UK-based digital challenger bank Atom Bank, which provides personal and banking services through a smartphone app, has raised a €56 million round from BBVA, Toscafund, Woodford Patient Capital Trust and funds advised by Perscitus LLP. This brings the total amount raised by the company to €500 million.
Founded in 2014, Atom Bank secured a banking license in June 2015, and launched savings accounts and secured business lending for small and medium-sized enterprises SMEs in April 2016. Atom then launched its first mobile mortgage product in December 2016, and has since taken in €2 billion in deposits and lent over €2.7 billion to small businesses and homeowners. The bank’s total lending for homeowners and small businesses has grown by 76% in the past year, and Atom is currently considering up to €22 million in business lending and €11 million in residential mortgage applications each week.
Atom aims to keep its costs low and pass the value back to its customers. Its app is at the heart of the bank, with a 24/7 support team on hand to help with any customer queries through phone, chat, email and social media, working out of their Durham HQ. The new capital will be used to fund further growth and to continue the bank’s investment in technology.
“What’s important to customers is good products, good service and good value so that’s where we’ve spent the majority of our time and energy,” said Mark Mullen, Atom CEO. “We’re growing our team here in the North East and will add 50 new roles this year to help us expand the range of products and services we offer, starting with Instant Access savings in the autumn. More than ever we are convinced of the importance of Atom’s role to drive positive change in UK banking.”
“This latest raise recognizes the enormous progress that we have made on our journey to disrupt UK banking, and is a clear signal of our investors support for our future plans,” said Bridget Rosewell, Chairman at Atom.