Investors back Atom with £100m to further disrupt the UK mortgage market

01 November 2023


  • The funds will be used to accelerate lending and balance sheet growth as the digital bank continues to challenge the incumbents
  • Atom has developed a highly scalable business model, which has been backed by long-term investors to succeed
  • The bank is targeting industry leading cost efficiency and returns as it aims for significant growth
  • The raise comes after Atom announced its first year of operating profit, with industry leading customer service metrics

Atom bank, the UK’s first app based bank, has raised over £100m in new equity capital from long-term shareholders BBVA, Toscafund and Infinity Investment Partners. This is believed to be the largest private capital raise by a digital bank in the UK this year, and the funds will be used to accelerate lending following a period of record growth.

Atom recently announced its first full year of operating profit, demonstrating the potential of its cost efficient and scalable model. The FY23 results saw revenue growth of 62%, customer numbers doubling to 224,000, and savings deposits rising to £6.6bn. Atom has already eclipsed that figure for operating profit this financial year, with current quarterly run-rate generating +£100m of annualised net interest income and +£25m of operating profit. The bank also has industry leading levels of customer service, with TrustPilot, iOS and Android ratings of five stars and a NPS score in the high 80’s.

The capital will enable Atom to accelerate balance sheet growth, and create an even more compelling proposition for savers, homeowners, first time buyers, and SMEs, which is faster, easier and better value than what is offered by competitors and the high street banks. Atom has already loaned more than £4bn to UK homeowners, and over £1bn to small businesses since launch, with the funds enabling the digital bank to further ramp up lending activity.

The capital raise process started early this year, and forms part of Atom’s long-term strategy to deliver a liquidity event in the future.

Mark Mullen, Chief Executive Officer at Atom, said:

“I’m delighted with this vote of confidence in Atom from our investors, and to have their ongoing backing is a fantastic boost.”

“Atom continues to grow strongly and sustainably. We are a cautious bank with an excellent track record of lending responsibly and successfully. We have a compact business model and we keep tight control over our costs. We look after our customers by offering them consistently great value and treating them fairly.”

“This money will be put to work to drive growth and to fuel the development of our franchise. UK customers need better outcomes and better banks. Our vision remains as valid today as it was when we founded the company – change banking for good, for the better, for everyone.”