"We are thrilled to be welcoming AIB’s SME lending customers to Allica Bank, following AIB’s decision to withdraw from the GB SME lending market."
Allica Bank has made its first major acquisition with an agreement to acquire £0.6 billion of associated lending from AIB Group following its exit from the SME market in Great Britain.
2,000 SME borrowers will transfer to Allica Bank, which launched in March 2020.
Allica says the acquisition of AIB’s SME lending book in Great Britain will fuel the development and expansion of its service and proposition, including wider lending products.
Post completion of the transaction, Allica Bank is expected to have a combined total lending book of more than £1 billion.
Richard Davies, CEO of Allica Bank, said: “We are thrilled to be welcoming AIB’s SME lending customers to Allica Bank, following AIB’s decision to withdraw from the GB SME lending market.
“We’re working closely with AIB to ensure a smooth and seamless transition for AIB customers who we look forward to providing with a secure and sustainable home. We’re proud of the strong technology and tailored personal service we’re able to offer Allica Bank customers and are delighted to be able to extend this service to AIB’s customers.
“Allica Bank is fast becoming the SME lender of choice, not least due to the investment we continue to make in developing both our direct relationship with SMEs and via our broker channel. This acquisition enables us to support and scale even more of Britain’s established SMEs and growth companies at a time when SMEs are looking for more tailored support from their bank.
“As we said at our recent trading update, we’re laser focused on growing our lending to multiple billions over the coming years as we seek to support the underserved and overlooked SMEs across the UK.”