Allica Bank, the SME challenger bank, has raised over £1 billion in deposits from business and personal savers.

Allica provides a full range of credit and payment services to established, growing SMEs. It launched in March 2020 and concluded a £110 million Series B funding round in November last year, alongside an agreement to acquire c.2,000 SME customers and c.£0.6 billion of associated SME lending from AIB Group (UK) Plc.

Alongside launching its own range of personal and business savings accounts, it has partnered with Flagstone, which has enabled Allica to become the primary UK savings account partner for global fintech Revolut’s ‘Vaults’ product, and digital savings app Chip.

Allica has also partnered with investment management platform Hargreaves Lansdown.

Richard Davies, CEO of Allica Bank, said: “It’s fantastic to have reached this milestone so quickly in Allica Bank’s journey. Our goal has always been to harness our technology to create a diversified and scalable model for raising deposits to fund our business lending. By partnering with Revolut, Chip, Flagstone and Hargreaves Lansdown, and reaching £1bn in deposits, we’ve made huge progress over the last year.

“But this has to be backed up with an unbeatable experience for both our customers and partners. And it’s a testament to the hard work of the whole Allica team that we have continued to receive such positive feedback as our deposit book increases. This sustainable approach puts us in an incredibly strong position to continue our growth over the coming years.”