Despite only being created in 2014, Atom Bank can be considered the grand old man of UK challenger banks. Since the fintech startup first disrupted traditional banks’ business models with its app-based services, many other entrepreneurs have followed in its wake. However, Atom Bank attempts to leave the competition far behind with its latest round.
In its fifth funding round to date, Atom Bank has raised an impressive £149m and brought its total money raised so far to £369m. BBVA, the Spanish banking group, spearheaded this latest influx of capital by injecting £85.4m into Atom Bank, which meant it now owns roughly 39% of the startup. Usually UK law would force BBVA to make a mandatory takeover offer. However, the investor has a waiver from the other shareholders and Britain’s Takeover Panel and therefore won’t need to do make a bid for the whole company. Several of Atom’s other shareholders also chipped in for this round.
Having already taken £1.3bn of deposits and loaned over £1.2bn to SME businesses and homeowners in the UK to date, it’s no secret Atom Bank has already achieved significant results despite its young age. Now the startup plans to use the new money to double down on its achievements by perfecting its technology and keep investing in growth.
Given London is famous for its fintech scene, it’s hardly surprising that the new wave of challenger banks is sweeping the nation. With Atom Bank’s latest round and as the majority of the traditional finance industry is increasingly looking to cooperate with startups it certainly seems as if the future of banking has come to stay.