In a financial landscape where traditional high-street banks often leave established customers feeling underserved, a new challenger bank is stepping up to reward everyday banking activities. Allica Bank, a relatively new name in the business banking sector, is specifically targeting established small and medium-sized enterprises (SMEs) with an innovative account that blends everyday spending benefits with attractive savings opportunities.
Addressing the Gap in Business Banking
For many established businesses, everyday banking has become a source of frustration rather than support. Traditional banks have increasingly reduced branch access, moved services online, and offered interest rates that frequently fail to keep pace with inflation. This leaves numerous loyal customers with accounts that function adequately but do not actively incentivise or reward their regular usage.
Allica Bank aims to fill this void by focusing on SMEs that may feel overlooked by both digital-only challenger banks and the largest high-street institutions. Its Business Rewards Account is designed to combine core banking functions with tangible incentives for card spending and savings, though, as with all financial products, the benefits hinge on how the account is utilised and whether a business meets the specific eligibility criteria.
Key Features of the Business Rewards Account
One standout feature that is likely to appeal to regular card users is the cashback offering of up to 1.5% on eligible card spending. There is no stated spending cap, and this cashback applies across a broad spectrum 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 that pays up to 4.08% AER (Annual Equivalent Rate). While these rates are variable and subject to change, they provide businesses holding surplus cash with a viable method to earn interest while maintaining access to their funds. Additional rate enhancements may be available for regular transfers or for those switching accounts using the Current Account Switch Service, where applicable.
Integration and Support for Modern Businesses
Allica's mobile app enhances operational efficiency by connecting seamlessly with popular accounting platforms such as Xero, Sage, and QuickBooks. This integration allows businesses to synchronise transactions, manage payroll, and monitor cash flow from a single, convenient location.
Employers can further streamline their financial management by issuing employee cards, setting customised spending limits, and controlling permissions, which aids in day-to-day expense 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, moving beyond reliance on purely automated assistance.
Practical Account Management
Opening an account typically takes under two weeks, with no requirement to visit a physical branch. However, approval times and availability are dependent on individual business circumstances, so prospective customers should plan accordingly.
For businesses seeking to optimise their financial operations, this account represents a compelling alternative, offering both rewards and robust support in an increasingly digital banking environment.
