UK-based Fintech Atom Bank to Raise £40 Mn, Plans for Initial Public Offering

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mobile fintech | iTMunch

Atom Bank, one of UK’s most innovative fintech banks is set to raise around 40 million pounds from its current shareholders. The retail bank revealed that it will use this capital to fuel its growth.

Atom’s Vision

The bank has expressed plans to float on the Stock Exchange within the next two years. Atom is slowly eyeing profitability for its mortgage and business lending within the next year. Due to the significant rise in revenues, the UK’s first app-based bank also plans to launch an IPO in a couple of years.

While commenting on the possibility of an IPO in the future, Mark Mullen, Chief Executive Officer, Atom said, “We turn to our shareholders for capital as and when we need it to drive growth. Despite it being a difficult environment for all companies that need to raise funding, this capital raise will allow us to continue to progress towards profitability and ever-improving levels of efficiency and engagement.”

He also added that the leadership has placed IPO as its primary objective and will drive the business in its direction when the market conditions are more favorable.

Atom said that it expects the small business lending to grow to over 700 million pounds by the end of March – nearly a threefold increase in business loans. This rise in business loans is largely being driven by increases in the Coronavirus Business Interruption Loan Scheme.

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More About Atom

Atom is UK’s first digital-only-challenger bank that has been granted a full UK regulatory license. At present, the bank has a workforce of 350 people. It is the UK’s first-app-based branch which does not have any branch offices. Atom Bank has developed applications for Android as well as iOS that include features such as customer log-in via face or voice recognition and biometric security.

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Riddhi Jain is a technology content writer. She is based in India and has been working as a content writer since 2018. Riddhi has been writing content in the tech domain since May 2020 and can’t get enough of it. Riddhi has pursued most of her education from her hometown, Indore. She has graduated as a Bachelor of Business Administration and discovered her love for writing blogs while pursuing an internship during college. Once she discovered her love for writing, she went on to improve this skill set (and hasn’t stopped since).
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