Allica Bank acquires £0.6 billion SME lending portfolio from AIB Group

Allica Bank, the fintech challenger bank, makes its first major acquisition with an agreement to acquire c.2,000 SME customers and c.£0.6 billion of associated lending from AIB Group (UK) Plc following AIB’s exit from the SME market in Great Britain. The transaction will build on Allica Bank’s positive momentum since launching in March 2020 and accelerate the bank’s ambition to become the leading SME challenger bank for the decade ahead.

2,000 SME borrowers will transfer to Allica Bank and benefit from the bank’s distinctive customer- focused proposition, built around tailored lending expertise supported by proprietary modern technology and genuine local relationship banking.

Since first opening its doors to SME lending in March 2020, Allica Bank has launched a new network of local SME relationship managers offering tailored SME lending expertise able to fully support AIB’s SME customers. 85% of Allica Bank’s existing lending is to businesses outside London.

The acquisition of AIB’s SME lending book in Great Britain will:

• Fuel the development and expansion of Allica Bank’s existing award-winning service and proposition, including wider lending products, with Allica Bank also poised to launch its innovative Business Rewards Account early next year.
• Bring forward Allica Bank’s target date for reaching profitability to the middle of 2022 upon full completion of the transaction, given Allica Bank’s continued organic growth combined with the quality of the AIB SME lending portfolio.
• Post completion of the transaction, Allica Bank is expected to have a combined total lending book of more than £1 billion.

Allica Bank’s fast-expanding SME proposition has already gained significant traction and recognition across the industry, receiving a range of high profile industry awards and accolades:

oBridging and Commercial magazine named AllicaBank‘ Commercial Lender of the Year’ in their 2021 awards

oLeasing World crowned AllicaBank ‘New Entrant of the Year’ at their 2021 Gold Awards

oShortlisted for five awards* at the forth coming NACFB 2021 Patron Awards
oBusiness Money facts Awards rated AllicaBank‘ Highly Commended’ for:

• Best Business Fixed Account Provider
• Best Service from a Commercial Mortgage Provider
• Best SME Technology