Allica Bank – the digital relationship bank dedicated to serving established British businesses – has said personal and business savers have now trusted it with over £2 billion of deposits.

The announcement comes as part of an ambitious campaign to improve rates for savers by the bank, which saw it grow its deposit base by a third in the first five months of the year alone. This activity included being the first UK bank to offer a 5% AER return on its one-year and 18 month fixed-term savings accounts.

Allica says a mixture of investing in its own online banking platform, mobile app and operations – alongside innovative partnerships with the likes of Revolut and Chip, and established players such as Hargreaves Lansdown and Flagstone – meant it has been able to successfully and quickly scale its deposit-raising efforts in line with the changing needs of the business.

It reported, too, rapid growth in the amount of deposits held in its new business current account. Launched late last year, the ‘Business Rewards Account’ offers businesses cashback rewards with no monthly fees, along with a market leading 3% AER instant-access Savings Pot.

Allica hit the £2 billion milestone just weeks after publishing its 2022 results, which confirmed it had become one of the fastest UK fintechs to become profitable. In what it called a ‘transformational year of growth’, the bank achieved 534% growth in revenue and a 139% increase in its total lending to established businesses, totalling £1.35 billion.

Talking about the announcement, Allica Bank’s CEO Richard Davies said, “As we look to become the UK’s most-recommended business bank, it’s humbling that so many personal savers and British businesses have chosen Allica Bank as a home for their hard-earned savings. It’s a testament to the work our team has done to invest in our proprietary technology and expand our strong partnership programme that we’ve been able to scale in such a way. We want to continue to reward British savers, when too many banks continue to pay minimal interest.

“I’m pleased, too, that the growth Allica experienced in 2022 has showed no signs of slowing down. My ambition is to penetrate 10% of the banking market for established businesses in the next three years. This will really make people sit up and take notice, and force them to finally invest in a segment that has otherwise been largely ignored by the big banks for too long.”