Atom Bank experiences £36m loss

Atom Bank has reported an underlying operating loss of £36 million in the year ended March 2021, down from £46 million in the previous year.

The UK digital bank also recorded a statutory loss before tax of £62 million, down from £66 million in 2020.

But the challenger predicts it will breakeven sometime next year.

In April, Atom confirmed a £40 million funding round at 60p a share, halving the bank’s valuation.

The equity raise was just half the price at which investors acquired shares in 2019, when Atom made £50 million.

The bank said the slight improvement in losses this year could be attributed to bringing together a number of initiatives, including diversifying the bank’s savings range by introducing its Instant Access Saver.

“While we continue to be loss making, the dynamics of the business have been transformed and we have developed strong momentum towards reaching breakeven on a monthly run rate during 2022,” said Atom chief executive Mark Mullen.

The chief said that the British bank had successfully completed commissioning of its new banking technology stack.

Running in Google’s Cloud Platform (GCP), Atom has partnered with Thought Machine to deliver Vault, a cloudnative and smart contract based banking core, which has been used to launch its new Instant Access Saver.

Atom said that this had proved “very popular” with customers, with the bank fast approaching £1 billion of savings balances.

“We have also successfully decommissioned our old stack and migrated all savings accounts and balances to our new platform – happily without incident!” added Mullen. “We have also made some important improvements to our banking Apps, enhancing both their speed and usability and we now enjoy consistently positive reviews in both App Stores.”

The Atom boss said that in the coming month’s the bank will focus on process automation and efficiency.

    Share Story:

Recent Stories

New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.