Member Article

Atom Bank seals £45m BBVA investment

Durham-base challenger bank Atom, the UK’s first digital bank, has announced a partnership with BBVA, the multinational Spanish banking group.

BBVA has agreed to invest £45m for a 29.5% stake in Atom and bring their global expertise in digital and mobile banking to the launch and growth of Atom.

In addition to their pioneering use of technology across a global banking group that spans the Americas, Europe and Asia, BBVA runs one of the world’s leading innovation programmes in the banking and fintech industry from their innovation centre in Madrid.

In 2014, BBVA purchased Oregon based Simple, a tech company that is changing the way people bank and think about money in the US.

In Addition, the $100 million BBVA Ventures fund has invested in leading fintech businesses, proving that values-driven banking and cutting-edge fintech are natural allies in the delivery of better value and control for both personal and business customers.

Mark Mullen, Atom’s CEO, said: “We have long admired BBVA’s vision and leadership. Like us, BBVA firmly believe in the power of technology to transform customer’s lives for the better.

“We share their commitment to place the interests of customers at the heart of everything that the bank does, and the shared values and relationship between us that has built up over months of interaction have been critical to knowing that they are THE strategic partner for Atom.

“It is a huge vote of confidence in our team, business model and indeed the future of competition in UK banking that BBVA are coming on this journey with us.”

Anthony Thomson, Atom Founder and Chairman, added: “Atom has now raised over £135m in the 18 months since the founding team came together. This is a great response from investors to the compelling business case that the team has put together, and is a powerful signal to the regulators and most importantly for UK consumers.

“We have kept our app to ourselves so far to protect the innovation and IP that it is built on. Having seen it in operation I believe it will transform banking in the UK and beyondand with BBVA as our strategic partner we really do feel that the sky is the limit for Atom.”

Francisco González, BBVA’s Chairman and Chief Executive, said: “BBVA believes the UK offers excellent growth opportunities and that digital banks that put the customer first are the future. BBVA’s investment in Atom backs those beliefs in one move.”

Existing core investors Woodford and Toscafund have maintained their positions as leading shareholders, and well-known institutional investors Marathon and Polar Capital are also maintaining their commitment to Atom as part of this final raise before launch.

Atom is already in a live trial and will move shortly to an invitation Beta before a public launch in early 2016. Atom’s capital raise has enjoyed the advice of Canaccord Genuity and Atom has been supported throughout by Bond Dickinson LLP.

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