UK’s Atom Bank Secures £30M to Support Lending, Further Business Growth

Atom Bank, which claims to be the United Kingdom’s “first” app-based bank, has reportedly agreed to terms with BBVA, Toscafund and Infinity Investment Partners in order to add a further £30 million in equity to its balance sheet.

It follows the £75 million that Atom secured in February 2022 and means that the Durham-headquartered digital lender has now raised over £100 million in capital in the past 12 months. The proceeds will be channeled toward further lending and accelerating the ongoing growth and development of the banking platform.

The fundraise should enable Atom to continue to support its lending clients – homeowners, first-time buyers, and SMEs – in this challenging economic environment. It is also another key step in Atom’s plans for growth and a future public markets listing.

Despite a fast-changing backdrop, Atom’s management claims they have continued to provide a solid performance this year.

Growth in lending and retail deposits has driven a considerable increase in net interest income, and Atom has recorded positive operating profit while the bank continues its control of costs. The bank continues to offer an attractive deal for savers, winning clients with its combination of ease, speed, and better overall value than the high street banks.

As a result of its focus on client outcomes, Atom claims that it remains one of the most trusted banks in the United Kingdom, with a Trustpilot score of 4.7/5. The bank’s 5-star rated iOS app sets the “standard” for direct, virtual banking.

Atom continues to support the future of work and provide an improved value proposition to its workers. As a result, the bank benefits from improved employee retention, strong applications for new roles, and relatively lower rates of worker absence, supported by its move to a 4-day working week.

Mark Mullen, Chief Executive Officer at Atom, said:

“I’m delighted that the bank’s continued success means that BBVA, Toscafund and Infinity Investment Partners have added to their stake in Atom, and taken new capital investment during 2022 to over £100m. Our prudent, secured lending model, backed by award winning retail savings allows us to make the very most of capital to support income growth and boost customer numbers. This will remain our focus.”

He added:

“This year has been one of continued progress and development at Atom. In recent weeks we surpassed £4.5bn in retail deposits having made waves with the pricing of our fixed and instant savers, opening up a void between banks such as Atom that pay a fair return on savings and those that are simply unresponsive to the market. Alongside continued growth in our mortgage and business lending books, the bank is proving that our clear focus on being fast, easy, and value for money is something that will keep benefiting both our customers and shareholders.”

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