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Atom plans to be UK's first all-digital bank | Atom plans to be UK's first all-digital bank |
(3 days later) | |
The UK's first "digital only" bank will be launched next year, with its founder claiming that it will offer the first real alternative to the traditional high street banks. | |
Atom Bank is expected to launch in the first half of 2015 with a full range of products, including current accounts and mortgages for both retail and business customers. | |
It will be headed by Anthony Thomson, founder and former chairman of Metro Bank, and Mark Mullen, who was CEO of First Direct. Mullen left First Direct, with no formal announcement, two weeks ago. | |
"We are going to offer everything you would expect to get from a traditional bank," said Thomson. "However, we'll aim to be number one for customer service and satisfaction." | "We are going to offer everything you would expect to get from a traditional bank," said Thomson. "However, we'll aim to be number one for customer service and satisfaction." |
Atom is being positioned to grab some of the millions of people who are believed to be looking to move banks. A series of issues ranging from mis-selling, bankers' bonuses and IT failures have dogged Britain's high street banks in recent years and have already led to an increase in account switching. | Atom is being positioned to grab some of the millions of people who are believed to be looking to move banks. A series of issues ranging from mis-selling, bankers' bonuses and IT failures have dogged Britain's high street banks in recent years and have already led to an increase in account switching. |
Last year, according to campaign group Move Your Money, 2.4 million people moved bank providers and the organisation expects this to double in the year ahead. | Last year, according to campaign group Move Your Money, 2.4 million people moved bank providers and the organisation expects this to double in the year ahead. |
However, it is unlikely that customers who switch to Atom will do so for the highest savings rates or lowest overdraft charges. It will offer "good quality products" but these will not necessarily be market leading, Thomson said. | |
He is hoping that some of the recent problems Britain's biggest banks have experienced with IT will work in Atom's favour, rather than against it. | |
Lloyds, RBS and NatWest customers have all been locked out of ATMs or unable to use their cards at check-outs in recent months, but Thomson puts these problems down to "legacy IT systems that don't work". | |
"The difference is, we will be able to offer exceptional front-end service plugged into a state-of-the-art back end platform," he said. | |
Atom will not have any branches for retail customers – although there will be some for business banking – and will not offer telephone banking. Instead, transactions will purely be online and via mobile phones. | Atom will not have any branches for retail customers – although there will be some for business banking – and will not offer telephone banking. Instead, transactions will purely be online and via mobile phones. |
The direction of the new bank is something of a turnaround for Thomson, who launched Metro because he felt bank branches were very important for customers. | The direction of the new bank is something of a turnaround for Thomson, who launched Metro because he felt bank branches were very important for customers. |
"A lot has changed since I came up with the idea for Metro in 2007," he said. "To put branches in place now would be like BT bringing back phone boxes. Now everything can be done online or through mobile." | "A lot has changed since I came up with the idea for Metro in 2007," he said. "To put branches in place now would be like BT bringing back phone boxes. Now everything can be done online or through mobile." |
A recent report from the British Bankers' Association showed that mobile phone banking transactions made by British customers have nearly doubled in a single year to 5.7m a day, while 28.4m debit and credit cards have been fitted with contactless technology. | A recent report from the British Bankers' Association showed that mobile phone banking transactions made by British customers have nearly doubled in a single year to 5.7m a day, while 28.4m debit and credit cards have been fitted with contactless technology. |
Kevin Mountford, head of banking at moneysupermarket.com said the potential emergence of a new entrant was "great news". "However, I think the standard required by banking customers is rising by the day, and any new players in the market will have to excel." | |
Atom's base will be in the north-east, close to Newcastle, and it will initially employ 120 people. |
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