NORTH-EAST lender Atom, the UK’s first all-digital bank, has been boosted by a £45m investment from Spain's second-largest bank.

BBVA has taken a 29.5 per cent stake in the Durham City-based bank which got the go ahead from regulators in June.

BBVA's investment will be used to provide capital for the build-up of Atom's business. 

Atom, set up by former Metro Bank chairman Anthony Thomas and First Direct chief executive Mark Mullen, will soon launch with an app and be initially mobile-only. It will not operate any high street branches.

Mr Mullen described what the deal means for the lender.

“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,” he said.

Atom’s, founder and chairman Mr Thomson, said: “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 beyond and with BBVA as our strategic partner we really do feel that the sky is the limit for Atom.

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

Atom confirmed that existing investors Woodford Investment Management LLP and Toscafund Asset Management LLP have held their positions as leading shareholders alongside BBVA, and that well-known institutional investors Marathon Asset Management LLP and Polar Capital are also maintaining their commitment.

Atom, based at Aykley Heads on the outskirts of Durham City, is carrying out live trials before it invites a select number of customers to trial its services ahead of a public launch in early 2016.