Atom Bank, a mobile application-based bank headquartered in Durham, disclosed that it has amassed more than £100M (approximately €114M) in fresh equity capital from steadfast shareholders BBVA, Toscafund, and Infinity Investment Partners.
The injection of capital will empower Atom Bank in the UK to expedite the expansion of its balance sheet and develop an even more attractive offering for savers, homeowners, first-time buyers, and SMEs. This proposition aims to provide a faster, more accessible, and better-value service compared to competitors and traditional high street banks.
Up to this point, Atom Bank has successfully loaned over £4 billion to UK homeowners and more than £1 billion to small businesses since its inception.
Mark Mullen, CEO of Atom, expressed, “I’m thrilled by this strong affirmation of confidence in Atom from our investors. Their continued support is a tremendous boost.”
Reports indicate that Atom Bank secured new funding, valuing the company at £362 million (approximately €415 million), marking a decrease from its £435 million valuation reported in February 2022.
Atom Bank: Revolutionizing Banking for the Better
Established in 2014 and under the leadership of CEO Mark Mullen, Atom operates as an app-based bank with the primary aim of delivering a borrowing and saving experience that is swifter, more straightforward, and offers better value compared to other institutions.
The bank is authorized by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and PRA. Atom is striving for industry-leading cost efficiency and returns as it pursues substantial growth.
Atom recently reported its inaugural full year of operating profit, showcasing the potential of its cost-effective and scalable business model. In the fiscal year 2023, the bank recorded a 62% revenue growth, a doubling of customer numbers to 224,000, and an increase in savings deposits to £6.6 billion.
Exceeding the operating profit from the current financial year, the bank’s current quarterly performance indicates an annualized net interest income of over £100 million and an operating profit surpassing £25 million.
“We are experiencing strong and sustainable growth at Atom. As a prudent bank, we have a strong history of responsible and successful lending. We maintain a lean business model and rigorously control our costs. Our commitment to providing consistently excellent value to our customers and treating them fairly is our priority,” mentioned Muller.
The bank is also recognized for its exceptional customer service, boasting five-star ratings on TrustPilot, iOS, and Android platforms, and an NPS score in the high 80s.
“This funding will be utilized to drive growth and foster the expansion of our franchise. The need for better outcomes and superior banking experiences for United Kingdom customers remains paramount. Our vision, established at the inception of the company, remains as relevant today: revolutionize banking for the better, for the benefit of all,” stated Mark Mullen.