Mobile lender Atom in £100m funding drive

Billy Bambrough
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Atom's headquarters is in Durham (Source: Atom Bank)

Mobile money lender Atom Bank is gearing up for a fresh £100m funding drive.

The app-based bank is preparing to approach backers to shore up its balance sheet against early-stage losses and regulatory capital requirements.

Atom began accepting deposits earlier this year and is planning to start mortgage lending in coming months.

Read more: How nine challenger banks reacted to the CMA's report on current accounts

If successful it’s understood the latest funding round would take Atom’s total capital raised to £235m. The news of the latest funding round was first reported by Sky News.

It’s thought the latest raising will see Atom return to existing backers.

Spanish bank BBVA is among Atom’s early investors, committing £45m for a stake of almost 30 per cent.

Atom was set up by two of the retail banking industry’s most prominent executives: Metro Bank co-founder Anthony Thomson and former First Direct chief executive Mark Mullen.

Read more: Atom acqui-hires northern games developer Grasp

The rise of online-only lenders comes as high street banking giants rush to shutter branches around the country to minimise costs.