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Atom Bank’s Profit Milestone: ‘Lowest Cost Wins’ Approach for Success

Atom bank has suggested that all banks should follow its formula of ‘lowest cost wins’ as the app-based bank announces its first-ever annual operating profit of £4million.

Over the past year, Atom has shown considerable progress, with a revenue growth of 62 per cent, which has outpaced the rise in operating costs, validating the strength of its customer-centric and cost-efficient business model. Its customer numbers have also almost doubled to 224,000.

Savings deposits reached a lofty £6.6billion, more than doubling the previous year’s figures, making Atom Bank an attractive alternative for savers compared to traditional incumbent banks.

The bank has also achieved five-star ratings on both the IOS and Android App Stores, and on Trustpilot, whilst consistently delivering Net Promoter Scores (NPS) in the high 80s.

Mark Mullen, CEO at Atom, highlighted the importance of providing exceptional customer service and value for money.

“We’ve grown strongly, kept our costs tight and delivered our first annual operating profit. Over the course of the year Atom has shown that banks can provide exceptional customer service and offer customers better value for money. We never allow ourselves to forget that ultimately, the customer pays for everything.

“We believe that the lowest cost wins. Lowest cost and highest quality wins every time. If that isn’t the new banking paradigm, then it ought to be.”


‘Doing fewer things well’

Speaking at the recent Fintech North Newcastle 2023 Conference, Atom’s chief technologist Andy Sturrock, also attributed the success of Atom on focusing on a core market.

“Like any startup there was lots of enthusiasm when we first started to do it all,  everything from credit cards and ISAs, savings accounts, mortgages, loans etc, but it dawned on everyone after a while that that’s a lot of work, not just building out the technology for it but also on top of that, you need a different set of regulatory approvals for everything,” said Sturrock. “But our focus on a core market and a focus on doing fewer things but really well was a very good lesson.”


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