Sumitomo Mitsui Bank is to use credit intelligence software from OakNorth to boost its commercial leanding operations and has acquired a $30 million stake in the UK challenger bank and tech supplier.
SMBC intends to use OakNorth's credit and monitoring analytics across its loan book in the US and Asia, improving the quality, consistency and speed of commercial lending decision making.
Through analysing each borrower’s data in the context of its geography and sector and monitoring a borrower against its peers, the software is able to alert lenders when a loan, or borrower needs attention as well as assisting in regulatory reportinmg.
In addition to the deployment, SMBC has participated in a secondary purchase of shares, making ane investment of $30m in OakNorth Holdings Limited.
Toru Nakashima, Group CFO and CSO, comments: “Through this investment and the upcoming business alliance with OakNorth, SMBC strives to create new added value by bringing a high level of sophistication to its corporate lending platforms. We are further harnessing the power of AI through big data and machine learning across our strategic markets in South East Asia, such as Indonesia.”s.
Since its inception in 2015, OakNorth has secured over $1bn from leading investors, including: Clermont Group, Coltrane, EDBI of Singapore, GIC, NIBC, Toscafund, SMBC, and SoftBank.