Allica Bank Business Account Review: Pros, Cons & Features

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Allica Bank is a relatively new player in the banking industry, having gained its banking licence in 2019. As a challenger bank, it aims to provide innovative and competitive services to small and medium-sized businesses. In this review, we will explore the pros, cons, and features of Allica Bank’s business account to help you decide if it is the right choice for your business.

Features of Allica Bank

Allica Bank is a digital bank that offers a range of features designed to support small and medium-sized enterprises (SMEs). Some of the key features of Allica Bank include:

  • Business Rewards Account: A UK current account designed for established SMEs, with no monthly fees and free bank payments.
  • Free transactions: Allica Bank’s Business Rewards Account comes with free transactions, making it a cost-effective option for businesses with frequent transactions.
  • Cashback on eligible card purchases: The account offers 1.5% cashback on eligible card purchases, providing businesses with a way to earn rewards on their spending.
  • Instant savings pot: Allica Bank’s instant savings pot offers 4.33% AER on idle money, providing a competitive interest rate for businesses with excess funds.
  • Local relationships: Allica Bank combines modern technology with local relationships in the community, providing businesses with expert banking support and guidance.
  • Allica Bank is a regulated financial institution, ensuring that it operates in a responsible and secure manner.
  • Allica Bank is registered in England and Wales with company number 07706156, and its registered office is located at 4th Floor, 164 Bishopsgate, London EC2M 4LX.

Pros

  • Competitive Fees: Allica Bank offers competitive fees compared to traditional banks. For example, it charges no monthly fees, no overdraft fees, and no foreign transaction fees.
  • Easy Account Setup: Opening an Allica Bank business account is quick and easy. You can apply online and receive your account details within a few days.
  • Mobile Banking App: Allica Bank’s mobile banking app is user-friendly and allows you to manage your account, make payments, and check your balance on the go.
  • Real-Time Payments: Allica Bank offers real-time payments, which means you can make and receive payments instantly.
  • Personalized Service: Allica Bank prides itself on its personalized service, with a dedicated account manager assigned to each business.

Cons

  • Limited Branch Network: Allica Bank has a limited branch network, which may make it difficult for some businesses to access physical banking services.
  • Limited ATM Network: Allica Bank has a limited ATM network, which may result in additional fees when using ATMs outside of its network.
  • Minimum Balance Requirements: Allica Bank requires a minimum balance of £500 to avoid fees, which may not be suitable for all businesses.
  • Limited Credit Facilities: Allica Bank’s credit facilities are limited, which may not be suitable for businesses that require large loans or overdrafts.

Features

Here are the features:

  • Business Current Account: Allica Bank offers a business current account with a range of features, including real-time payments, mobile banking, and online banking.
  • Savings Account: Allica Bank offers a business savings account with a competitive interest rate and no fees.
  • Credit Facilities: Allica Bank offers credit facilities, including overdrafts and loans, to help businesses manage their cash flow.
  • Insurance and Protection: Allica Bank offers insurance and protection products, including business insurance and employee benefits.

Where Allica Bank business account stands out

Allica Bank’s business account stands out in several ways. Here are some key points:

  • Allica Bank has an impressive 4.4-star rating on Trustpilot from over 850 reviews, with 76% of customers rating them 5-star. The Allica app is also highly rated, with 4.8 out of 5 stars on the App Store.
  • Allica Bank’s Business Rewards Account has no monthly fees, making it an attractive option for small and medium-sized enterprises (SMEs).
  • Allica Bank offers free bank payments, which can help businesses save money on transaction fees.
  • Allica Bank offers a range of account options, including easy access, notice, and fixed-rate accounts, which can help businesses choose the best account to suit their needs.
  • Allica Bank’s fixed-rate accounts offer competitive interest rates, with some accounts offering rates as high as 5.00%.
  • Allica Bank’s Business Rewards Account is designed for established SMEs, which can be a benefit for businesses that have a established track record and are looking for a dedicated business account.
  • Allica Bank has a team of expert relationship managers who provide personal support to small and medium-sized businesses in their local communities, which can be a valuable resource for businesses that need guidance and support.
  • Allica Bank is regulated by the Financial Conduct Authority and the Prudential Regulation Authority, which provides an added layer of security and protection for customers.

Conclusion

Allica Bank’s business account is a great option for small and medium-sized businesses that require a competitive and innovative banking service. While it may not have the same level of branch network or ATM coverage as traditional banks, its competitive fees, easy account setup, and personalized service make it an attractive option. 

However, businesses with limited credit requirements or those that require large loans or overdrafts may find Allica Bank’s credit facilities limited.

FAQs

What is the minimum balance required to avoid fees?

The minimum balance required to avoid fees is £500.

What is the interest rate on the business savings account?

The interest rate on the business savings account is competitive and subject to change.

Can I apply for a business loan or overdraft?

Yes, Allica Bank offers credit facilities, including overdrafts and loans, to help businesses manage their cash flow.

What is the process for opening a business account?

You can apply for a business account online and receive your account details within a few days.

What is the mobile banking app like?

The mobile banking app is user-friendly and allows you to manage your account, make payments, and check your balance on the go.

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