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.