Theo Fennell Owner Backs Digital Lender Atom

The owner of Theo Fennell, the upmarket jeweller, is among a high-profile cast of shareholders backing Atom, the digital-only British bank which is targeting a launch next year.

Sky News understands that EME Capital, which took Theo Fennell private last year and whose principals have also been involved with the transformation of the luxury car-maker Aston Martin, has bought a small stake in Atom.

EME's investment was not disclosed on a list of investors announced by Atom on Thursday, who included the former Goldman Sachs (NYSE: GS-PB - news) economist Jim O'Neill, and Neil Woodford, the City's most prominent fund manager.

Sky News had previously disclosed that Paul Pindar, former chief executive of the outsourcing group Capita (LSE: CPI.L - news) , and Jeremy Middleton, the co-founder of Homeserve (LSE: HSV.L - news) , were also becoming shareholders in Atom.

The latest fundraising is understood to value the nascent bank at around £30m, with investors confident that it can rapidly build scale once it gets the green light from banking regulators.

Mr Woodford's investment is notable because he recently announced the sale of his last remaining shareholding in a UK bank - HSBC - because of the ongoing risk of conduct-related fines haunting established high street lenders.

News of the capital-raising emerged on the same day that Lloyds Banking Group, Britain's biggest high street lender, confirmed a report by Sky News that it is axing 9,000 jobs as it moves to offer more digital services.

Atom has been founded by Anthony Thomson, the driving force behind the launch of Metro Bank in the UK four years ago, and Mark Mullen, the former boss of First Direct, which is owned by HSBC and frequently tops customer service polls.

The digital-only venture, which is based in the North East, is seeking regulatory approval from the banking and City watchdogs.

It believes it can build a profitable business by exploiting growing demand for digital banking, without the costly overheads associated with physical branch networks and liabilities from historic product mis-selling.

Atom has also hired some well-connected board members, including Lord McFall, the former chairman of the Treasury Select Committee.

He joined the venture as a non-executive director several weeks ago, having previously served on the board of NBNK Investments, a vehicle set up - ultimately unsuccessfully - to acquire assets from the bailed-out banks.

EME declined to comment.