Scottish challenger for SMEs Alba lands banking licence
Alba, a Scottish bank focusing on small and medium-sized enterprise (SME) lending, has secured a banking licence from the UK’s Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
Alba lands restricted banking licence
The firm has been granted an Authorised with Restrictions (AwR) licence, allowing it to begin mobilisation. The bank says it has also raised sufficient capital to support its development throughout the mobilisation phase “and beyond”.
The Scottish challenger was founded five years ago in Glasgow and had originally intended to be operational by 2020 before the onset of the Covid-19 pandemic delayed its plans.
Since then, the bank says it has “worked closely” with both UK regulators to develop its offering, processes and systems to secure its banking licence. It claims to be the first of its kind in Scotland.
Alba CEO Rod Ashley says the Alba team have built a “comprehensive business plan”.
“SMEs have long been regarded as the lifeblood of our economy but haven’t always received access to appropriate levels or forms of finance,” he says.
“Alba is an opportunity to design a bank specifically with these businesses in mind, helping them to realise their true potential and fulfil their vital role in enhancing both employment and economic growth.”
Alba chair Graeme Jones says the challenger’s establishment will support both Scottish banking and financial services as well as the Scottish economy, “where the majority of our working population are employed in SME businesses”.
