The license was granted by the UK Prudential Regulatory Authority and the Financial Conduct Authority on the 9th of March, allowing it to move into mobilisation with restrictions. During this time of moblisation, the aggregate amount of deposits held by the firm at any time can not currently exceed £50,000. 

“Alba’s establishment is not only important to the Scottish banking and financial services community, but also to the Scottish economy,” said Graeme Jones, chairman of Alba.

SMEs account for roughly 60% of employment in the private sector according to a report from the UK parliament, SMEs making up 99% of private businesses in the UK. 

In Scotland alone, there were over 342,000 SMEs in operation during the last small business survey taken by the Scottish government, accounting for 44% of total Scottish employment. 

In preparation for its launch, Alba raised £5 million in Series A funding led by Seismic Ventures in February this year. Now operational, Alba will offer expertise and insight to customers, as well as direct lending to SMEs.

Following their Series A, Alba says it has raised sufficient capital to support the mobilisation phase and beyond, eyeing expansion of commercial hubs in regions across the UK in the future. Alba already has hubs in both Glasgow and London. 

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In opposition to traditional banks, Alba is focused on developing a customer-centric experience. According to Alba, commercial banks have industrialized their operating model by reducing customer-facing personnel. 

“We need (the customer’s) voice at the very heart of the bank to ensure we stay relevant, understand their changing needs and to provide a more personalised and bespoke service,” said Jones.

Alba was founded in 2018 by Clyde Blowers’ chairman and CEO, Jim McColl when he identified the need to create an SME focused bank with modern banking capabilities, with face-to-face interaction and engagement with their banks.