21 October 2017
Find out more

OakNorth joins unicorn club with £154m funding round

12 October 2017  |  4832 views  |  0 golden egg

OakNorth, a UK challenger bank targeting small- and medium-sized businesses, is looking to ramp up lending and license its technology around the world after raising £154 million from a group of international investors.

Singapore-based The Clermont Group, Toscafund Asset Management, and Coltrane Asset Management participated in the round, buying a 16% stake, pushing OakNorth into the unicorn club.

One of a host of new entrants to the UK banking market, OakNorth bills itself as a bank for entrepreneurs, providing loans of between £500,000 and £20 million to small firms, although it also has regulatory approval to accept deposits and offer saving products.

Launched in September 2015, the bank has a loan book of over £800 million and claims to have helped with the creation of over 3000 new homes and 2000 new jobs, adding £3 billion to the UK economy.

The firm has set a target of lending a further £1.5 billion to UK businesses next year and is also planning to go global by licensing its Acorn data and technology platform to other lenders.

Acorn's cloud-based technology sources millions of data items on SMEs across various parameters, sectors, and markets, and then uses machine learning algorithms to pull out the pieces of data that lenders need to make informed credit decisions.

According to Sky News, advanced talks are underway with several North American banks about licensing Acorn.

Rishi Khosla, CEO, OakNorth, says: "Rather than building a technology platform and then going to market trying to sell it, we wanted to build the platform and prove the concept in a highly regulated and highly competitive market - the UK - via OakNorth. Through Acorn we will be able to help lenders around the world unlock the underserved and underestimated market for bespoke loans to SMEs."
KeywordsCLOUDFINDEX

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

OakNorth moves core banking backbone to Amazon Web Services cloud

OakNorth moves core banking backbone to Amazon Web Services cloud

26 May 2016  |  9339 views  |  0 comments | 9 tweets | 9 linkedin
Indian group acquires 40% stake in UK challenger OakNorth

Indian group acquires 40% stake in UK challenger OakNorth

13 November 2015  |  4525 views  |  0 comments | 4 tweets | 3 linkedin
UK challenger OakNorth Bank signs for Mambu core platform

UK challenger OakNorth Bank signs for Mambu core platform

22 October 2015  |  5126 views  |  0 comments | 4 tweets | 3 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.innotribe.comRegister nowvisit www.vasco.com

Top innovation topics

Most viewed Most shared
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
8773 views comments | 22 tweets | 26 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
7169 views comments | 10 tweets | 22 linkedin
hands typing furiouslyApplying some intelligence to Artificial I...
5541 views 0 | 2 tweets | 5 linkedin
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
5386 views comments | 15 tweets | 12 linkedin
Fidelity exploits virtual reality for 'empathy training'Fidelity exploits virtual reality for 'emp...
5307 views comments | 7 tweets | 11 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job