Allica Bank acquires £0.6 billion SME lending portfolio from AIB

Allica Bank excited to offer a secure and sustainable home to AIB SME lending customers in Great Britain

Acquisition brings forward Allica Bank’s target profitability date to the middle of 2022, with total combined lending book to be over £1 billion

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:

• Bridging and Commercial magazine named Allica Bank ‘Commercial Lender of the Year’ in their 2021 awards
• Leasing World crowned Allica Bank ‘New Entrant of the Year’ at their 2021 Gold Awards
• Shortlisted for five awards* at the forthcoming NACFB 2021 Patron Awards
• Business Moneyfacts Awards rated Allica Bank ‘Highly Commended’ for:
  • Best Business Fixed Account Provider
  • Best Service from a Commercial Mortgage Provider
  • Best SME Technology

Richard Davies, Allica Bank CEO, said: 

“We are thrilled to be welcoming AIB’s SME lending customers to Allica Bank, following AIB’s decision to withdraw from the GB SME lending market.

“We’re working closely with AIB to ensure a smooth and seamless transition for AIB customers who we look forward to providing with a secure and sustainable home. We’re proud of the strong technology and tailored personal service we’re able to offer Allica Bank customers and are delighted to be able to extend this service to AIB’s customers.

“Allica Bank is fast becoming the SME lender of choice, not least due to the investment we continue to make in developing both our direct relationship with SMEs and via our broker channel. This acquisition enables us to support and scale even more of Britain’s established SMEs and growth companies at a time when SMEs are looking for more tailored support from their bank.

“As we said at our recent trading update, we’re laser focused on growing our lending to multiple billions over the coming years as we seek to support the underserved and overlooked SMEs across the UK.”

AIB customers who would like to find out more can read our FAQs here.

Notes:

• Asset Finance Provider of the Year
• BDM Team of the Year
• Business Bank of the Year
• Commercial Mortgage Lender of the Year
• Most Innovative Lender of the Year