Digital challenger Atom Bank has raised £50 million as it prepares to re-platform operations into the cloud.

The round was led by BBVA, Toscafund, Woodford Patient Capital Trust and funds advised by Perscitus, taking the bank’s total funding since it launched in April 2016 to £450 million.

The mobile-only player said the new capital will be used to fund further growth and to continue its investment in technology. It will also be adding 50 new roles in its office in the North East to expand its range of products, starting with Instant Access savings in the autumn.

It reported making good progress with re-platforming into the cloud and said it was gearing up to launch new products using Thought Machine’s smart contract technology.

The bank, which has recently talked down reports of financial challenges in the market for digital banking challengers, said that its total lending to homeowners and small businesses had grown by 76 per cent in the past year to £2.4 billion. Its deposits have grown from £1.4 billion to £1.8 billion, with £10 million of residential mortgage applications each week.

Bridget Rosewell, chairman at Atom, said: “This latest raise recognises the enormous progress that we have made on our journey to disrupt UK banking, and is a clear signal of our investor’s support for our future plans.”

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