Allica Bank selected for new Scale-up Unit to supercharge fast-growing fintechs
Allica Bank is one of a select few firms invited to participate in the Prudential Regulation Authority (PRA) and Financial Conduct Authority’s (FCA) newly launched Scale-up Unit, a joint regulatory initiative designed to support fast-growing, innovative financial services firms to scale, invest and create high-skilled jobs across the UK.
The Scale-up Unit, launched by the chancellor as part of the UK government’s Financial Services Growth and Competitiveness Strategy, will provide scaling firms with dedicated regulatory resource to support their growth ambitions. It is designed to help financial services firms that are already scaling within their markets and are in a period of sustained growth to navigate complex regulatory challenges.
The scale-up built for growth
Allica is a challenger bank focused specifically on serving established SMEs with between 5 and 250 employees – an overlooked segment of the economy that generates a third of the UK’s GDP.
Since first opening its doors in 2020, Allica’s impressive growth means its total outstanding lending to established SMEs has now reached £3.5bn. Named the UK’s fastest growing company in 2024, and the fastest growing UK fintech ever in 2023, Allica is building on strong momentum to achieve its target of a 10% share of the established SME market by 2028.
Allica has been at the forefront of calls from across the fintech and challenger banking sector for the creation of a Scale-up Unit and has engaged closely with both the PRA and the FCA on its design.
Participation in the Scale-up Unit will enable Allica to access regulatory support across key areas including out-of-cycle capital reviews, early-stage engagement on new product launches and regulatory processes, and enable Allica to provide views on policy proposals that impact challenger banks as they grow.
This additional support will enable Allica to continue to grow and meet the needs of the UK’s established SMEs – helping these businesses get more from their bank through a mix of powerful technology, human support and products designed to give businesses real value.
Richard Davies, CEO of Allica Bank, said: “Allica are delighted to be included in the initial Scale-up Unit cohort, having led the call for a dedicated regulatory unit to support firms as they scale. The Unit should provide banks like Allica with more capital certainty and more regulatory support to boost lending to the established SMEs that power the UK’s real economy.
“Done well, the Scale-up Unit can support the government’s objective to make the UK the location of choice for financial services firms to invest, innovate and grow.”
Participation in the Scale-Up Unit does not imply any endorsement by the FCA or PRA of Allica Bank or its business model. Further information on the Scale-Up Unit is available on the FCA and Bank of England websites.