Strategy and leadership: Allica Bank on the challenges of scaling a fintech bank
Strategy and leadership: Allica Bank on the challenges of scaling a fintech bank
Addressing the needs of mid-sized businesses underserved by traditional banks, Allica Bank has a long-term view to become a key player in the global financial services industry.
We spoke to Conrad Ford, Chief Product & Strategy Officer at Allica Bank, to understand how Allica Bank became the UK’s fastest growing company. Here, Conrad walks us through Allica’s strategic approach, the challenges of scaling a fintech bank, and his vision for the future as they set their sights on the next stage.
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Can you describe the process of founding Allica bank?
Setting up a bank is no small feat. The first hurdle we had to navigate was securing a banking licence, which required us to demonstrate our ability to maintain strict financial controls, ensure robust governance, and adhere to stringent regulatory standards set by the Prudential Regulation Authority (PRA). This involved submitting detailed business plans, capital adequacy assessments and risk management frameworks, all of which were subject to intense examination.
At the same time, we were building the bank from the ground up. This meant designing a technology infrastructure capable of delivering a seamless digital banking experience, developing innovative products specifically tailored to our SME audience, and creating a customer service framework that prioritised accessibility and responsiveness.
What did your funding journey look like, and was it difficult to secure?
Securing funding was a multi-phase process that evolved as the bank matured. In the initial stages, we were fortunate to secure backing from a private equity firm, which provided the crucial support needed to navigate the rigorous licensing process. This investment was what allowed us to build our infrastructure and begin developing our banking products.
Later, we sought further investment to fuel our growth. In 2022, we successfully attracted funding from TCV, a leading growth equity investor based in the US who are well known for their expertise in identifying high-growth potential companies. TCV’s portfolio includes prominent names like Spotify and Airbnb, so securing their backing was a huge encouragement, particularly given the challenging investment climate at the time.
What strategies did you use to scale up revenue and reach a point of sustainable growth?
The primary revenue stream for banks is lending, so we directed our efforts towards establishing a strong presence in this area from day one. A key part of our strategy was leveraging brokers and professional intermediaries who specialise in connecting SMEs with the right financing. This approach allowed us to efficiently reach a wide audience without the high costs associated with traditional marketing and sales. These intermediaries played a crucial role in generating revenue early on, helping us to establish a solid market presence.
We were also committed to ensuring our growth was both profitable and scalable. Instead of chasing speculative or flashy growth tactics, we focused on building a business model grounded in solid economic fundamentals. This meant careful financial planning and maintaining tight control over expenses. Our disciplined approach to profitability and efficiency not only spurred rapid growth but also set the stage for long-term stability. The proof of that stability is in the numbers – we’ve achieved 537% average annual growth over the last three years, with £191 million in sales in 2023. We’ve also been officially named as the fastest growing company in the UK, topping The Sunday Times 100 for 2024.
What was a key challenge faced during the scale up process?
One of the biggest challenges we faced early on was talent acquisition. In those early days, attracting and retaining the right people was critical, but it was a fiercely competitive market. We had to work hard to build a strong employer brand that would resonate with top talent.
To address this, we focused on building a culture that not only attracted the right people but kept them engaged long-term. Our leadership team took the initiative to refresh our company values, making sure they were more than just words on paper. We ensured these values – centred around speed, collaboration, customer-centricity, and accountability – were embedded into everything we did. We believed in building a company where everyone, from the top down, felt responsible for the bank's success, and as we grew, this strong cultural foundation became a competitive advantage, helping us retain talent and maintain agility in the face of rapid expansion.
You’re a leader in a rapidly scaling fintech. Who do you turn to for advice?
Having a strong network of advisors and mentors is absolutely essential. At Allica, we’re lucky to have some truly exceptional minds guiding us. One of our key advisors is the former CMO of one of Silicon Valley’s great startups – his insights into scaling and marketing have been incredibly useful for us, especially as we work on refining our own growth strategies and expanding our market presence.
Our board members also play a crucial role. Their collective experience includes a track record of guiding companies through critical expansion phases, which involves navigating challenges such as market entry, scaling operations, and optimising organisational structure.
On top of that, both our CEO and I have strong networks within the fintech space. These connections, built from previous ventures and industry experiences, act as an informal but vital support system. Whether it’s bouncing around new ideas or getting feedback on our strategies, these interactions help keep us on track and informed.
What’s next for Allica Bank?
Our immediate goal is to expand our market share within the UK, aiming to increase the proportion of SMEs who view us as their primary bank. Currently, less than half a percent of our target market considers us their main banking partner. We aspire to grow this to 10%, a target that would require us to scale our operations substantially, potentially increasing our size by twenty-fold within the UK market.
International expansion is also a possibility, though it is still in the planning stages. We are exploring opportunities to enter new markets, but this will be approached with careful consideration. The focus remains on solidifying our position in the UK while laying the groundwork for future international growth.
What advice would you give to other business leaders looking to achieve sustainable growth?
For me, it’s all about people. Focus on hiring and nurturing the right team – and particularly the right managers. Managers who lead from the front, value action over words, and are committed to making real progress are invaluable for business growth. Surround yourself with people who can take ownership, execute plans with precision, and adapt to changes swiftly.
Equally important is staying laser-focused on your core business model. Too many companies get distracted by shiny opportunities or speculative growth strategies, but it’s crucial to be clear on where your value lies and double down on it. At Allica, we’ve maintained a relentless focus on our customer segment, knowing that scaling sustainably meant building on strong economic fundamentals rather than chasing hype.
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