Atom Bank raises £83m from shareholders as it eyes expansion

Atom, the UK’s first app-based bank, has raised £83m from major shareholders as it prepares to roll out a range of new products and boost growth.

The latest round, which takes the bank’s total capital raise to £219m to date, was backed by institutional investors including Spanish bank BBVA, fund manager Neil Woodford and Toscafund.

The investment means BBVA remains Atom’s main strategic investor, with a 29.5 per cent stake.

Anthony Thomson, Atom Bank’s founder and chairman, said: “Our customers benefit from the backing of highly reputable investors who are supportive of what we are doing.”

The bank is planning to launch other products, including potentially a current account later this year.

Atom opened its digital doors to customers last year shortly after receiving its full banking licence from the regulators.

Unlike other new so-called digital banks, Atom is digital-only and based on a mobile phone app, making it a very low-cost business.

The bank offers a range of savings products and has entered the mortgage market by partnering with a number of brokers, who represent about 70 per cent of the sector.

It recently emerged that Atom has signed a deal with record producer and singer Will.i.am to act as an adviser and to potentially take a stake in the business.