Deposits reach £1bn at Allica Bank as partnerships pay off

Customer deposits at SME lender Allica Bank have reached a milestone of £1bn, coming just two years after the bank launched in March 2020.

In order to reach this figure, Allica Bank has been working hard to diversify the ways in which it raises customer deposits, branching out from just offering direct savings accounts.

Through a partnership with tech firm Flagstone, Allica has expanded its savings offerings to other fintechs, becoming the account provider for digital savings app Chip and most recently for Revolut, as exclusively revealed by AltFi.

Allica also partnered to provide accounts for investment giant Hargreaves Lansdown.

“Our goal has always been to harness our technology to create a diversified and scalable model for raising deposits to fund our business lending,” said Richard Davies, CEO of Allica Bank, on the milestone.

“This sustainable approach puts us in an incredibly strong position to continue our growth over the coming years.”

As well as raising £1bn in deposits, Allica in November raised £110m as part of its Series B funding round, and just days later acquired a £600m SME loan book from AIB.

The deal brought with it an additional 2,000 small business customers, and led Davies to declare that Allica would reach profitability in 2022.