From cryptocurrencies, through novel insurance providers, to alternative legal services and banking — the fintech sector has it all. To help you stay up to date with this rapidly growing industry, today we’d like to introduce you to Atom Bank, a company that’s an innovator like no other and has deserved a spot in the global Fintech top 50.
Atom Bank | The Basics
To give you a better idea about Atom, let’s start with the basics. Atom is one of the pioneers in the digital banking sector. Though the headquarters of the company are in the Rivergreen Centre, Aykley Heads, Durham, DH1 5TS, Atom’s influence expands beyond the UK.
Anthony Thomson formed the company in 2014 to bring customers in the United Kingdom banking services of a new generation.
He envisioned a fully digital bank with no need for local branches altogether. This vision allowed Atom to focus on software innovation, permitting the company to keep the team small, yet cater to the interests of many.
Atom obtained a partial banking licence in 2015 and has been a fully-licensed bank since 2016. The PRA and FCA regulate it in the UK. The current regulation permits Atom to provide a full range of banking services and similar technologies to individuals and corporate clients.
Though it is fully digital, Atom offers everything you might expect from a bank. Customers can open savings accounts, apply for mortgages and loans, or get funding to start their own businesses. Atom is an instant saver when you need open banking services on the go.
Furthermore, Atom Bank PLC boasts a highly-professional collective at the helm. Founder Anthony Thomson has years of experience in the banking sector and previously headed Metro Bank. Aside from his position at Atom, Thomson chairs the Financial Services Forum and the National Skills Academy for Financial Services in the United Kingdom.
At the same time, CEO Mark Mullen has also been part of the banking industry for three decades. Before joining the Atom team, he was also in charge of another Internet bank — First Direct.
Who Backed Atom?
Like other tech enterprises, Atom Bank owes part of its success to several prominent investors. Among these are the BBVA, Woodford Investment Management, and Toscafund Asset Management.
Their initial funding helped make Anthony Thomson’s vision of a fully digital bank a reality. The investments allowed the CEO to find the perfect team to carry out his vision and develop software that’s reliable, safe, and easy to use.
Atom Bank is widely regarded as the first challenger bank to exist only in digital. Not familiar with that term? Worry not; we’ll clarify! The United Kingdom has four major banks — Barclays, HSBC, Lloyds, and NatWest. Together, they are known as the Big Four.
Challenger banks are newer institutions that compete for market cap with these four. Before Atom’s rise to success, other challengers still relied on physical branches to cater to customers. It’s impressive that Atom has managed to stake its claim on the banking map of the United Kingdom with no physical presence.
- Named among the top 10 financial technology companies in the KPMG Fintech 100 2016 list;
- One of the leading banks in the Fintech50 2017.
Is Fintech the Future?
If Atom’s success is any indication, digital banking has the potential to outshine traditional financial services soon. But that’s not all fintech covers.
The industry keeps innovating, bringing mobile solutions to problems we sometimes didn’t even know we had. These days fintech can do most anything, like providing you with short-term insurance or letting you compose a binding will directly from your phone. Simply adjust your preferences with the click of a button.
But perhaps the most exciting branch of fintech is the cryptocurrency market. Blockchains like Bitcoin promise to decentralise finance and bring power away from formal financial institutions into the hands of the customer. That’s a bold promise; perhaps crypto tokens will perform incredible feats in the future indeed.
The information we provided in this article cannot be considered investment advice. We recommend you do your own research and consult a professional before making an investment. Keep in mind that even with all the preparation in the world, no one can guarantee a profitable outcome. There is always a risk that you might lose your invested capital.