Atom Bank raises £83m, says more to come
03 March 2017 | 10556 views | 1
App-based bank Atom is raising another £83 million from existing investors, including Spain's BBVA, as it builds up a war chest to take on Britain's high street giants.
BBVA's contribution is £29.4 million, which keeps its stake at 29.5%, the amount acquired for £45 million in late 2015.
Woodford Investment Management, Toscafund Asset Management and others contributed to the funding, which brings the total capital raised by Atom to £219 million. More funding is expected in the "near future".
Led by experienced bankers in CEO Mark Mullen and chairman Anthony Thomson, the challenger received its banking license in June 2015 and launched operations in April 2016, offering two fixed-saver accounts and secured business lending for SMEs.
Since then, it has been building up its product range, recently launching a mortgage offering, with current accounts, debit cards, overdrafts and instant access savings, all in the pipeline.
All products are serviced through the firm's app, with modern technology such as face and voice biometrics, and machine learning technology at the heart of a system promising to shake up the traditional, branch-based retail banking world.
Says Thomson: “We are very pleased with the response we have had from investors. Our customers benefit from the backing of highly reputable investors who are supportive of what we are doing. This is a great vote of confidence in our growth prospects and plans for the future.
"With the work we have done so far we are just beginning to see how transformational our new approach to banking can be. There is so much more to come from Atom in the coming months and years."
Javier Rodríguez Soler, global head, strategy and M&A, BBVA, adds: "Atom has a lot of promise, with tremendous opportunities for growth. It allows BBVA to further its transformation and maintain its commitment to the British market."