Allica Bank enlists ClearBank to boost business banking for UK SMEs

ClearBank, the enabler of real-time clearing and embedded banking for financial institutions, today announced its partnership with Allica Bank, the fintech challenger bank dedicated to supporting established UK small and medium businesses.

Allica Bank was founded to serve established UK SMEs (businesses with 10-250 employees) and provide them with tailored, human support, backed up with the latest banking technology—which established SMEs struggle to get from the big banks. It offers business current accounts and tailored lending products, powered by market-leading lending technology, such as an automated, instant decision-in-principle for business mortgages.

It aims to be the go-to bank for established businesses within the next decade, and following significant growth in 2022—including 534% revenue growth, reaching £1.35 billion in lending, and a 76% increase in staff—it is well positioned to meet this ambition.

ClearBank is a key enabler for Allica’s ambitious growth. ClearBank provides Allica Bank with client money accounts and access to UK payment schemes, including Faster Payments (FPS), CHAPS and Bacs, powered by its API-first, cloud-native technology.

Allica launched its business current account to established businesses late last year, offering cashback rewards, no monthly fees and relationship manager support, along with a market-leading 3% AER integrated instant-access Savings Pot. It can also offer quick and secure transactions using FPS, Bacs and CHAPS. Allica believed it crucial to work with a provider that was closely aligned with its values and growth objectives to help it scale at pace.

ClearBank works with 15 of the UK’s newest banks—rather than competing with its own clients, it is a stable and profitable “bank for banks”.

Keith Middlemass, Chief Operating Officer, Allica Bank, said: “By offering a relationship-backed service, powered by modern technology, Allica is building the future of banking for established businesses. It is vital that we work with industry-leading partners that can grow with us as we scale. ClearBank is a leader in its field and is an obvious partner for us—we are on the same path both in growth trajectory, and in our values.”

Charles McManus, Chief Executive Officer, ClearBank, said: “With its focus on SMEs, Allica Bank is supporting the backbone of our economy—and we’re committed to helping them boost business banking in the UK. We’re providing the speed, flexibility, and security Allica Bank needs to provide the very best services to UK SMEs.”

The two banks have been working together since July 2021. During that time both have announced that they have achieved profitability—with Allica being one of the fastest UK fintechs to ever achieve profitability—against the backdrop of a wider downturn in the fintech sector.