Atom Bank

Based in the UK, Atom provides digital banking and mortgage loans to individuals, and loans to SMEs, via a mobile app.

The company initially entered the digital banking space in 2015 through the launch of a savings account under the name of ‘Fixed Saver’. Under this account, customers can open fixed deposits with durations ranging from 6 months to 5 years. In September 2020, the company expanded its digital banking segment, by launching a savings account dubbed as ‘Instant Saver’. Customers are required to link a current account under their name and once connected, this account enables customers to make deposits and unlimited withdrawals, without imposing minimum balance requirements.

Atom also provides mortgage facilities to first-time buyers as well as remortgages, with durations ranging from 2-5 years. It also provides secured loans and recovery loan schemes (RLS) to SMEs.

Key customers and partnerships

As of March 2023, Atom Bank served 224,000 customers.

The company entered into a strategic partnership with Funding Circle, a UK-based P2P SME lending platform, to lend up to GBP 150 million (~USD 189.2 million) in funds to small businesses in the UK. This new partnership will support SMEs through Funding Circle’s Recovery Loan Scheme (RLS) product and existing loan products.

Funding and financials

In November 2023, Atom raised GBP 100 million (~USD 120 million) in equity funding that saw participation from existing shareholders including BBVA, Toscafund, and Infinity Investment Partners. The round valued the company at 674 million (~USD 820 million), a 17% decline from its previous valuation. It planned to use the fresh funds to strengthen its balance sheet and accelerate lending by introducing improved offerings. Moreover, the company plans to go public via an IPO in 2024 or 2025.

In FY2023 (ending March 2023), Atom recorded net interest income of GBP 76.0 million (~USD 85.9 million; up 62.2% YoY), and underlying operating profit of GBP 4.2 million (~USD 5.4 million) compared to a loss of GBP 2.0 million in the previous year. However, the company reported a net loss of GBP 5.7 million (~USD 7.3 million) in FY2023 (ended 31 March 2023), compared to a net loss of GBP 9.1 million (~USD 11.7 million) in the prior year.