Glasgow-based Alba Bank – the UK’s newest challenger bank dedicated to supporting SMEs – announced that it will partner with Mambu’s cloud banking platform to manage its lending services, as well as its retail and business deposits.
Mambu supports over 260 customers in over 65 countries – including Western Union, Commonwealth Bank of Australia, N26, BancoEstado, Raiffeisen Bank, ABN AMRO, Bank Islam and Orange Bank.
Alba was recently granted its banking licence by the UK Prudential Regulatory Authority (PRA) and the FCA, allowing it to move into mobilisation, during which time it is currently focusing on building out its team, operations and infrastructure.
Founded by Scottish entrepreneur Jim McColl in 2018, Alba Bank was established to provide commercial finance to UK SMEs, which it says remain underserved by the mainstream banks.
“By adopting Mambu’s cloud banking platform, Alba Bank will be embracing a composable approach, enhancing its agility and speed to market, providing a much-needed boost to SMEs,” said Alba Bank.
“Over the last five years, over half (58%) of UK SMEs have been unable to secure any or sufficient funding to cover the needs of their business, on at least one occasion, according to a report by Mambu.
“More than nine in ten (93%) would consider switching lenders if a competitor provided a better service.”
Nick Lawler, Market Director, Northern Europe at Mambu,said: “Now more than ever, the availability of finance is key to the success of all SMEs.
“SME pain points need to be properly acknowledged by banks, as success rates for loan applications are 20% lower than for large enterprises.
“By pivoting to Mambu, along with a growing number of neobanks in the UK, Alba is in good stead as it continues to transform this sector of banking, supporting small and medium-sized businesses to reach their potential.
“We look forward to working with Alba as it supports direct lending to SMEs and fuels economic growth in Scotland and the wider UK region.”
Alba Bank chief technology officer Sandeep Kadam said: “We’re excited to work with Mambu and fully embrace a cloud-first approach.
“Our partnership will enable us to build our products quickly and adapt to ever-changing market demands. At a time when SMEs are being underserved by traditional lenders, speed to market and agility are both crucial.
“Mambu’s ability to offer both will enable Alba to build a great banking experience for our customers.”