A MOBILE bank has raised £149m to continue its market growth.

Atom Bank bosses say the funding, from a round led by investors BBVA and Toscafund, will see the former invest a further £85.4m in the bank.

The move will increase its ownership to around 39 per cent.

Toscafund will invest £54.4m and is also increasing its stake in the bank.

To date, Atom, based at Aykley Heads, on the outskirts of Durham City, has taken £1.3bn of deposits and loaned more than £1.2bn to small businesses and homeowners.

The lender has no plans to open high street branches and is instead serving customers through a mobile app.

Earlier this year, it was revealed Atom founder, Anthony Thomson, had stepped down as chairman.

Mr Thomson, who was also integral in the establishment of Metro Bank, said it was the right time to leave as the operator “moves into a new phase of development”.

He has been replaced by Bridget Rosewell.

Mr Thomson left to embark on a travelling adventure linked to his co-authoring of a money marketing book, but has remained a shareholder in the bank.

Atom, which launched in 2014, previously agreed a £30m deal to ramp up assistance for fledgling companies, following backing from British Business Bank Investments Limited.

It also pulled off a significant coup when attracting popstar Will.i.am as a board advisor to support its use of technology in the banking sector.