Allica Bank’s business current account reaches 2,000 established business customers
Allica Bank – the fintech challenger bank specifically focused on serving established businesses with 10-250 employees – now has 2,000 business current account customers after launching earlier this year.
Compared to the millions of UK microbusinesses, the established SME segment that Allica is dedicated to is far smaller in number but make up a far larger proportion of the economy – representing a third of all turnover and jobs. Despite this, established SMEs are increasingly underserved as traditional high street banks retrench from banking them – and until Allica Bank, they have been largely neglected by fintech challengers.
The milestone comes as the bank reveals it is now part of the Current Account Switch Service (CASS), giving businesses a simple, reliable, and stress-free way to switch their bank account to Allica.
In November, Allica was revealed as the fastest-growing fintech business in the UK ever in the Deloitte UK Technology Fast 50 and last year became one of the quickest UK fintechs to become profitable.
Allica Bank’s business current account, called the Business Rewards Account, has seen significant growth since it launched earlier this year, after initially being available only to its existing customers. It offers no monthly fees, cashback, a market-leading savings rate*, and the support of a dedicated relationship manager. Relationship banking remains important to UK SMEs, for example recent research found that less than 30% would consider switching to an internet-only bank – and just 12% feel they have strong relationship with their current bank.1
By joining CASS, businesses will be able to automatically transfer Direct Debits, standing orders, payroll details and money from an existing bank account in seven working days.
Keith Middlemass, chief operating officer at Allica Bank, said “Established businesses represent a third of the UK economy and are such a vital part of our local communities. Yet, despite this, they aren’t getting the service they deserve from high-street banks, which is becoming increasingly impersonal, inconvenient, and poor value.
“Allica Bank is doing things differently. We’re bringing back the kind of relationship banking many business owners will remember, but reimagining it with modern, powerful technology.
“We’re incredibly proud to have opened 2,000 Allica Bank business current accounts. This is a core part of Allica’s strategy as we look to become the primary bank of choice for established businesses. And now, by joining CASS, businesses can access the banking they actually deserve with minimal stress or hassle.”
* As of December 2023
1 EY’s ‘Voice of the SME: banking experiences & expectations’ report. Published July 2021