The fundraising efforts come when the bank is leveraging on the mortgage and business lending to spur profitability. The company has already seen its mortgage portfolio register profitability. Atom states that during the second half of the 2020/21 financial year, it added £362m mortgages. The statement adds that the bank has loaned £2.8 billion to UK mortgage customers since April 2016. Atom Chief Executive Officer Mark Mullen confirms the targeted funds will drive growth. He acknowledges that like other businesses, Atom has been operating in a challenging environment. According to the company, it will grow its lending to SMEs on its balance sheet by over £700 million at the end of March 2021. The Coronavirus Business Interruption Loan Scheme is the main contributor to the growth.
Another challenger bank nearing launch after fundraising
The momentum by the UK challenger banks continues with new players planning to launch in the market. In this line, Monument, a new challenger bank, has raised £28m from individual investors ahead of its launch later this year. Monument is seeking to woo wealthy clients like property investors and entrepreneurs. One of its key product offerings is to provide clients with a chance to seek property investment loans of up to £2m. Currently, Monument is still in the process of getting the relevant approvals from authorities. The license has been under processing since October 2020.
