Allica Bank completes £500m AIB loan book migration and reveals first business current account details

By Oliver Smith on Tuesday 9 August 2022

Alternative Lending

Over 1,400 AIB SME customers will get exclusive first access to Allica’s Business Rewards Bank Account.

Allica Bank completes £500m AIB loan book migration and reveals first business current account details
Image source: Richard Davies speaking at AltFi Festival of Finance 2022.

Nine months after acquiring Allied Irish Banks (AIB) SME lending portfolio, Allica Bank today announced the migration of some 1,400 customers has now been completed.

To move the customers across Allica has spent the last months building a bespoke technology system to migrate the 1,700 individual loans across in two tranches, one of which came across in April and the second which was moved at the end of July.

The AIB loan book was initially valued at around £600m by Allica, but now that its migration is complete, the lender states it is worth £500m.

As customers have been moved across, they’ve each been onboarded as new Allica Bank SME customers, complete with dedicated relationship managers.

“To have seamlessly migrated such a complex portfolio in just a matter of months was a major undertaking for a bank of our size, and would not have been possible without our top-notch technology capabilities and committed colleagues,” said Richard Davies, CEO of Allica Bank.

“We have done everything we can to make sure our new customers feel right at home with Allica Bank, and benefit from our strong technology proposition with tailored personal service delivered by dedicated relationship managers.”

Interestingly, all the new customers have been offered exclusive early access to Allica’s upcoming Business Rewards Bank Account.

No details were given on what the new bank account will look like, only that it’s “due to be available to the wider market later this year”.

Many of the AIB customers being moved across will have had business banking accounts with the Irish lender, hence Allica’s decision to soft-launch the account with them.

UPDATE 09-08-2022 - An earlier version of this article incorrectly stated that Allica Bank had acquired the AIB portfolio for £264m.

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