By Daniel Lanyon on Tuesday 23 November 2021
The acquisition of AIB’s UK SME loan book brings forward Allica Bank’s target profitability date to the middle of 2022.
Allica Bank, a new challenger SME bank, has made its first major acquisition with an agreement to acquire 2,000 SME customers and a c.£600m loan book from AIB Group
One of Ireland’s four largest banks, AIB has recently exited from the SME market in the UK in a cost-cutting drive.
Since launching in March 2020, Allica Bank has been on the warpath to compete in the increasingly competitive ‘middle’ segment of the SME market.
Whilst hiring senior fintech leaders in the form of Richard Davies, formerly banking CEO at Revolut as its CEO and Conrad Ford, formerly founder and CEO of Funding Options, as its chief product officer, it is also blending a hybrid analogue and digital strategy. For example, customers are given a dedicated customer relationship manager who meets with firms.
Following the purchase of the AIB loan book, Alllica says it is bringing forward its target profitability date to the middle of 2022.
“We’re working closely with AIB to ensure a smooth and seamless transition for AIB customers who we look forward to providing with a secure and sustainable home. We’re proud of the strong technology and tailored personal service we’re able to offer Allica Bank customers and are delighted to be able to extend this service to AIB’s customers,” said Richard Davies, Allica Bank CEO.
“We’re laser-focused on growing our lending to multiple billions over the coming years as we seek to support the underserved and overlooked SMEs across the UK,” he added.
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