British challenger bank Atom on Tuesday sold a 29.5% stake in the business to Spanish banking group BBVA for £45 million ($68 million).
Advertisement
The investment in the startup lender, which is expected to launch in 2016, is part of BBVA’s strategy to expand in digital banking and is the latest example of Spanish interest in Britain’s banking sector after rival Sabadell’s takeover of TSB earlier this year. In one of the latest developments, Atom Bank, a United Kingdom mobile banking startup and app aimed at hip, youthful consumers that has yet to launch its commercial service, is today announcing that it has closed an £82 million ($128 million) round of funding.
BBVA also has strategic stakes in leading Silicon Valley start-ups such as lender Prosper, wealth management tool Personal Capital and Bitcoin wallet Coinbase through its US$100m US-based BBVA Ventures fund. “We have long admired their vision and leadership, and like us, BBVA clearly believe in the power of technology to transform customers’ lives for the better”, said Mark Mullen, Atom’s Chief Executive. “It is a huge vote of confidence in our team, business model and indeed the future of competition in United Kingdom banking that BBVA are coming on this journey with us”, he said.
“We have kept our app to ourselves so far to protect the innovation and IP that it is built on”, said Thomson on the fundraise.
“Now with BBVA as our strategic partner we really do feel that the sky is the limit for Atom”.
BBVA believes the digital market in the United Kingdom offers excellent growth opportunities and that digital banks that put the customer first are the future.
Advertisement
This brings Atom’s total funds raised to £135 million in the last 18 months, with investors including Woodford Investment Management, Toscafund Asset Management, Marathon Asset Management LLP and Polar Capital. And as a bank with no large retail presence in the United Kingdom, BBVA has no competitive conflict with its Atom investment.
