For the second consecutive year, Allica Bank has taken the top spot in Deloitte’s Fast 50 Technology award programme. Allica, an online banking platform, serves established small and medium-sized enterprises (SMEs) with 10 or more employees. Allica launched in 2019 as a fully authorised bank with its first deposit product. Since then, the London-based company has grown substantially. Its employee headcount has increased from 110 in 2020 to over 600 people - recording its first full year of profit in April 2024. Davies attributes this growth to the company’s ability to execute efficiently. “My mantra is always execution at pace, not focusing on what others are doing. If you can consistently execute meaningfully faster at good quality, then over time, you build a massive advantage.”

The bank’s ongoing growth is driven by its commitment to improving the banking experience for SMEs. In March 2024, Allica announced a partnership with accounting software platforms Sage and Xero to help simplify the accounting process for SMEs. “We see no one else really trying to build the kind of full-service replacement for the mainstream banks - offering current account and all types of lending - in a way that keeps us unique,” says Davies. The bank aims to expand its market penetration from 3% to 10% by 2027. The recent acquisition of Tuscan Capital in August 2024 marks its entry into the bridging finance sector, reflecting the bank’s use of organic and inorganic methods to promote growth. Yet, as CEO Davies points out, “ultimately, there is no magic secret to our growth - just a clear strategy and continuous work on executing against this from a talented team.”

The bank’s in-house approach to technology has been a key enabler of its growth. It has allowed Allica to build a scalable infrastructure that has supported its expansion with staff across Britain as well as an engineering team in India. To finance its growth, it has raised a total of £387m in equity finance, which supported R&D, expansion, and the launch of its growth lending product in 2023. Although increased interest rates and inflationary pressures have created a tougher fundraising market, Davies sees this as a potential advantage for Allica. “Fortunately for us, we don’t need to raise more capital. However, it may open up opportunities for well-priced acquisitions.”

Looking at the broader banking industry, banks still face significant headwinds. Davies highlights the impact of financial crime and regulatory shifts, particularly the revisions to payment services regulation (PSR). Amendments to the reimbursement scheme will now require banks to reimburse victims of authorised push payment (APP) fraud starting in October 2024. Amendments to PSR will be “very important for us,” Davies notes, especially as Allica continues to grow and expand its current account offerings.

Allica’s focus on strategy, execution, and purpose has driven notable success, recognised in its features in Deloitte’s Technology Fast 500 EMEA (2023) and The Sunday Times 100 (2024). The bank pairs its tech-forward approach with the human touch of experienced relationship managers who understand the complexities of SMEs. “We feel a strong sense of purpose as a business because established SMEs account for a third of jobs in the economy and are often at the heart of local communities in key towns around the UK,” says Davies. The prospect of an exit is secondary to Allica’s broader goal: “We’re just focused on building an excellent business and serving our customers as best as we can. If we do that right, we’ll be well positioned for whatever comes next,” says Davies.