Anthony Thomson of Atom Bank discusses the landscape for starting a new bank in the U.K. - and how it's changed since 2010. From the "How to Start a New Bank" seminar hosted by Fiserv.

1. 2010 2015
What’s changed?
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2. Atom bank
A few thoughts on
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Getting authorised in 2010 and
getting authorised in 2015.
What’s the difference?
Consumers and banking in 2010
and consumers and banking in
2015. What’s the difference?
Building a bank in 2010 and
building a bank in 2015. What’s
the difference?
Atom Bank
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3. Atom bank
A bit about me
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Marketer by background
Entrepreneur by nature
Founder &Chairman Metro
Bank, Atom Bank
Chairman
The Financial Services Forum
NSAFS
NED: agiliti
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4. Atom bank
agiliti
agiliti seminar
Agiliti
™
is a software-as-a-
service (SaaS) retail bank
technology solution, modular
in its approach, with a
comprehensive software and
infrastructure enabling speed-
to-market for new entrants
into the UK banking sector and
rapid delivery of new
capabilities for existing
financial services providers
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5. Atom bank
The challenges to launching
a bank in 2010
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Authorisation
Technology
Access to Payments
Capital
Customers
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6. Atom bank
The challenges to launching
a bank then and now
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Authorisation
Authorisation
Technology
Technology
Access to Payments Payments
Capital
Capital
Customers
Customers
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7. Atom bankagiliti seminar
Consumers and banking in
2010 and consumers and
banking in 2015. What’s the
difference?
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8. Atom bank
People didn’t like
banks…
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9. Atom bank
Look familiar?
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10. Atom bankagiliti seminar
‘’Our busiest branch in 2014 is
the 7:01 from Reading to
Paddington – over 167,000 of our
customers use our Mobile Banking
app between 7am and 8am on their
commute to work every day.“
Ross McEwan
CEO
Royal Bank of Scotland
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11. Atom bankagiliti seminar
Building a bank in 2010 and
building a bank in 2015.
What’s the difference?
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12. Atom bank
Branch numbers are reducing
In 1970 there were c 20,000 bank
and building society branches for
10 m customers. Today there are
half that number for five times as
many customers
David Lascalles FT 26 10 14 Comment
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13. Atom bank
Branch and telephone transactions are
declining
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14. Atom bank
Customers are demanding a better experience
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15. Atom bank
Time for a photo…
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16. Breathing new life
into banking
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17. Our mission and vision
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Our Mission
To change banking for good. Permanently.
For the better. For our customers.
Our Vision
To be the world’s first “telepathic” bank.
Understanding our customers and fully
anticipating and meeting their needs.
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18. 0.45%
1.30%
0.09%
0.11%
0.46%
2.40%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
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Atom’s cost and legacy advantage
strategy
Operating model aims to drive considerable advantages in pricing and investor return
Barclays, Lloyds, Santander and RBS1
2014 Annual Reports
Atom
RoE
8.1%
19.2x
Leverage
Leverage
Returnon
Assets
Returnon
Assets
1 Barclays Personal and Corporate Banking, Santander UK and RBS
Personal and Business Banking results have been used. Tax rates
assumed at 21% where not specifically stated
Much lower
operating costs
No legacy
‘exceptionals’
Branches;
complex
structures;
compliance;
legacy
systems etc
Opportunities for
competitive
pricing
Enhanced
return – ROE
~25%
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19. Atom bank
In summary
agiliti seminar
It got easier to launch a bank
but it’s not easy
The future is digital in general
and mobile in particular
Customers don’t like banks –
they don’t want a relationship,
they want value
Value is an amalgam of price,
service, convenience,
consistency
Low cost = greater efficiency
=better value for customer and
better ROE for bank
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20. Atom bank
Thank you
Anthony.thomson@atombank.co.uk
Anthony.thomson@fiserv.com
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