UK’s SME fintech lender Allica Bank has announced that it has hit its target of becoming profitable in 2022.
The lender, which began operations in March 2020, has been profitable on a monthly basis since June 2022.
Allica Bank has already touched the £1bn lending mark to mid-sized SMEs and its monthly loan originations are reaching close to £1bn on an annualised basis.
The bank is focused on catering to mid-sized SMEs with ten to 250 staff as these businesses make up 30% of all UK jobs and GDP but are underserved by traditional banks.
The SME lender aims to lend £3bn to SMEs in the next three years.
Allica Bank CEO Richard Davies said: “Allica has hit a number of milestones since launching – but reaching profitability in close to record-breaking time is one of the proudest achievements so far.
“We have an amazing team at Allica, with a crystal-clear focus on serving established SMEs too often left behind by the high street banks, and not served by most other digital lenders.
“Since opening our doors to lending in March 2020, we have made exceptional progress, demonstrating the gap in the UK’s finance ecosystem for a bank dedicated to serving the established SME market – and we will continue to push to support SMEs as we grow over the years ahead.”
In June this year, the bank raised £55m in additional funding to offer banking services to SMEs.