[h=1]Atom Bank approved as UK’s first digital-only lender[/h] Branch-free lender considering a tie-up with Apple Pay
June 24, 2015 by: Emma Dunkley
Atom Bank has been given the green light by the Bank of England to launch as a digital-only lender and is considering a tie-up with Apple Pay as customers flock to mobile banking.
The branch-free bank, founded by Anthony Thomson, who created Metro Bank, and Mark Mullen, former chief executive of First Direct, will offer services through mobile, internet and ultimately wearable devices when it launches this year.
Atom is the latest so-called challenger bank to receive a licence from the financial regulator as part of a push by the government to inject competition into retail banking.
While other online brands — such as Egg, Smile and Cahoot — have launched in the past, the regulator said Atom was the first bank focused on a mobile app to gain a licence.
Recent figures from the British Bankers’ Association revealed that mobile had overtaken branches and the internet as the most popular way to bank.
Mr Mullen said Atom allowed customers to “have a bank in their pocket that is ready whenever and wherever they need it”. Atom is considering adopting Apple Pay, the US tech group’s contactless payment system, which launches in the UK next month.
A number of large UK lenders — including Nationwide, HSBC, Royal Bank of Scotland and Santander — this month said they would link up with Apple Pay to allow customers to make purchases with their mobile device.
Commenting on the launch of Atom, Kevin Mountford, head of banking at comparison site Moneysupermarket, said: “As a first in the UK, it will be interesting to see what type of products they will launch with and how their app-based approach will differentiate them from their high street competitors.”
Atom’s app has biometric security, including face and voice recognition. The bank said it would provide a customer service team available every day by phone, email and social media. Customers will also be able to pay in cash and cheques through a partnership with an established high street bank.
Atom worked with a number of high-profile investors, including fund manager Neil Woodford, to raise £25m start-up capital. But Atom now needs to attract new institutional and strategic partners to help build £75m of capital to lend to individuals and small-business customers.
Atom will have lower costs than established high street lenders as it will not have branches to run and will have a clean balance sheet. It is targeting a cost-income ratio of about 30 per cent, considerably lower than many larger banks.
https://next.ft.com/content/d44266e...nks/rss/companies/feed//product#axzz3e3cpGvUu
June 24, 2015 by: Emma Dunkley
Atom Bank has been given the green light by the Bank of England to launch as a digital-only lender and is considering a tie-up with Apple Pay as customers flock to mobile banking.
The branch-free bank, founded by Anthony Thomson, who created Metro Bank, and Mark Mullen, former chief executive of First Direct, will offer services through mobile, internet and ultimately wearable devices when it launches this year.
Atom is the latest so-called challenger bank to receive a licence from the financial regulator as part of a push by the government to inject competition into retail banking.
While other online brands — such as Egg, Smile and Cahoot — have launched in the past, the regulator said Atom was the first bank focused on a mobile app to gain a licence.
Recent figures from the British Bankers’ Association revealed that mobile had overtaken branches and the internet as the most popular way to bank.
Mr Mullen said Atom allowed customers to “have a bank in their pocket that is ready whenever and wherever they need it”. Atom is considering adopting Apple Pay, the US tech group’s contactless payment system, which launches in the UK next month.
A number of large UK lenders — including Nationwide, HSBC, Royal Bank of Scotland and Santander — this month said they would link up with Apple Pay to allow customers to make purchases with their mobile device.
Commenting on the launch of Atom, Kevin Mountford, head of banking at comparison site Moneysupermarket, said: “As a first in the UK, it will be interesting to see what type of products they will launch with and how their app-based approach will differentiate them from their high street competitors.”
Atom’s app has biometric security, including face and voice recognition. The bank said it would provide a customer service team available every day by phone, email and social media. Customers will also be able to pay in cash and cheques through a partnership with an established high street bank.
Atom worked with a number of high-profile investors, including fund manager Neil Woodford, to raise £25m start-up capital. But Atom now needs to attract new institutional and strategic partners to help build £75m of capital to lend to individuals and small-business customers.
Atom will have lower costs than established high street lenders as it will not have branches to run and will have a clean balance sheet. It is targeting a cost-income ratio of about 30 per cent, considerably lower than many larger banks.
https://next.ft.com/content/d44266e...nks/rss/companies/feed//product#axzz3e3cpGvUu
