In a financial landscape where many established customers feel underserved, a new challenger bank is stepping up to reward everyday banking for small and medium-sized enterprises. Allica Bank, focusing on businesses that may be overlooked by both digital-only newcomers and large high-street institutions, has launched an account designed to combine practical banking with tangible incentives.
Addressing the Gap in Business Banking
For numerous business owners, everyday banking has become a source of frustration. Traditional banks have reduced branch access, moved services online, and often offer interest rates that fail to keep pace with inflation. This leaves many established customers with accounts that function adequately but do not actively reward their loyalty or usage.
Allica Bank aims to change this dynamic by targeting established SMEs that seek more from their banking provider. Its Business Rewards Account is crafted to merge everyday transactional needs with benefits for card spending and savings, though, as with all financial products, advantages depend on how the account is utilised and whether a business meets specific eligibility criteria.
Key Features of the Allica Bank Account
One standout feature is the cashback offer of up to 1.5% on eligible card spending. There is no stated spending cap, and cashback applies across a broad range of purchases, including supplier payments and business travel, subject to the account's terms and conditions.
Alongside this, the account includes an instant-access Savings Pot paying up to 4.08% AER. While rates are variable and may change, this provides businesses holding surplus cash with an opportunity to earn interest while maintaining accessibility to funds. Additional rate boosts might be available for regular transfers or for switching via the Current Account Switch Service, where eligible.
Integration and Support
Allica's mobile app integrates seamlessly with popular accounting platforms such as Xero, Sage, and QuickBooks. This allows businesses to sync transactions, manage payroll, and monitor cash flow from a single interface, enhancing operational efficiency.
Employers can issue employee cards, set spending limits, and control permissions, which aids in day-to-day expense management and financial oversight.
Unlike many app-only banks, Allica assigns each customer a dedicated relationship manager. This ensures access to human support for queries related to the account, lending options, or general banking needs, rather than relying solely on automated assistance.
Account Opening Process
Opening an account typically takes under two weeks, with no requirement to visit a physical branch. However, approval times and availability depend on individual business circumstances, ensuring a tailored approach to each application.
Related Business Offers
In other business news, Vodafone Business has introduced a time-limited broadband offer, providing small businesses with twelve months at half price on selected fibre packages. This deal, available until March 4, targets firms with one to nine employees, including home offices and startups. Entry-level options start at £11.50 per month for the first year, excluding VAT, with clear communication on future price rises to aid budgeting.
Additionally, Parcel2Go is offering a promotion for online sellers, providing £25 of free postage credit with no monthly fees or contracts required, as highlighted by consumer writer Gareth Butterfield.
