Atom, a UK-based digital bank, has postponed plans to release current account, at least until 2018 because of forthcoming regulations.
Currently, the mobile bank has GBP 500 million in loans and deposits, but it has stalled its expansion plans, which involved launching current accounts, in spite of managing to secure funding of GBP 83 million in March 2017.
Mark Mullen, chief executive, blames new regulations for the delay, according to Financial Times. Current accounts have come under review by The Financial Conduct Authority (FCA), which will deliver its initial findings in 2018. This initiative could create more restrictions for current account providers.
In 2016, The Competition and Markets Authority finished its own two-year review of staple banking products, aiming to implement a digital standard to make open banking more accessible to consumers. However, the CMA does not have a complete picture of its technical standards and according to Mark Mullen, these continue to be the target of lobbying from within the industry.
Five new banks have started offering current accounts in the UK, from 2012 to 2016, bringing the total number to 36, the online publication continues. Consumers have access to almost 150 different current accounts, according to a 2016 study by financial products researcher Defaqto.