UK-based Atom Bank has partnered with climate tech company Kamma to address the risks of climate change. Through this collaboration, Kamma provides analytics on Atom’s financed emissions, PCAF scoring, and climate credentials on pools of assets for the purposes of securitisation.

As climate-related disasters continue to create losses on every continent, customers, investors, and regulators highlight the need for banks to understand how their lending is affecting the environment. The partnership’s benefits and objective In addition to the report and disclosure requirements for banks and large listed businesses, the UK’s Government legislative pipeline must also include new regulations and risks for mortgage lenders. Transforming the country’s property stock represents a critical point in reducing costs for households and eliminating harmful emissions. Kamma’s solutions aim to provide Atom Bank with clear guidance supporting risk management, regulatory reporting, and green asset qualification.

The bank pledged to become a carbon-positive entity by 2035, with its digital cloud-native business model already being less impactful on the environment than traditional banking models. Atom Bank’s chosen premises and policy for the selection of suppliers are aimed at further reducing emissions. Atom plans to address financed emissions by using advanced analytics to help the bank and its customers reduce their carbon footprint. In the first phase of the partnership, Kamma aims to review the mortgage portfolio and strategic support of Atom Bank, while phase two includes the development of new propositions, products, and customer journeys.

According to officials, Atom Bank’s main objectives are to use technology to ensure an accurate measurement of emissions, understand risk, as well as help its customers reduce their bills, increase the value of their property, and be prepared for a zero-carbon future. Kamma’s mission Based in the UK, Kamma utilises its live dataset to develop software that monitors agent portfolios for compliance, aiming to protect businesses, reduce operational costs, and ensure that tenants are living in a safe environment. The company’s solutions transform complex and disparate information into ordered and centralised datasets, wanting to create user-friendly products that offer simplified data to a variety of industries. Moreover, Kamma’s software tracks legal regulations and its client’s properties to ensure compliance and eliminate fees.

Atom Bank’s past developments At the beginning of September 2023, Atom Bank called off a GBP 700 million merger with a special purpose acquisition company (SPAC) but may still IPO on the London Stock Exchange. Allegedly, the fintech has been interviewing banks about roles relating to an IPO, with Atom Bank previously stating that it has been looking to go public, aiming for a 2023 public launch. Moreover, in August 2023, Atom Bank committed to the Standards of Lending Practice (SLP) for business customers, wanting to protect small and medium enterprises. The full registration came after a period of interim status, in which Atom worked with the Lending Standards Board (LSB) to complete an end-to-end analysis of its existing policies, processes, and procedures to verify if the bank met SLP’s standards.

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