Atom Bank has received £30m Tier 2 capital facility from British Bank Investments to continue its growth.
Founded in 2014, the company is a mobile banking app designed entirely for digital use, offering personal and business products for those in the UK.
Atom allows users to set up face and voice recognition logins and access 24/7 support services.
This investment will help Atom’s aim of lending to UK corporates and smaller businesses.
Atom founder and chairman Anthony Thomson said, “Access to Tier 2 capital at such an early stage of the growth cycle is rare and we are extremely pleased to be gaining this support from British Business Bank Investments.
“Together with the British Business Bank, we are sending a clear sign – we are here to support UK SMEs.
“This facility provides us with tremendous flexibility. Like all banks, we are actively managing our capital structure and having access to Tier 2 capital at this stage helps support our growth and is a great result for Atom, its shareholders and customers.”
This capital comes under BBB’s Investment Programme which has currently committed over £580m to UK SME finance providers.
British Business Bank Investments CEO Catherine Lewis La Torre, said, “Our investment in Atom bank demonstrates our commitment to increasing the diversity of small business finance by supporting recently licensed and ambitious challenger banks.
“We have seen challenger banks becoming an increasingly important source of UK SME funding and we believe a committed regulatory capital facility will not only support Atom’s growth trajectory but will also drive the bank’s ability to lend to UK SMEs.”
Earlier this year Atom completed an £83m funding round, which saw commitments coming from existing investors including BBVA and Woodford Investment Management.
Total funding into the company is now around £249m.
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