“Can a UK SME-focused challenger bank use embedded finance (B2B BNPL, invoice finance) and deep accounting integrations to capture 10% of the established SME market by 2028?”
Founded in 2019 as a UK challenger bank with a banking licence, Allica Bank focused exclusively on established SMEs (5–250 employees) underserved by high-street banks, differentiating via dedicated relationship managers backed by digital infrastructure. The bank grew rapidly through commercial mortgages, asset finance, and savings products, reaching £2bn in loans and £2.6bn in deposits by end-2023. In 2025, Allica moved beyond pure-balance-sheet lending by acquiring Kriya, entering the embedded finance market with B2B BNPL and invoice finance distributed through third-party platforms — a structural shift from direct bank to embedded-finance-enabled lender.