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UK Challenger Bank Overview: Atom bank

Dec 6, 2019 | Cognition, Fintech

The rise of challenger banks cannot be ignored in the United Kingdom. Other regions around the world now begin to see  a similar trend, as the traditional financial hegemony is being challenged on all fronts.

One of the UK’s more prominent challenger banks goes by the name of Atom bank. The company provides a few interesting services, and expects to note more growth in the years to come.

The History of Atom bank

Originally founded in 2014, Atom bank has now been around for over half a decade. The company has received its banking license in June of 2015. Despite achieving that milestone fairly quickly, the company didn’t offer public services until April of 2016.  Ever since that time, Atom bank has focused its intention on personal finance and banking services across the board.

The company raised over $250m in funding to date. Its latest funding occurred in March of 2018, resulting in a round of funding worth just over $110m. Running any type of financial services provider requires a lot of money. That situation is no different for the challenger banks in the UK and other parts of the world.

With 250 employees under its wing today, it is evident that Atom bank has experienced significant growth. A lot of customers have signed up for their services. That only reinforces the image of how Britons aren’t too happy with traditional banks in many different ways.

As of January of 2019, Atom bank joined the Bacs Payment Schemes Limited. In doing so, the challenger bank is now part of the UK’s Direct Debit network, which allows it to compete even more with traditional financial institutions. 

The Provided Services

Any financial institution needs to provide competitive services to its customers. Atom bank is a mobile-only financial institution, allowing customers to access their financial data at any given time. This applies to all of the services the company provides today. It is worth noting Atom bank relies on facial and voice recognition to authenticate users, rather than dealing with PIN codes and passwords.

The main bread and butter of any bank is a savings account. Atom bank provides users with an account that can be opened in 10 minutes or less. As this is a non-physical bank, the costs saved by the company on branches are passed along to their customers. The savings product goes by the name of Fixed Saver, which offers customization in terms of term duration and interest rates. Very few banks offer positive interest rates these days, yet this challenger bank is one of them. 

Secondly, there is the mortgage aspect. This particular type of product has become synonymous with banking all over the world. Atom bank prides itself on providing competitive rates, independent advice, and real-time mortgage updates through the Atom bank mobile app. Different rates apply to mortgage for moving homes, remortgaging, or buying one’s first home. It is possible to take out a loan valued at over $400,000, albeit the rates will be somewhat different. 

The third main service focuses on business loans. Atom bank makes decisions in days, rather than weeks. The criteria are straightforward, and the transparent pricing ensures no hidden fees will be applied at the end. This service is available to LLPs, Limited companies, Sole traders, and Partnerships. Customers are free to use any broker for this purpose, as they can directly access the challenger bank’s underwriters. 

Images courtesy of their respective sources.

Fintoism is not providing financial or investment advice. All content published on this platform is for entertainment and educational purposes only.

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<a href="https://fintoism.com/author/oglock/" target="_self">JP Buntinx</a>

JP Buntinx

JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.

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