OakNorth Bank explained

OakNorth Bank plc.[1]
Type:Private company
Industry:Banking
Foundation:[2]
London, England
Founders:Rishi Khosla
Joel Perlman
Location:London, United Kingdom
Num Employees:300+ (2023)

OakNorth Bank is a British bank for scaling businesses (typically with between £1m–£100m in turnover) that provides loans and both business and personal savings accounts. The bank, which gained regulatory approval in early 2015,[3] was founded by entrepreneurs Rishi Khosla and Joel Perlman, who had previously founded Copal Amba.[4] [5] The bank focuses on providing loans of £0.5m–£25m as well as savings accounts.

History

OakNorth Bank secured a full banking licence from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) in March 2015, and launched offering flexible debt financing and a range of savings accounts six months later in September 2015.[6] [7]

The Board is chaired by Cyrus Ardalan, former vice-chairman of public policy and government relations at Barclays Bank, and includes Harvard Business School faculty member and an ex-managing director of Bain Capital[8] Edward “Ted” Berk and Robert Burgess. In February 2021, Rajesh Gupta, formerly CFO at Kensington Mortgages, joined OakNorth Bank as its CFO.[9] OakNorth Bank also appointed Carolyn Schuetz, former Chief Operating Officer for Group Retail Banking at HSBC, and Timo Boldt, co-founder of Gousto, as Non-Executive Directors in July 2021 and August 2022 respectively.[10]

Lord Adair Turner, the former Chairman of the Financial Services Authority (now the Financial Conduct Authority) joined the bank's advisory board in May 2017 after previously holding the role of senior independent advisor on the OakNorth Bank board from 2015.[11] [12] He was joined in October 2018 by Martin Stewart, the former Director of Banks, Building Societies & Credit Unions at the Bank of England.[13] [14] In January 2020, Philip Hammond, the former UK Chancellor, became the latest member to join OakNorth's advisory board.[15] [16] [17] [18]

In May 2016, OakNorth became the first bank to be fully hosted on the cloud after working with Amazon Web Services (AWS) to drive the development forward with the regulator.[19] [20] [21]

In December 2021, OakNorth completed its first acquisition with a 100% takeover of accountancy cash flow provider, Fluidly.[22] In October 2022, OakNorth Bank acquired a 50% stake in specialist property lenders ASK Partners, to deepen its support for UK housebuilders and property entrepreneurs.[23]

In January 2023, OakNorth, alongside The Federation of Small Businesses (FSB) and other Fintech firms, wrote to the former British Secretary of State for Business and Trade, Grant Shapps, calling on him to improve small businesses’ access to borrowing. The group warned that failure to do so could further damage the UK’s economic growth prospects.[24]

In March 2023, OakNorth submitted a rescue bid for the UK arm of Silicon Valley Bank, being described in The Times as a “white knight”.[25]

In April 2023, Sharon Miles was appointed as the Group Chief Operating Officer.[26]

Operations

OakNorth Bank has offices in London and Manchester as well as regional hubs in Birmingham, Bristol, Leeds and East Anglia.[27] [28] [29] [30] It also has an India-based front office with customer-facing teams in Bengaluru, Gurugram and Hyderabad.

Loans

Since 2015, OakNorth Bank has lent over £8.5bn to businesses across the UK covering multiple sectors.[31]

OakNorth Bank has provided loans to several household names including: Leon Restaurants, Raymond Blanc’s Brasserie Blanc, and Yotam Ottolenghi’s eponymous restaurant and deli chain.[32] [33] [34] Outside of restaurant businesses, other high profile names that OakNorth Bank has funded include Deliciously Ella, Z Hotels, Arora Group, Staycity and Inception Group.[35] [36] [37] [38] [39]

Savings

OakNorth Bank offers a range of savings accounts for both businesses and personal use, including: fixed term savings accounts, notice accounts and easy access accounts, as well as fixed rate and easy access cash ISAs. OakNorth Bank’s savings accounts can be managed online and via its mobile app.[40]

Awards

In 2020, OakNorth Bank won:

In 2020, Financial Times also ranked the company at #1 on their list FT 1000: Europe's Fastest Growing Companies 2020.[43]

In 2021, OakNorth Bank won:

In 2022, OakNorth Bank won:

In 2023, OakNorth bank won:

Notes and References

  1. Web site: OakNorth Bank Limited . Companies House. 3 November 2016. OakNorthBankCompaniesHouse.
  2. Web site: Oaknorth Bank plc . . 28 December 2019.
  3. Web site: OakNorth gets banking licence, appoints Adair Turner to board. . en-GB. 2016-08-16.
  4. News: Rishi Khosla: Pioneer of Challenger Banking. 2015-05-26. Financial Times. 2023-02-07. en-US.
  5. News: OakNorth latest challenger bank on course to gain a licence. Dunkley. Emma. 2015-02-19. Financial Times. 2016-03-07. 0307-1766.
  6. News: Lord Adair Turner joins board of digital challenger bank OakNorth. Dunkley. Emma. 2015-03-09. Financial Times. 0307-1766. 2016-06-01.
  7. Web site: OakNorth gets banking licence, appoints Adair Turner to board. Reuters UK. en-GB. 2016-06-01.
  8. Web site: Lender @OakNorth has announced new additions to its board, find out who on @Bandcnews. bridgingandcommercial.co.uk. 2017-06-14.
  9. News: OakNorth Bank to appoint industry heavyweight, Rajesh Gupta, as CFO, who is to join from Kensington Mortgages. Innovate Finance. 2020-08-25.
  10. News: OakNorth Bank boosts Board with appointment of Carolyn Schuetz as a Non-Executive Director. Fintech Finance News. 2023-02-07.
  11. News: OakNorth boosts Board of Directors - IBS Intelligence. 2017-05-23. IBS Intelligence. 2017-06-14. en-US.
  12. News: Lord Adair Turner to quit OakNorth board for green energy ventures. 2017-05-15. Financial Times. 2023-02-07. en-US.
  13. News: OakNorth appoints form PRA director to board. Finextra. 2018-10-16. Finextra Research. 2018-10-24. en.
  14. News: Digital bank Oaknorth hires ex-Bank of England director. Nicolle. Emily. 2018-10-16. 2018-10-24. en.
  15. Web site: Philip Hammond joins advisory board of fintech OakNorth. Financial Times. en-GB. 2020-03-10.
  16. Web site: Philip Hammond joins digital lender Oaknorth as adviser. The Times. en-GB. 2020-03-10.
  17. Web site: Philip Hammond joins British bank OakNorth as adviser. The Guardian. en-GB. 2020-03-10.
  18. Web site: London Fintech OakNorth appoints Philip Hammond to Board. BusinessCloud. en-GB. 2020-03-10.
  19. Web site: OakNorth moves core banking backbone to Amazon Web Services cloud. 2016-05-26. Finextra Research. 2016-06-01.
  20. News: OakNorth takes UK banking into the cloud. Financial Times . 27 May 2016 . subscription . 2016-06-01.
  21. Web site: OakNorth shifts systems to cloud with AWS - IBS Intelligence. 2016-05-26. IBS Intelligence. en-US. 2016-06-01.
  22. Web site: OakNorth acquires smart cashflow firm Fluidly to boost SME support. 2021-12-13. UK Tech News. en-US. 2023-02-07.
  23. Web site: OakNorth buys 50% stake property lender ASK Partners. 2022-10-11. UK Tech News. en-US. 2023-02-07.
  24. Web site: Conchie . Charlie . Oaknorth and Atom Bank call on Grant Shapps to boost lending to small businesses . City A.M . 24 January 2023 . 2023-06-27.
  25. Web site: Katie Prescott, Oliver Wright, Ben Martin, James Hurley . Silicon Valley Bank: multibillion-pound bailout for UK tech planned . The Times . 2023-06-27.
  26. Web site: Woffenden . Claire . This Week in Fintech: TFT Bi-Weekly News Roundup 18/04 . The Fintech Times . 18 April 2023 . 2023-06-27.
  27. News: New challenger bank OakNorth set to launch with marketing base in Manchester. Prolific North. 2016-11-03.
  28. Web site: OakNorth Bank: the new lender founded by entrepreneurs (rather than bankers!) which is taking a traditional approach. Healthcare Business. en-GB. 2020-03-10.
  29. Web site: OakNorth Bank opens Birmingham office to support businesses in the Midlands. Healthcare Business. 6 December 2019 . en-GB. 2020-03-10.
  30. News: Challenger bank OakNorth expands regional presence. Belfasttelegraph.co.uk. 28 April 2019 . en-GB. 2020-03-10.
  31. Web site: Rishi Khosla: The youth who think. Crast.net. 9 December 2022 . en-GB. 2023-02-07.
  32. Web site: Leon secures £19 funding towards expansion. Big Hospitality. 7 August 2016 . en-GB. 2023-02-07.
  33. Web site: Brasserie Bar Co secures £20m finance deal to open 24 new sites. The Caterer. 28 June 2017. en-GB. 2023-02-07.
  34. Web site: Meal kits and online shop help Ottolenghi improve margins. The Caterer. 10 January 2022 . en-GB. 2023-02-07.
  35. Web site: It's terrifying but we had to do it, say Deliciously Ella founders. The Times. en-GB. 2023-02-07.
  36. Web site: Challenger bank Oaknorth loans a further £7.3m to Z Hotels for new London sites in Covent Garden, Holborn and Tottenham Court Road. City AM. 12 June 2018 . en-GB. 2023-02-07.
  37. Web site: OakNorth Bank completes £50m loan to Arora Group. Business Leader. 5 October 2020 . en-GB. 2023-02-07.
  38. Web site: Staycity takes loan with OakNorth and opens its largest property in Europe. Serviced Apartment News. en-GB. 2023-02-07.
  39. Web site: Inception Group secures OakNorth funding for three new bars. Specialist Banking. en-GB. 2023-02-07.
  40. Web site: OakNorth mobile banking. Apple . en-GB. 2023-02-07.
  41. Web site: MoneyComms Top Performers 2020. MoneyComms. 18 July 2021 . en-GB. 2023-02-07.
  42. Web site: Moneyfacts Award Winners 2020. Moneyfacts. en-GB. 2023-02-07.
  43. News: OakNorth ranks top in FT 1000 list by providing loans for smaller businesses. Financial Times. Cundy. Antonia. March 23, 2020. August 19, 2020.
  44. Web site: MoneyAge National Credit Awards Winners 2021. Money Age. en-GB. 2023-02-07.
  45. Web site: HealthInvestor Winners 2021. Health Investor. en-GB. 2023-02-07.
  46. Web site: EG Tech Awards 2021 – Winners. EG. en-GB. 2023-02-07.
  47. Web site: Yorkshire Business Masters 2022. The Business Desk. en-GB. 2023-02-07.
  48. Web site: West Midlands Business Masters 2022. The Business Desk. en-GB. 2023-02-07.
  49. Web site: Winners revealed at East Midlands Business Masters Awards. The Business Desk. en-GB. 2023-02-07.
  50. Web site: Insider Central and East of England Dealmakers Award Winners 2022. Insider Media. 3 November 2022 . en-GB. 2023-02-07.
  51. Web site: Darragh . Dan . Winners Announced 2023 Savings Champion Awards . Savings Champion . 2023-06-27.