Allica Bank nearly doubles profits and hits £3bn of lending

Allica Bank, the UK’s fastest-growing fintech, has announced a record-breaking financial year, posting an 86% rise in pre-tax profit to £29.9 million and crossing the £3 billion lending threshold – all in the same year it was named Europe’s fastest-growing start-up by Sifted.

The digital challenger bank’s annual report for 2024 reveals a surge in performance across all key metrics:

• Pre-tax profit soared to £29.9 million (up from £16.1 million in 2023)
• Gross revenue rose by 68% to £293.1 million
• Total lending hit £3 billion, up 54% from £2 billion in 2023
• Customer deposits climbed to over £4 billion – a 68% increase
• Gross new lending topped £1 billion for the first time, up 47%

Launched just four years ago in 2020, Allica has rapidly established itself as a major force in SME finance, powered by proprietary technology and a clear focus on serving established small and medium-sized enterprises – a sector long underserved by traditional high street banks.

“We are pleased to have almost doubled our pre-tax profit to £29.9 million, too, as we continue to grow sustainably,”

Allica’s strong financial performance comes as it continues to rack up accolades, including topping the Times 100 list of fastest-growing private companies, ranking first in Deloitte’s UK Fast 50, and being named Europe’s fastest-growing start-up.

At the heart of Allica’s success is its digital-first approach and commitment to established SMEs – companies typically employing 5 to 250 staff, which collectively represent around one-third of the UK economy. With the goal of reaching 10% market share in this segment within three years, the bank is investing heavily in technology and service delivery.

In 2024 alone, Allica’s 200-strong in-house tech team delivered over 3,500 software releases, including integrations with Wise, Sage, and Xero, alongside new features in its Introducer Portal and automated lending tools.

The bank also saw rapid adoption of its flagship Business Rewards Account, with over 6,000 SMEs onboarded by year-end. The account is designed to reward and empower SMEs, while offering seamless integration with Allica’s growing suite of financial tools.

Customer satisfaction remained high throughout 2024, with a Trustpilot score of 4.6, Net Promoter Score (NPS) of +67, and near-perfect mobile app ratings across both the Apple App Store and Google Play.

Allica’s ambition to become a full-service SME bank was underlined by its acquisition of bridging finance specialist Tuscan Capital, expanding its lending capabilities and further diversifying its financial offering.

The bank also continued to advocate for systemic changes benefiting SMEs, leading industry efforts to amend Basel 3.1 regulations and campaigning for enhancements to the UK’s business savings landscape through its Great British Savings Squeeze initiative.

“Allica have invested heavily in our proprietary technology capabilities to ensure we have the foundations in place to continue to scale at pace, in terms of the amount of established SMEs we’re supporting and the ways we’re supporting them,” said Davies.

“The pace of Allica’s growth is testament to the frustration that our customers feel with the status quo, and that Allica is offering something truly exciting and innovative. We are determined to continue championing the needs of SMEs across the country, and hopefully change business banking for good.”