Atom Bank is raising £100 million and getting into mortgages
By Oscar Williams-Grut for Business Insider
App-only challenger bank is raising £100 million ($129.6 million) from its shareholders to break into mortgages, according to Sky News.
The fintech startup, which opened to customers earlier this year, reportedly wants to raise money funds so it has enough regulatory capital to break into new products such as mortgages, as well as fund losses, Sky News claims.
Chairman and cofounder Anthony Thompson told Bloomberg last month that Atom would look to raise £100 million in the first quarter of next year but did not mention mortgages.
A spokesperson for Atom told Business Insider: “We are looking for capital to support our ambitious growth plans and are very pleased to enjoy the support of a blue-chip shareholders register.”
They did not comment on mortgage plans, however, the email signature of Atom’s Head of PR strongly hints that the startup is on the verge of launching a mortgage product:
Oscar Williams-Grut/Business Insider/Atom
A “Residential Mortgage” button on Atom’s website promises it will be: “Spreading the Atom magic, available through mortgage brokers very soon.”
Atom Bank is the brainchild of Metro Bank cofounder Anthony Thompson and Mark Mullen, the former CEO of phone-only bank First Direct. It was valued at £150 million before it had even launched when Spanish bank BBVA last year invested £45 million for a 30% stake.
Other investors include star fund manager Neil Woodford and Jim O’Neill, the former Goldman Sachs economist famous for coining the term BRICs to refer to Brazil, Russia, India, and China.
40,000 people have downloaded Atom’s app since it launch in April but only 2,000 have actually opened accounts, according to the Financial Times. The FT reports that the startup currently has £18 million of customer savings.
Atom is one of a number of app-only banks in Britain, although it is the first to officially launch. Others include Monzo, Starling, and Tandem.
First appeared at Business Insider
