THE world’s first ‘telepathic’ bank has moved closer to starting operations after signing a rental agreement with a difference.

Atom Bank, which hopes to create up to 400 North-East jobs, says Durham County Council has taken 150,000 shares in it.

The deal is based on the firm’s rent from its temporary home at the council’s Northumbria House, in Aykley Heads, near Durham City.

Trailblazing online bank Atom, which will offer an alternative to traditional high street lenders, expects to open its UK headquarters this year.

It plans to build new offices on a five-acre site beside the nearby Rivergreen Centre, where it aims to employ more than 400 people by the end of the decade.

Northumbria House was previously used by the council to house its business support division, Business Durham, and sport and culture teams.

Council bosses say the shares deal was agreed by Business Durham following an approach by Atom last year.

Simon Goon, Business Durham’s managing director, said: “This deal will act as a catalyst for further investment in Durham City.”

Atom is headed by banking pioneer Anthony Thomson, the founder and former chairman of Metro Bank, and Mark Mullen, who was chief executive of First Direct.

It will operate no high street branches, but hopes to attract customers by offering innovations such as paperless cheque deposits, which are designed to allow people to email a picture of a cheque they want depositing.

Mr Thomson said: “Our mission is to change banking for good.

“The aim is to become the first ever telepathic bank.

“With predictive technology we think we will know what it is that you need.”

In December, Atom revealed more than 30 staff would join during the early part of 2015, after it secured £25m of funding.