, including better refinancing terms for hard assets and plans to introduce long-term sub-hire options later this year.

Hall highlighted the importance of refinancing, noting that it has become increasingly critical for SMEs over the past few years. “Refinancing allows us to support SMEs on their growth journey and enhance our value proposition. It’s a way for us to help businesses fund purchases and expenditure that might not otherwise qualify for funding.”

Looking ahead: Ambitious goals for 2025

Allica Bank’s growth trajectory shows no signs of slowing. In April 2024, the bank announced it had lent over £500 million in asset finance, and the goal for 2025 is to reach £1 billion in asset finance lending. As part of this growth, Allica has increased its maximum loan exposure from £1 million to £2.5 million, allowing it to serve larger clients and support more SMEs on their growth journeys.

Hall hinted at several upcoming developments, including the introduction of long-term sub-hire and the expansion of the valuation panel, which will provide more specialised expertise for refinancing transactions. These initiatives align with Allica’s mission to be a one-stop shop for brokers, continuously evolving to meet their needs.

Conclusion

Allica Bank’s rapid ascent in the asset finance industry can be attributed to its strategic investments in automation, its commitment to broker relationships, and its innovative product offerings. With ambitious goals for the future, including reaching £1 billion in asset finance lending by 2025, Allica is well-positioned to remain a leader in the sector.

As Brandon Hall pointed out, “There is nothing more valuable than feedback from the people who use our products and services.” Allica’s focus on listening to its brokers, automating processes for efficiency, and offering tailored products like the GGS positions the company as one to watch in the years ahead.