Mark Mullen, Chief Executive of Atom, a digital bank based in the UK, stated that running a four-day working week was far less difficult than handling the rise of remote working. This comment came on the back of Atom recording its first annual pretax profit. After introducing a shorter 34-hour week for all staff in 2021, without changing their pay, the bank noticed a decrease in employee turnover and sickness rates.
Mullen indicated that managing a four-day working week was substantially more straightforward than dealing with post-pandemic flexible working arrangements. He hinted that managers might feel hesitant about asking their staff to return to the office due to flexible working patterns, which could result in a resistant attitude from employees. However, the reduced working week provides clear expectations for both bank and its employees.
Mullen remarked, “When it came to the four-day working initiative, we were able to plan the shift patterns, the changes, and consulted on amendments to employee contracts. As a result, we had a resourcing model that met our business needs, something that didn’t occur with flexible working.”
Atom bank recently revealed an annual pretax profit for the first time, amounting to £7 million (€8.3 million) in 2023. The bank’s loan book had expanded by 40% to reach £4 billion, largely thanks to a 55% rise in residential mortgage balances, which now totalled £3.2 billion.
Established in 2016 as one of the UK’s pioneer app-based banks, Atom secured its banking licence ahead of its competition — Monzo and Starling. Despite this, Atom’s growth has been slower in comparison, and it does not currently offer checking accounts.
“In my view, creating an exceptional enterprise is more important than forming a sizeable average one. The world has no need for an additional run-of-the-mill bank,” Mullen stated. He emphasised that Atom was “quick… user-friendly and… [gave] customers a good deal” regarding interest rates.
A fundraising round that included shareholders like Spain’s BBVA bank, Toscafund, a private equity firm, and London’s Infinity Investment Partners, valued Atom at £362 million last year.
Atom’s innovative use of technologies for loan underwriting has enabled it to provide principle agreements for commercial loans within a single business day.
In 2022, the upstart bank had to postpone its plans for an initial public offering due to a challenging market environment. Mullen, previously the head of marketing at HSBC’s First Direct, held the view that profitability would bolster investor’s faith in a potential listing. Nevertheless, he had no desire to be “enslaved to a timeline”. – This information is protected by The Financial Times Limited 2024’s copyright laws.