Is Atom Bank a Safe Choice for You?

As our world continues its march towards digitization, the banking industry is no exception. One name that stands out in the realm of digital banking is Atom Bank.

With its innovative approach and digital integration, it’s propelling the concept of banking nurtured for a different era into the contemporary, tech-savvy age.

But with its unique and modern spin on banking, questions arise around Atom Bank’s safety and reliability. This investigation delves into all things Atom Bank – from its operations, regulatory framework, security measures, to its financial standing and overall reputation.

Our aim? To ultimately answer the question – is Atom Bank safe?

Overview of Atom Bank

Atom Bank is the UK’s first bank built entirely for mobile. It works through a smartphone app, which is used to apply and manage services such as savings accounts, mortgages, and business loans.

The bank’s aim is to make banking services more convenient and accessible through digital technology, removing the need for physical branches and paperwork.

Atom Bank’s Unique Features

One of the primary features that sets Atom Bank apart is its digital-only platform. This means that all banking operations are handled through the Atom app. The app is designed with top-grade security features like biometric identification for secure access.

Furthermore, Atom Bank offers flexible savings accounts, fixed saver accounts, and a range of mortgages. The savings accounts have competitive interest rates, and most of them allow money to be withdrawn without fees. The fixed saver accounts also provide higher interest rates for a set term.

Is Atom Bank Safe?

Security is one of the main concerns for customers when it comes to digital banking. Atom Bank ensures customer security by utilizing secure technologies such as biometric identification, including face and voice recognition.

Atom Bank is authorized by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA). This means that Atom Bank has to meet the same regulations and standards of safety that traditional banks need to comply with.

Furthermore, the deposits made in the bank are protected by the Financial Services Compensation Scheme (FSCS). This UK’s deposit protection scheme can cover amounts up to £85,000 if the institution becomes unable to return the customer’s deposits.

Atom Bank’s Reputation

As a reflection of its commitment to customer security and satisfaction, Atom Bank has gained a positive reputation among its customers. It has a high rating on Trustpilot, with many users praising the ease of use and the banking services provided.

With its regulation by financial authorities, innovative security features, and deposit protection scheme, it’s clear that Atom Bank prioritizes the safety of the customer’s money and information.

Atom Bank logo with a stylized atom symbol depicting the innovation and modernization of digital banking

Regulatory Framework and Financial Protection

Regulation of Atom Bank

Atom Bank, stationed and conducting its operations within the confines of the United Kingdom, functions under the scrutiny and regulation of the country’s chief financial authorities.

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are two such regulatory bodies that maintain and uphold the intricate framework intended to ensure the continued resilience of the UK banking sector, a framework to which Atom Bank is subject.

Licensing and Regulations

Atom Bank is fully licensed and regulated by both the FCA and the PRA. It operates under the robust regulatory framework these bodies enforce, further ensuring the bank’s adherence to rigorous standards of conduct and prudential management.

The institution’s full registration details can be located on the Financial Services Register, providing additional reassurance to prospective customers.

Financial Services Compensation Scheme (FSCS)

To assure customers about the safety of their deposits, the UK operates the Financial Services Compensation Scheme (FSCS). The FSCS is a statutory Deposit Guarantee Scheme that can pay compensation to depositors if a bank is unable to meet its financial obligations.

Atom Bank’s eligible depositors are covered by this scheme, which can offer up to £85,000 of compensation per depositor if the bank were to fail.

The Financial Conduct Authority primarily oversees the conduct of nearly 59,000 financial services firms and financial markets in the UK. It is the conduct regulator for 49,000 financial services firms and the prudential supervisor for 49,000 firms, setting specific standards for them. Atom Bank, along with other financial institutions, is required to adhere to the conduct standards set by the FCA.

On the other hand, the Prudential Regulation Authority plays a key role in the regulatory framework as the prudential regulator for around 1,500 banks, building societies, credit unions, insurers, and major investment firms. Regulations imposed by the PRA ensure that these institutions maintain sufficient capital and have adequate risk controls in place to ensure their stability and integrity.

The safety profile of Atom Bank is shaped by robust operational practices and formal licensing, enhanced by the protective shield of the Financial Services Compensation Scheme (FSCS). However, it’s crucial for individuals to carefully consider their financial objectives, requirements, and potential risks when selecting a banking partner.

Illustration of a bank vault and government regulators overseeing it to represent the regulatory environment of Atom Bank.

Security Measures of Atom Bank

The Robust Security Framework of Atom Bank

Leading the charge in digital banking security, Atom Bank utilizes a set of stringent, secure measures. The Bank employs advanced technologies to safeguard its customers’ personal details and funds. Their central belief revolves around providing the utmost security for your hard-earned money and sensitive personal data.

Biometric Security

One of their key security measures is biometric security, which uses unique biological characteristics to verify individuals’ identities. Atom Bank customers use biometrics when they log in to their account, making it almost impossible for someone else to access their information. The bank’s use of face and voice recognition software heightens security, as these traits are harder to replicate than traditional passwords.


Additionally, Atom Bank utilizes encryption – a fundamental aspect of digital banking security. They encrypt all sensitive data to guarantee your banking information is unreadable to uninvited parties. Encryption works by scrambling data into a code that can only be unlocked with a unique key. This means any intercepted data remains indecipherable and useless to potential cyber criminals.

Data Privacy

Atom Bank also places a high premium on data privacy. Their rigorous application of data protection protocols aligns with the European General Data Protection Regulation (GDPR), ensuring good practices for data handling and storage. Atom Bank only uses customer data to enhance banking services and does not sell any client information.

Two-Factor Authentication

Two-factor authentication, another of Atom Bank’s security measures, adds an extra layer of protection to the log-in process. This method requires customers to provide two different authentication elements to access the account. An example could be a password and a biometric factor. Even if someone manages to get hold of one factor, they will not be able to access the client’s account without the other.

Customer Education

Lastly, Atom Bank values customer education as a crucial component in maintaining security. Therefore, they advise customers to keep their devices’ operating systems updated, use strong and unique passwords, and be cautious of suspicious emails or messages asking for their banking details.

Final Thoughts

Summing it up, Atom Bank has indeed taken advanced security steps such as employing biometric technology, using encryption methods, implementing two-factor authentication, and others, acting as steadfast guards to secure the customers’ personal information and funds.

Their solid commitment to safety and data privacy has rightfully earned Atom Bank the reputation of being a secure digital banking option in today’s data-driven society. The security measures adopted by the bank clearly evidence their unwavering commitment towards safeguarding their customers’ banking experiences.

Illustration of Atom Bank security measures with the text 'Security Measures of Atom Bank' overlaid on top.

Bank’s Financial Health

Financial Stability of Atom Bank

Atom Bank, headquartered in the UK, is an exclusively digital banking platform which has been reliably servicing its customers since its inception in 2016. In order to gauge its financial stability, it becomes essential to closely examine the bank’s financial data, which includes their annual reports, quarterly earnings, and any available information on their capitalization and liquidity.


In terms of profitability, Atom Bank reported a pre-tax loss of £46 million in the 2020 fiscal year. Although the bank reported a loss, it was a reduction compared to the previous fiscal year’s loss of £53 million. The loss reduction indicates the bank’s efforts to reduce operational costs and improve efficiency, paving the way to profitability.


Capitalization, a measure of a bank’s financial strength, refers to the funds a bank has in reserve to cover losses. The Prudential Regulation Authority (PRA) sets the capital requirements for banks in the UK, and as of 2020, Atom Bank reported a capital adequacy ratio of 33%. This indicates that the bank has adequate funds to cover possible losses and handle potential risks, exceeding the standard 8% set by the PRA.


Liquidity is another important factor in assessing a bank’s financial stability, which refers to the availability of assets that can be easily converted into cash. Atom Bank maintains high liquidity with a liquidity coverage ratio of approximately 209%. This is well above the minimum requirement set by Bank of England, which is 100%, signifying the bank’s ability to meet its short-term obligations without any difficulty.

Customer Protection

For further protection, customer deposits at Atom Bank are protected up to £85,000 by the Financial Services Compensation Scheme (FSCS). This provides assurance for customers, knowing that their money up to this limit is safeguarded in the unlikely event that the bank fails.

Risk Management Strategy

Atom Bank’s risk management strategy is comprehensive, coupled with tight internal controls to monitor and manage operational, credit, and market risks. This strategy enables the bank to anticipate potential risks and implement necessary safeguards to mitigate them.


Atom Bank, despite some reported losses, is considered to be financially sound due to its robust capitalization, strong liquidity and thorough risk management strategy. Additionally, the bank provides customer protection through the Financial Services Compensation Scheme (FSCS).

It is recommended that potential clients conduct a thorough review of all available data and weigh their personal financial necessities before opting for a banking service provider.

Image representing the financial standing of Atom Bank, showing a secure vault symbolizing stability and financial strength.

Customer Reviews and Reputation

The Reputation of Atom Bank

Atom Bank, first in line as a mobile-only bank in the United Kingdom, has garnered much recognition and respect in the field of digital banking.

The overall perception of the bank is strongly positive. In terms of trustworthiness, Atom Bank scores a high 4.8 out of 5 on Trustpilot, with most reviews falling in the ‘excellent’ category.

The bank’s innovative technology, standout customer service, and competitive savings and mortgage rates are among the main points of praise from users.

Customer Reviews and Satisfaction

Atom Bank’s mostly positive customer reviews suggest a high level of satisfaction among its users, especially with the security measures in place to protect their money and personal information.

Customers often mention the bank’s safe and secure online platform while displaying a clear trust in its digital procedures.

They appreciate the ability to manage their finances at any time and from anywhere through the user-friendly mobile app.

Many reviews highlight the ease of setting up an account and navigating through the app, stating that the process is straightforward and efficient.

Customer Service

The bank’s high-quality customer service is another aspect often praised in the reviews.

Customers highlight the knowledgeable and helpful customer service representatives who offer prompt resolutions to their issues.

They express satisfaction with the professionalism and patience exhibited by bank representatives in handling various banking problems, which adds to their feeling of security when using Atom Bank’s services.

Recurring Issues

Despite the mostly positive reviews, Atom Bank does have its fair share of criticism. Some customers report issues with the bank’s face-and-voice recognition feature, which they find to be occasionally unreliable.

Problems with app performance and glitches have also been reported, which may pose inconvenience and cause dissatisfaction among users.

However, it’s worth noting that such criticisms are relatively rare compared to the plethora of positive reviews.

Furthermore, Atom Bank seems to be actively addressing these issues as it continues to update and improve its platform and procedures to enhance user experience and security.

Regulation and Protection

Consumers questioning ‘Is Atom Bank safe?’ can rest easy knowing that the bank is authorized by the Prudential Regulation Authority (PRA) and regulated by both the PRA and the Financial Conduct Authority (FCA).

Also, Atom Bank is part of the Financial Services Compensation Scheme (FSCS), which means that customers’ money up to £85,000 per individual, or £170,000 for joint accounts, is protected should anything happen to the bank.

In conclusion

Based on its positive reputation, high customer satisfaction, and adherence to regulations, Atom Bank presents itself as a safe and reliable choice for those considering digital banking.

Image of Atom Bank's reputation showcasing satisfied customers using a mobile app

Deciding where to place your trust when it comes to money is not an easy task.

In an age inundated with choices, we need thorough information to make informed decisions. This investigation has attempted to offer you that information regarding Atom Bank.

By scrutinizing the bank’s regulatory adherence, security measures, financial standing and overall reputation, we’ve sought to paint a comprehensive picture of Atom Bank’s safety and reliability.

Ultimately, it’s not just about using latest technologies, but also the firm’s commitment to transparency, financial stability and customer satisfaction that can ensure a safe banking experience for the users.

What do you think?

Written by Maeve Rodriguez

Maeve is a Business Content Writer and Front-End Developer. She's a versatile professional with a talent for captivating writing and eye-catching design.

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