Our third episode is with Conrad Ford, Chief Product and Marketing Officer at Allica Bank.

Allica is one of the very few profitable challenger banks worldwide, profitable in just over two years, and without accessing the government backed COVID-lending scheme, which makes it a particularly rare breed. However, Allica is going after different SME sub-segment, more “m” than “s”, and with quite a different philosophy. Allica sees it self as a bank, and firmly believes that’s what it’s customers want from it. There’s no talk of marketplaces, platforms, or other Consulting buzz words, but there is a lot of front line banking experience in the bank’s executive team, including Richard Davies, current CEO, former Oaknorth COO, and Conrad himself, former COO of Barclays’ Innovation Unit.  

It’s a fascinating conversation overall that weaves its way through the distinctive elements of Allica’s strategy, it’s target customers, key competitors, and what the changing economic environment means for fintech, and UK banking landscape overall.

Time stamps as follows:  

00:00: We introduce the podcast and Conrad Ford.  

01:45: What did running a start-up and being COO at Barclay’s Innovation Unit help Conrad bring to Allica.

03:10: What specific SME sub-segment is Allica targeting.

04:40: Why do incumbent banks struggle with this segment.

06:30: Who do Allica see as their primary competitors.

09:44: What does it take in terms of people to build a profitable new challenger bank.

11:44: Allica started life as Civilized Bank, then lost it’s license. What happened there.

13:00: What early technology bets did Allica place.

16:50: What role for non-traditional banking business models / alternative monetization at Allica.

19:50: What, if any, digital value-add services does Allica offer.

22:22: How does Allica compete against accounting software providers and e-comm platers in SME financial services.

25:20: What gives Allica competitive advantage in the commercial property lending market.

31:00: What does the much touted “relationship bank” element of Allica’s strategy entail.

33:45: How did you prioritize roll-out of different self service features.

37:20: How come Allica didn’t access government-backed COVID-lending scheme.

38:50: Conclusion and wrap-up.