North East-based Atom bank ranks second in UK fintech 50

Atom, a Durham-based digital bank, has been named as second in a list of the UK’s top 50 fintech startups and scaleups, challenging the dominance of London located firms in the process.

The bank is the only non-London-based firm featured in the top 30 of Beahurst’s list of the rising stars of fintech, which ranks firms based on how much funding they’ve raised, as well as whether they’ve achieved other high-growth triggers.

Despite raising £482 million since its founding in 2013, Atom was kept from the number one position by OakNorth Bank, which received £637 million of funding.

On Atom’s performance, Beauhurst said: “Atom has opted to diverge away from providing current accounts, instead offering savings accounts, mortgages, and business loans to its customers.

“The movement away from current accounts, with no bank card issued, and the lack of any physical branch, has seen Atom differentiate itself from many of its challenger bank competitors.

“Atom offers savings accounts, mortgages and business loans through its app.

“Its fixed savings accounts range from three months to five years, with either monthly or annual interest.

“These accounts offer competitive interest rates, with the money saved from implementing physical branches intended to go towards providing these attractive rates.”

The North East also has another representative in the list, with DivideBuy, a firm that offers “a credit lending payment option for retail businesses”, appearing at number 31.

The inclusion of DivideBuy means that fintech companies from the region made up half of the four none-London entries in Beahurst’s top 50.

The credit specialist was also included at number three in Deloitte’s Fast 50 2019 high growth list.