- Subject to regulatory approval, OakNorth Bank will recast small business lending, using new technology and diverse types of collateral
- It will offer competitive short-term working capital loans and term loans as flexible capital to growth SMEs, and savings products to retail customers, subject to regulatory approval
- Advanced financial technology will enable faster service and a better customer experience than many of its peers
- OakNorth is founded by Rishi Khosla and Joel Perlman, who built Copal Amba into a global brand and industry leader, which was acquired by Moody’s Corporation in 2014
A new British bank will open its doors in summer 2015, subject to regulatory approval, to serve the thousands of growth SMEs that play a pivotal role in the UK economy, but have been structurally under-served as compared to other markets such as the US.
OakNorth will offer short-term working capital loans and term loans on a flexible basis to growth SMEs, as well as competitive savings products to retail customers. The bank will use advanced financial technology that marks a sea change in a traditional industry, and will enable faster service and a superior customer experience to many of its peers. It will accept multiple collateral types not just property, unlike much of the secured lending offered to SMEs by major banks.
The bank is for entrepreneurs, built by entrepreneurs, it is founded and backed by Rishi Khosla (CEO) and Joel Perlman who are currently transitioning out of Copal Amba which they previously founded and developed into a 2,500 employee global brand and industry leader, acquired by Moody’s Corporation in 2014.
OakNorth’sfintech platform will enable short-term working capital loans to be accessed within short time frames, through a customer friendly process and is designed to provide a distinctive customer experience. The model is designed so customers don’t need to sacrifice speed of application and likelihood of success to access a good rate.
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Term loans will be offered through Relationship Managers at regional offices, initially in London and Manchester.
“Growth companies provide half of all employment growth in Britain, but have been neglected by banks in favour of big business,” said Rishi Khosla, founder of OakNorth.
“When smaller growth companies have tried to access loans, they have often been refused, required security against property or been served at a glacial pace. That’s why we’re launching OakNorth – to use financial technology and a new approach to lending that gives smaller growth companies a banking service one would normally associate with larger corporate clients.”