NORTH-EAST online bank Atom has been granted its licence by the Bank of England, enabling it to push ahead with plans to launch products and services to customers later this year.   

Atom Bank the UK’s first fully digital lender will operate predominantly via mobile apps. It plans to offer current accounts, mortgages and business banking online, with no high street branches.

It has 100 permanent and contract staff and is set to employ at least another 60 before the end of the year. Its five year plan will see it create about 340 jobs, most of them based in the North-East. 

Mark Mullen, chief executive of the bank that is based in Durham City said: “This is a wonderful vote of confidence in Atom.

"Atom will offer a quality of digital experience without parallel in this sector or in many others. Our team reflects this. Between us we’ve built and run some of the most highly respected banks in the UK, brought ground-breaking innovation to manufacturing and service businesses, and created great software with a worldwide reach. Now all of this is being poured into building Atom so that customers will have a bank in their pocket that is ready whenever and wherever they need it.”

Speaking about the impact of the licence and the opportunity for new investors, Atom Bank’s Founder and Chairman Anthony Thomson said: “It’s a testament to the talent and the dedication of our extraordinary team here in Durham and to the support and vision of our investors.  It’s also a positive endorsement of our business plan and model from the Prudential Regulation Authority and the Financial Conduct Authority.  We now have the mandate that only comes with a banking licence – to change banking permanently for the better.”

Atom was created with the support of a group of private individuals, principally from the North-East. This enabled the founding team to develop the business model and to start the process of obtaining authorisation.

Having raised £25m to build the bank, Mr Thomson, Mr Mullen and chief finance officer Dave McCarthy are raising the balance sheet capital for Atom’s launch. With the support of existing investors, including cornerstone investor Neil Woodford, the team are confident of bringing new institutional and strategic partners on board.

Designed and built at the Atom HQ at Aykley Heads in Durham using the North-East’s expertise in software development, Atom’s app aims to set new standards for the banking sector and will bring pioneering technology to Europe for the first time.

The business said Atom will be leading the way in delivering the ultimate easy and convenient banking experience. 

Biometric security and in-app account opening are just some of the features being developed to deliver a branch-free, paper-free and stress-free bank. Pre-registration for customers is already available through Atom’s website – www.atombank.co.uk

Edward Twiddy, Atom’s Chief Operating and Innovation Officer said: “We’ve set about designing a banking app that’s in tune with how people think about their money. Our customer service team will provide support and technical expertise to customers all-day and everyday by phone, chat and email and through social media. Our customers will also have access to the UK and international ATM network and the ability to pay in cash and cheques when needed.”

Atom has established a network of 110 partners and suppliers from across the North-East, UK and globally to bring the very best talent and technology together.