Durham’s digital Atom Bank raises another £83m

Atom Bank founder Anthony Thomson

Durham-based Atom Bank, the UK’s first bank designed exclusively for mobile technology, said it agreed a further £83 million in equity capital from major shareholders.

The latest round brings the total capital raised by Atom Bank to £219 million.

Atom Bank said it secured further capital from current investors including Spanish bank BBVA, Woodford Investment Management, Toscafund Asset Management and others.

After securing its banking license in June 2015, Atom Bank launched operations in April 2016, offering two fixed saver accounts and secured business lending for small and medium-sized enterprises (SMEs).

Atom Bank recently launched its first mobile mortgage product, allowing borrowers to manage everything via an app, and plans to launch further products and enhancements to the app throughout 2017.

Atom Bank’s founder and chairman Anthony Thomson said: “We are very pleased with the response we have had from investors.

“Our customers benefit from the backing of highly reputable investors who are supportive of what we are doing.

“This is a great vote of confidence in our growth prospects and plans for the future.

“With the work we have done so far we are just beginning to see how transformational our new approach to banking can be.

“There is so much more to come from Atom in the coming months and years.”

Atom Bank said it expects to announce further funding in the near future.

BBVA said in a statement it would participate in the latest funding with £29.4 million, an investment that would allow it “to continue as Atom’s main strategic investor and maintain its stake of around 29.5%.”

BBVA said: “As a strategic shareholder and partner, BBVA will keep two seats on Atom’s board of directors and will continue to bring knowledge and support to Atom’s development.”

Javier Rodríguez Soler, global head of strategy and M&A at BBVA, said: “Atom has a lot of promise, with tremendous opportunities for growth.

“It allows BBVA to further its transformation and maintain its commitment to the British market.”

Atom chairman Anthony Thomson added: “We are very satisfied with the confidence that our main shareholders are placing in us by participating in this capital increase.

“We will keep growing, rolling out new products and developments of our app and offering a whole new way of banking on our mission to change banking permanently for the better.

“The activity in the UK market will continue to gather heat in 2017 and we are confident we have a firm foundation to keep making headway.”