Atom Bank, a digital only challenger bank unencumbered by antediluvian legacy technology and a culture the fears change, is part of the emerging sector of Fintech poised to kick brick & mortar banks to the curb. Receiving a UK banking license for their virtual operation in 2015, Atom Bank went on to raise a mere £45 million from BBVA later the same year.
Last summer, Atom Bank revealed it was prepping for another funding round. As Crowdfund Insider reported, this was followed by a Reg D (506b) filing with the Securities and Exchange Commission indicating its intent to raise up to $124 million. The securities filing indicated that Atom was working with Macquarie Capital USA on the offer. The Form D noted that only four states were being involved California, New York, New Jersey and Maryland. Apparently, approximately $124 million has been raised and we can expect an announcement soon, according to a report in BI.
Atom Bank, the UK’s “first bank built exclusively for mobile” rolled out its services to the entire UK last October. In December, Atom Bank said that consumer had deposited in excess of £110 million. Additionally, during the year, Atom Bank released:
- Android and iPhone Apps
- Biometric Tech for authentication and security
- Secured business lending to SMEs
- Received over £100 million in lending applications
- Launched digital only mortgages
Interestingly, it is not just the much talked about Millennials that are embracing digital banking tech. Atom Bank says that the average age of their “savers” is over 50. Atom Bank CEO Mark Mullen sees a real need for a bank that just works, is simple, speedy and less costly. The challenger bank recently announced market-leading savings account stomping on what the traditional banks return. It will be interesting to see what Atom Bank does with this most recent capital injection.