London bank acquires £600m SME lending portfolio
London based Allica Bank has acquired a £600m SME lending portfolio from AIB Group PLC Allica Bank, offering a “secure and sustainable” home to AIB SME lending customers.
The acquisition brings forward Allica Bank’s target profitability date to the middle of 2022, with a total combined lending book to be over £1bn.
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.
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 per cent of Allica Bank’s existing lending is to businesses outside London.
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.
“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.”
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