A new digital-only lender has entered the market, recently securing a licence by the Bank of England which enables it to push ahead with plans to launch products and services to customers later this year.
Atom Bank is developing a range of personal and business banking products and services that will be delivered using mobile apps, with a desktop version to follow. It will also have a mortgage offering.
The ‘challenger’ bank says it represents the “first real alternative” to traditional high street banks and is free of the existing banks’ branch and legacy costs.
Mark Mullen, the bank’s chief executive, stated that Atom will offer a quality of digital experience “without parallel in this sector or in many others” to give consumers a bank in their pocket that is ready whenever and wherever they need it.
Having raised £25m to build the bank, Mr Mullen, along with chairman Anthony Thomson and chief financial officer Dave McCarthy, are currently raising the balance sheet capital for launch.
With the support of existing investors, including cornerstone investor Neil Woodford, the team is confident of bringing new institutional and strategic partners on board.
Designed and built at headquarters in Durham, Atom’s technology will use biometric security and in-app account to deliver a branch-free, paper-free and stress-free bank.
Edward Twiddy, Atom’s chief operating and innovation officer, said: “Our customer service team will provide support and technical expertise to customers all-day and everyday by phone, chat and email and through social media.
“Our customers will also have access to the UK and international ATM network and the ability to pay in cash and cheques when needed.”
Atom has 100 permanent and contract staff and is set to employ at least another 60 before the end of the year. It has established a network of 110 partners and suppliers from across the north east, UK and globally to bring the very best talent and technology together.
Around this time last year the Prudential Regulation Authority authorised five new banks and said it witnessed a substantial increase in the number of firms discussing the possibility of becoming a bank since the barriers to entry were for new financial institutions.
peter.walker@ft.com
