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The boss of British digital bank Atom has said implementing a four-day week has been “considerably less challenging” than dealing with the rise of remote working, as the company posted its first annual pre-tax profit.
The bank, which in 2021 introduced a four-day, 34-hour work week for all employees without cutting salaries, had since seen lower staff attrition and illness, CEO Mark Mullen said.
“Planning and implementing our four-day week initiative has been considerably less challenging than navigating post-pandemic flexible working,” he said. Atom’s work from home policy offers complete flexibility with no mandatory days in the office.
Flexible working patterns could lead to managers being “afraid to ask their employees to return to the office” and a “rebellion” among the workforce about having to return, Mullen said. In contrast, the shorter work week brought with it clear expectations for the bank and its staff.
“With a four-day job, we plan shift patterns, we plan changes, we consult on changes to employee contracts. . . you have a resource model that grows your business. . . “That’s not what happened with flexible working.”
Mullen’s comments come as Atom reported its first annual pre-tax profit of £7m in 2023, after increasing its loan book by 40 per cent to £4bn. Lending growth was supported by a 55 per cent rise in residential mortgage balances to £3.2bn.
Atom launched in 2016 as one of the first app-based banks in the UK and obtained its banking license before rivals Monzo and Starling. However, it has struggled to expand as quickly as its competitors and does not offer checking accounts.
“As far as I’m concerned, building an outstanding company is better than building a great, mediocre one,” Mullen said. “The world doesn’t need another average bank.”
He said Atom was “fast.” . . easy to use and. . .[offered]customers a better deal” on interest rates.
A financing round led by shareholders such as the Spanish bank BBVA, the private equity firm Toscafund and the London-based Infinity Investment Partners gave it an opportunity Valuation of £362 million last year.
Atom said using technology for loan underwriting allowed it to offer in-principle deals for commercial loans within one business day.
In 2022, the challenger bank was forced to delay its IPO plans due to the difficult market. Mullen, who was previously chief marketing officer at HSBC’s first direct, said achieving profitability would give investors more confidence about a potential listing. However, he didn’t want to be “hostage to a date.”