finance

Scotland's newest business bank nears launch with £5 million funding round



A new Scottish business bank is set for launch with a £5m Series A funding round, in collaboration with Seismic Venture Partners.

Headquartered in Scotland, Alba will be a new digital-first bank supporting small and medium-sized enterprises (SMEs) in Scotland and across the UK.

Already backed by several Scottish business leaders, including Clyde Blowers Capital founder Jim McColl, the soon-to-be challenger bank is based in Glasgow.

A statement noted that the most recent British Business Bank SME Business Finance Survey found that 67% of SMEs do not receive adequate support from their bank and 76% have received no contact with a relationship manager.

Alba called this a significant opportunity – given there are more than 334,000 SMEs in Scotland – with many of them being without access to dedicated relationship bankers or digital IT infrastructure.

Alba’s chief executive Rod Ashley commented: “The association with Seismic Venture Partners allows us to open up this unique investment opportunity to a wider range of investors – we are really excited by the opportunity to broaden our investor base to local people in the local areas we are looking to develop and grow into.”

Alba’s origins come from Airdrie Savings Bank, which was the sole remaining trustee savings bank in the UK before closing its last two branches in April 2017. Ashley joined Airdrie as its chief executive in December 2012.

Cornerstone investor Jim McColl, added: “The unique Alba banking model – referred to as ‘high touch, high tech’ – provides a new form of relationship business banking, combining fintech with human relationships.

“A focus on understanding business needs and applying human judgement to modern day analytical tools.”

Don’t miss the latest headlines with our twice-daily newsletter – sign up here for free.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more