UK-based SME Bank Allica has received a banking licence from the Prudential Regulation Authority (PRA).
Allica aims to aid SMEs with their banking needs by utilising two principles; tailored support and financial expertise.
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The new bank will be regulated by both the PRA and the Financial Conduct Authority (FCA). As a result, it is preparing for its full launch. It will offer loans, savings, payment services and asset finance.
Mark Stephens, Chief Executive Officer, Allica, said: “The banking licence is an important milestone in our ambition to offer SMEs a genuine banking alternative. We built Allica specifically for businesses to realise their aspirations to advance. Allica will offer hands-on support from finance experts who are fully committed to providing each customer with tailored business solutions. I’m very much looking forward to the next exciting phase of launch.”
Allica also appointed John Maltby as Chair of the Board of Directors.
John Maltby, Chair, Allica, said: “I’m delighted to join the Allica team at such an exciting and important time as Allica receives its banking licence. The SME market in England and Wales continues to be underserved and changing customer needs and behaviours mean that existing banking propositions sometimes are less relevant to owner-managers of SMEs.”
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By GlobalDataBanking licences aplenty
Australian neobank Xinja has also obtained a banking licence. It gained its from the Australian Prudential Regulation Authority (APRA) to foray into the country’s retail banking sector that is currently dominated by the “Four Big” lenders.
The APRA approval will allow the online-only banking firm to operate as an authorised deposit-taking institution (ADI) without restrictions under the Banking Act 1959.
In December last year, Xinja Bank was licensed by APRA as a restricted ADI.
Xinja’s entire banking system is cloud-based, while the required software and storage is offered by technology firm SAP.
Xinja co-founder Eric Wilson said that the neobank will roll out transaction accounts on 9 September. It will soon launch savings accounts and lending products in the first quarter of next year.
