Allica Bank SME lending contributes £5.8bn to UK GDP in 2024: report
Lending by Allica Bank to established small and medium-sized enterprises (SMEs) in Britain contributed £5.8bn ($7.6bn) to GDP in 2024.
The GDP contribution included £2.2bn direct; £1.8bn indirect; and £1.8bn induced.
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Allica Bank disclosed this data in its newly commissioned report from Oxford Economics.
As per the report, the bank’s lending generated £1.4bn in tax revenues and supported more than 84,000 jobs in the country, one in every 440 jobs.
Allica Bank has expanded its operations since it began five years ago and issued its first loan in March 2020.
Last year, it had provided more than £1.5bn in loans to SMEs, with cumulative lending exceeding £3bn by that year end.
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By GlobalDataThis figure has now reached more than £3.5bn this year so far.
Lending has supported employment across various regions, including nearly 10,000 jobs in the North West, 8,900 in the West Midlands region, and 7,700 in the East Midlands.
The effect on employment share was highest in Wales and the North East.
Allica Bank’s approach includes technology combined with a relationship manager team focused on understanding SME requirements.
The team is expected to double its size within the year.
The release of this research follows a period of expansion for Allica Bank, which recently completed its third acquisition by purchasing UK embedded finance company Kriya.
This move is intended to help the bank penetrate 10% of the established SME finance market by 2028-end and aims to facilitate an initial £1bn in working capital finance for SMEs.
Allica Bank CEO Richard Davies said: ”Established SMEs are the engine of Britain. Yet for too long they’ve been underserved by the incumbent banks and I’m delighted to see this change as challengers like Allica support them in ways which really make a difference.
“Every £1m in lending issued by Allica enables our established SME customers to contribute £2.4m to UK GDP, provide 35 jobs and £600,000 in tax revenue. That’s a direct impact – creating jobs, unlocking investment and helping power growth across all corners of the country.”
In April 2025, Allica reported a 55.2% increase in profit after tax, reaching £29.8m ($39.54m) in 2024, compared with £19.2m in 2023.
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