SME fintech lender Allica has said that it reached profitability in close to record time and has been profitable on a monthly basis for each of the last three months.

The bank only opened its door to lending in March 2020, but has already lent over £1 billion to mid-sized SMEs and now has monthly loan originations reaching close to £1 billion on an annualised basis.

The bank has been profitable on a monthly basis since June 2022, just over two years since opening its doors to lending in March 2020.

Allica is focussed on serving established and ambitious mid-sized SMEs, typically with 10 to 250 staff. These businesses represent over 30% of all UK jobs and GDP but are underserved by traditional banks, while neo-banks focus on micro businesses and consumers.

Richard Davies, CEO of Allica Bank, 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’ll continue to push to support SMEs as we grow over the years ahead.”