Durham digital banking firm Atom Bank has raised £50m in a fundraising round to support its growth.
The Aykley Heads-based business – the UK’s first bank built purely for mobile phones – has raised the sum with participation from BBVA, Toscafund, Woodford Patient Capital Trust and funds advised by Perscitus LLP.
Atom said the new capital will be used to fund further growth and to continue the bank’s investment in technology, with around 50 new jobs being created.
The fundraising round means that Atom has brought in around £450m of equity capital as it works to be the UK’s leading digital-only bank from the North East.
The bank’s total lending, for homeowners and small businesses, has grown by 76% in the past year to £2.4bn, supported by growth in deposits from £1.4bn to £1.8bn.
Atom Bank – which was last week named best online lender at the What Mortgage Awards for the second year running – said it is welcoming up to £20m of business and £10m of residential mortgage applications each week.
The firm, which has around 310 employees at its Rivergreen headquarters, also said it is making progress with re-platforming the bank into the cloud, while preparing to launch new products, and that it will recruit more people as it expands its product range.
Atom, which announced music and TV star will.i.am as a strategic board advisor in 2017, has been named in the Top 10 of KPMG’s Fintech 100 for each of the past four years and was recently included in the London Stock Exchange Group’s 1,000 Companies to Inspire Britain.
Bridget Rosewell, chairman at Atom said: “This latest raise recognises the enormous progress that we have made on our journey to disrupt UK banking, and is a clear signal of our investor’s support for our future plans.”
Mark Mullen, chief executive officer at Atom said: “What’s important to customers is good products, good service and good value so that’s where we’ve spent the majority of our time and energy.
“We’re growing our team here in the North East and will add 50 new roles this year to help us expand the range of products and services we offer, starting with Instant Access savings in the autumn.
“More than ever we are convinced of the importance of Atom’s role to drive positive change in UK banking.”
Atom Bank was founded by former Metro Bank boss Anthony Thomson in 2014.
The Womble Bond Dickinson team who advised on the transaction was led by corporate partner, Ben Butler and included associate, Catherine Willis and solicitor, Oliver Rickett.
The firm has a longstanding relationship with the challenger bank and has been involved in the creation of Atom from the start.
Ben Butler said: “Atom continues to reshape today’s financial services landscape and challenge the traditional notion of what a bank should be.
“This latest fundraising round is excellent news and will allow Atom to develop yet more innovative and progressive solutions for consumers and businesses. We’re delighted to have advised them on this transaction and look forward to continue working with the Atom team.”
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