U.K.-based Atom Bank has been granted a license by the Bank of England, allowing the company to proceed with plans to launch retail banking products and services later this year, according to a press release.

These will be delivered exclusively through digital channels — initially mobile only, with an online version to follow, the release said. The FI will not have its own ATMs, but said it will provide access to cash through ATM networks in the U.K. and Europe.

Atom said it represents the first real alternative to traditional U.K. banks and is free of branch and legacy costs.

"We've set about designing a banking app that's in tune with how people think about their money," said the bank's chief operating and innovation officer Edward Twiddy. "Our customer service team will provide support and technical expertise to customers all-day and everyday by phone, chat and email and through social media. Our customers will also have access to the U.K. and international ATM network and the ability to pay in cash and checks when needed."

Atom was created with the support of a group of private individuals. Having raised 25 million pounds ($39 million) to build the bank, Chairman Anthony Thomson, CEO Mark Mullen and CFO Dave McCarthy are currently raising the balance sheet capital for Atom's launch, the release said.