A THREE year collaborative research project between Atom, the digital bank and Durham University, to develop a new model for retail banking, was announced today by Harriet Baldwin, Economic Secretary to the Treasury.

The project begins this autumn and is part-funded by Innovate UK, under the Knowledge Transfer Partnership (KTP) programme.

It will provide a three year project for a talented maths graduate to work at the bank, supervised by experienced academics, whose research will be embedded into the company.

The University’s Department of Mathematical Sciences and Atom’s analytics team will use leading edge statistical research to examine the relationships between key banking activities. The aim is to create a statistical model which, when complete, will give the bank an even greater competitive edge in the retail banking market and cost efficiencies in its operations.

Speaking during her visit to Atom’s offices in Durham City, Ms Baldwin, said:

“Atom Bank is the first of its kind in the UK. It’s a digital bank – being built from the ground up and I’m delight that it’s all happening in the North-East. The management team are investing in the skills and people of the region to create a unique digital banking offer for consumers.

“The UK financial services industry and the UK’s science base are two of our most important economic strengths so I am pleased to be able to announce that the bank is teaming up with Durham University, one the world’s top 100 universities, to ensure that it is as competitive as possible in its offer to consumers.”

Atom’s Head of Analytics Craig Morrow said:

"As a new entrant to the banking market Atom has a unique chance to make high-quality data and analytics solutions the lifeblood of the business. We were introduced to the Maths Department very early in our conversations with the University, and we have enjoyed a really fruitful exchange of ideas leading up to this KTP award. I’m very much looking forward to appointing the associate who will be at the centre of this collaboration and getting on with the project so that the company – and ultimately our customers and shareholders – enjoys the results of this support from Innovate UK as soon as possible.”

Professor Ray Hudson, Deputy Vice-Chancellor of Durham University welcomed the award and signalled the wider role that the University is already playing with Atom as part of its engagement with high growth businesses across the UK and globally. He said:

“New banks are rare, and new banks starting in Durham are unheard of, so the relationship with Atom presents a unique opportunity. The University has a great depth of research which it uses to create impact in businesses and society and our partnerships stretch across all faculties and with businesses all over the world. We were delighted when Atom approached us for support and ideas for their business, involving maths, law, economics and the skills of our world class business school. Atom has already hosted several Durham MBA students and undergraduates as summer interns and we are excited that the relationship has moved a new level with this cutting edge Knowledge Transfer Partnership. I have no doubt that this will be hugely rewarding for both parties and for the wider economy and look forward to establishing even deeper ties with Atom in the years ahead."

Dr Ian Brotherston, KTP programme manager at the Government’s innovation experts Innovate UK said: "The knowledge transfer partnership connects businesses and universities to help them get complex innovative projects off the ground and embed new capability. It also helps both parties think about and plan for the future of their business and share knowledge and experience along the way. Our financial sector is one of the largest parts of our economy so it's right that the UK is also at the forefront of innovation in this sector and I hope to see positive results from Atom and Durham university's partnership soon."

KTPs are run by the Government’s innovation experts at Innovate UK. The partnerships link businesses with UK universities and other research organisations and a recent graduate is recruited to help the business deliver a challenging innovation project. KTPs also help build sustainable capacity and capability in the business and lead to an increase in growth and productivity.