A new partnership has been struck for Scotland’s first bank ‘solely dedicated to small and medium sized businesses’.
Alba Bank, founded by Scottish entrepreneur Jim McColl in 2018, with its headquarters in Glasgow, will work with cloud banking platform Mambu to manage its lending services.
The so-called ‘challenger bank’ was established to provide commercial finance to UK SMEs which remain underserved by the mainstream banks.
By adopting Mambu’s cloud banking platform, Alba Bank will be embracing a ‘composable’ approach, enhancing its agility and speed to market, providing a much-needed boost to SMEs.
Over the last five years, over half (58%) of UK SMEs have been unable to secure any or sufficient funding to cover the needs of their business, on at least one occasion, according to a report by Mambu. More than nine in ten (93%) would consider switching lenders if a competitor provided a better service.
Nick Lawler, market director, Northern Europe, at Mambu, said: “Now more than ever, the availability of finance is key to the success of all SMEs. SME pain points need to be properly acknowledged by banks, as success rates for loan applications are 20% lower than for large enterprises.
“By pivoting to Mambu, along with a growing number of neobanks in the UK, Alba is in good stead as it continues to transform this sector of banking, supporting small and medium-sized businesses to reach their potential. We look forward to working with Alba as it supports direct lending to SMEs and fuels economic growth in Scotland and the wider UK region.”
Alba was earlier this year granted its banking licence by the UK Prudential Regulatory Authority (PRA) and the FCA, allowing it to move into mobilisation, during which time it is currently focusing on building its team, operations and infrastructure.
Sandeep Kadam, chief technology officer at Alba Bank, added: “We’re excited to work with Mambu and fully embrace a cloud-first approach. Our partnership will enable us to build our products quickly and adapt to ever-changing market demands.
“At a time when SMEs are being underserved by traditional lenders, speed to market and agility are both crucial. Mambu’s ability to offer both will enable Alba to build a great banking experience for our customers.”
