Allica Bank has been selected to take part in a new joint regulatory initiative aimed at supporting fast-growing financial services firms as they scale.
The challenger bank is one of a small number of firms invited to participate in the Scale-up Unit, a collaboration between the Prudential Regulation Authority and the Financial Conduct Authority.
The initiative has been launched as part of the chancellor’s Financial Services Growth and Competitiveness Strategy and is intended to help innovative firms navigate regulatory complexity as they expand.
The Scale-up Unit will provide participating firms with access to dedicated regulatory resource, supporting businesses that are already scaling within their markets and experiencing sustained growth. Its focus is on helping firms invest, innovate and create high-skilled jobs across the UK.
THE SCALE-UP BUILT FOR GROWTH
Allica Bank focuses on established small and medium-sized enterprises with between five and 250 employees, a segment that accounts for around a third of the UK’s GDP but has historically been underserved by traditional banks.
Since launching in 2020, Allica has expanded rapidly. Total outstanding lending to established SMEs has reached £3.5 billion, and the bank has previously been named the UK’s fastest-growing company in 2024, as well as the fastest-growing UK fintech in 2023.
Allica has set a target of securing a 10% share of the established SME banking market by 2028.
The bank has been a vocal advocate for the creation of a dedicated Scale-up Unit and has worked closely with both the PRA and the FCA on the initiative’s design.
Participation will give Allica access to regulatory support across areas such as out-of-cycle capital reviews, early engagement on new product launches and regulatory processes, as well as opportunities to contribute views on policy proposals affecting challenger banks as they grow.
According to the bank, the additional support is expected to help it continue expanding its lending and service proposition for established SMEs, combining technology with relationship-based banking and tailored products.
Richard Davies, chief executive of Allica Bank, says: “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.”
The FCA and PRA have stressed that participation in the Scale-up Unit does not imply any endorsement of Allica Bank or its business model. Further details on the initiative are available via the FCA and Bank of England.
