Atom Bank's sale process is nearing collapse after failing to attract bids at its £600 million asking price. The digital lender, backed by BBVA and Toscafund, has seen interest from potential buyers including Pollen Street Capital fall short of expectations. Yorkshire and Leeds Building Societies also evaluated but opted out.

Private equity firm Pollen Street submitted an offer below the target valuation, with sources indicating it is unlikely to significantly increase the bid. A Pollen Street acquisition would have enabled a merger with Tandem, another digital bank already in its portfolio. The lack of acceptable offers puts pressure on Atom's management team.

CEO Mark Mullen faces potential departure after 12 years leading the Newcastle-based bank, which counts 250,000 customers. Shareholders may push for leadership changes if no buyer emerges. Despite being among the UK's first branchless banks, Atom has struggled to match competitors like Revolut and Monzo in customer growth.

The attempted £600 million sale follows a £350 million valuation in last year's fundraising, down from £459 million in 2022. Atom reported £5.1 million in pre-tax profits in 2025, with £4.2 billion in mortgage balances and £7.5 billion in deposits. The outcome will test investor patience in the fintech sector.