Allica Bank has announced that it grew SME lending to over £560m in 2021.

The challenger bank said it will reach profitability in 2022 and forecasts to complete £3bn of lending to SMEs in the next three years.

Allica Bank published its 2021 business performance update, which highlighted the rapid scaling of the business in its first two years of operation. Its SME lending growth to over £560m was more than 12 times higher compared to 2020, the first year of the bank’s operations.

Figures also confirmed that Allica’s deposits grew to over £800m in 2021, while its net operating income increased to £7.8m, up from £0.2m in 2020.

“Allica has had an exceptional year and we’re rapidly becoming a major force in SME banking at a time when SMEs are looking for a true alternative in the banking market,” said Allica CEO, Richard Davies.

“We have laid robust foundations for an innovative full banking offering, and believe we are uniquely positioned to become a genuine alternative to the incumbent banks for established SMEs, who make up around 30% of the economy – and we’re seeing growing signs that the Allica proposition and service is gaining traction against the big five banks in the established SME segment.

“Looking ahead, we’re hugely excited about the plans for our customer proposition which are being enabled by Allica’s proprietary technology and data capabilities.”

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