UK Digital Only Bank Secures $39 Million Funding Round

by Tristan Hugo-Webb 0

Atom Bank, a digital only bank set to launch in the UK in2015 has announced that it has secured £25 ($39) million in funding and plansto recruit 30 new staff ahead of its full launch. Participating in the bank’slatest round of funding was CF Woodford Equity Income Fund, venture capitalistJon Moulton, former chair of Goldman Sachs Asset Management Jim O’Neill,businessman Peter Vardy and Polar Capital.

Commenting on the funding round, Atom chief executive MarkMullen said, “As we continue to move closer towards authorization, our strongfinancial position and the support from individual and institutionalshareholders positions us well for our planned launch in 2015.”

While the UK has long dominated by legacy players, in recentyears the marketplace has been disrupted not only by the launch of Metro Bank,the first new financial institution to enter the UK market in 150 years but anumber of alternative players like Supermarket chains and now Atom Bank. AlthoughUK consumer channel preferences are increasingly in favor of digital platformslike online and mobile banking, there is still demand for branches, somethingthat Atom Bank might struggle with unless it can form a partnership with eithera traditional player or an organization like the Post Office and utilize theirexisting branch network.

Overview by Tristan Hugo-Webb, Associate Director, International Advisory Service for Mercator Advisory Group

Read full story at Finextra