Atom, a new bank in the UK, is eyeing 5% share of the country’s personal current or checking account market in the next five years.
Atom is reportedly the new kid on the block and among several new banks that have come up in the country following numerous scandals that have affected the reputation of the bigger banks.
Atom bank will be completly digital with no branches for retail customers, though there will be few branches for business banking, reports Reuters. There will be no telebanking service either; instead, transactions will purely be online and via mobile phones.
Reuters quoted Atom CEO Mark Mullen as saying: "I genuinely believe the UK banking market is at a tipping point for a variety of reasons. Technology is a core driver, but it’s the willingness and appetite to consider alternatives in light of the banking crisis that plays into this environment.
"In an industry that is ripe for change you should not be afraid of achieving a 5 percent market penetration between now and 2020. If you’re good enough you should be able to do that, but it’s a big ask."
Mullen also said that they will try to decrease the time needed by a customer to switch accounts from the current seven days to 24 hours eventually.
Headquartered in Durham, northeast England, the bank is seeking help of the country’s financial regulator to get a banking licence. The bank is expected to commence operations by the end of the year.
Investors including British fund manager Neil Woodford have helped the bank raise $39m for the design and construction.