The finance provider has been working with the two regulatory bodies over the past five years — since its launch in 2018 — to develop its proposition, processes and systems to secure the banking licence.

Alba was founded by Clyde Blowers’ chairman and CEO, Jim McColl, in order to support SMEs and provide greater face-to-face interaction and engagement by combining a relationship-driven banking model with modern banking technology capabilities.

The firm will initially operate from two office hubs in Glasgow and London, with longer-term ambitions to establish commercial offices in regions across the UK.

Rod Ashley, CEO at Alba, said: “This is unquestionably a landmark moment in our journey so far. 

“I am incredibly proud of the team who have steadfastly believed in our mission of launching a new SME-focused bank and have worked tirelessly to build a comprehensive business plan, which has allowed us to receive our licence from the regulators.

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“SMEs have long been regarded as the lifeblood of our economy, but haven’t always received access to appropriate levels or forms of finance. 

“Alba is an opportunity to design a bank specifically with these businesses in mind, helping them to realise their true potential and fulfil their vital role in enhancing both employment and economic growth.”

Graeme Jones, chairman of Alba, commented: “I am absolutely delighted that Alba has been granted its licence with restrictions and now enters into full mobilisation. 

“The establishment is not only important to the Scottish banking and financial services community, but also to the Scottish economy.

“The bank has a dynamic and ambitious agenda which, through time, will see it operating across the UK regions from its initial bases in Glasgow and London.

“While we will be a high-tech SME bank utilising the best financial technology available to serve our clients, we also place equal value on our customer relationships — we need their 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.”