As the bank aims to reach profitability, the £40 million raise includes “an offer to participate for qualifying shareholders in new ‘A’ class shares in Atom priced at 60 pence,” the company confirmed in a release.
As mentioned in the announcement:
“Atom’s revenues are growing strongly and the bank is on course to achieve over 100bps of Net Interest Margin (NIM) by the end March 2021. Atom is forecast to have grown lending to SMEs on its balance sheet to over £700m by the end of March 2021, a tripling of business loans in the last 12 months. This growth has been achieved both within the Coronavirus Business Interruption Loan Scheme and also independent of government schemes.”
The release further noted that Atom has experienced “strong” and “profitable” growth in its mortgage portfolio, taking more than £400 million of mortgage applications during the second half of financial year (FY) 2020/21. Since it began offering services, Atom has now reportedly loaned £2.8 billion to UK-based mortgage clients.
The Durham-headquartered lender also “confirmed its place in the secondary markets for UK mortgages, issuing a £770m prime mortgage securitisation last year – its third in the series.”
The release added that Atom’s savings products are now “hosted and run by Atom on UK fintech Thought Machine’s cloud-native ‘Vault’ platform – part of a transformation to real-time cloud-native technology across all of Atom’s banking stack that has also been completed in the last year.” Atom introduced an Instant Saver in September 2020 to “very strong reviews, and has so far added £0.6bn of Instant Saver balances to its existing £1.7bn of fixed-rate savings,” the company claims.
The announcement added:
“This step change in income and technology has been achieved whilst avoiding significant growth in operating costs and delivering great customer experience. Atom’s automated mortgage journey is rated 9.2/10 via Reevoo and over the last year the bank’s app has scored 4.7 on the iOS store and 4.5 on the Google Play store. Atom has a Trustpilot rating of 4.6/5 and its latest Net Promoter Score was +76.”
Atom CEO Mark Mullen noted that on the back of their “best year ever” and with “really strong momentum baked into the business,” this recent raise will accelerate their progress this year, and prepare them for the next phase in their development “prior to IPO, which we anticipate taking place in the next two years or so.”