OakNorth Bank

OakNorth Bank plc[1]
Public limited company
Industry Banking
Founded 2015 (2015)
London, England
Founders Rishi Khosla
Joel Perlman
Headquarters OakNorth Bank plc
57 Broadwick Street
London
W1F 9QS
England
Key people
  • Cyrus Ardalan (Chairman)[1]
    Graham Olive (Deputy CEO)
    Cristina Alba-Ochoa (CFO)
Products Business Loans
Property Development Finance
Deposits
Number of employees
 130+(2017)
Website www.oaknorth.com,www.oaknorth.in

OakNorth is a UK bank that lends between £500,000 to £40m to businesses and property developers. The bank, which gained regulatory approval in early 2015,[2] was founded by entrepreneurs Rishi Khosla and Joel Perlman, who had previously founded Copal Amba.[3]

In October 2017, the bank announced that it had secured a £160m investment from Clermont Group, Toscafund and Coltrane for a c.16% stake in the business, valuing the company in excess of $1bn.[4][5]

In November 2017, it was announced that GIC had purchased a c.10% stake from Indiabulls for £90m.[6][7]

The bank's 2017 annual results revealed that it made £10.6m pre-tax profit and that it has repaid all its accrued losses.[8][9][10]

In September 2018, the ACORN OakNorth group announced that it had secured a $100m at a $2.3bn valuation from new investors (NIBC Bank and The Economic Development Board of Singapore), as well as existing investors (Clermont Group, GIC, and Coltrane)[11][12].

It is the first installation of ACORN machine, a fintech platform.[13][14][15]

History

OakNorth secured a full banking licence from the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) in March 2015 and began deposit taking and lending six months later.[16][17]

The Board is chaired by Cyrus Ardalan, former vice-Chairman of public policy and government relations at Barclays Bank; and includes the former president of online brokerage E*TRADE, Navtej Nandra, and Edward “Ted” Berk, a faculty member at Harvard Business School, and an ex-managing director of Bain Capital.[18][19][20]

Lord Francis Maude, former Minister for the Cabinet Office and former Minister for Trade and Investment, joined the bank as an independent adviser in September 2016.[21] Lord Adair Turner, the former Chairman of the Financial Services Authority (now the Financial Conduct Authority) is also on the bank's advisory board.[22] Nick Lee, the former Head of New Banks at the Prudential Regulation Authority, Bank of England is also on the advisory board.

In May 2016, OakNorth became the first bank in the UK to have its core system fully hosted on the cloud after working with Amazon Web Services (AWS) to drive the development forward with the regulator.[23][24][25]

The bank's investors include: Indiabulls Housing Finance, The Clermont Group, Toscafund, Coltrane, NIBC Bank, The Economic Development Board of Singapore, and GIC.[26][27][28][29]

Operations

The bank provides £500,000-£40m business loans, property development finance, and property investment loans, as well as a range of savings accounts. The bank considers stock, debtors, fixtures and fittings, plant and machinery, intellectual property, and real estate as collateral.[30][31][32]

It has offices in London, Manchester[33] and New Delhi.[34]

References

  1. 1 2 "OakNorth Bank Limited at Companies House". Retrieved 3 November 2016.
  2. ↑ "OakNorth gets banking licence, appoints Adair Turner to board". Retrieved 2016-08-16.
  3. ↑ "The Big Interview: OakNorth Bank - IBS Intelligence". IBS Intelligence. 2016-11-10. Retrieved 2017-04-04.
  4. ↑ White, Lucy (2017-10-12). "Challenger bank OakNorth hits unicorn status as it grabs £154m". Retrieved 2017-10-13.
  5. ↑ "Challenger bank OakNorth hits 'unicorn' status with new funds". Sky News. Retrieved 2017-10-13.
  6. ↑ "Singapore's GIC takes $120 million stake in Britain's OakNorth bank". Reuters. 2017-11-03. Retrieved 2017-11-06.
  7. ↑ "Singapore state fund snaps up stake in UK lender OakNorth". Sky News. Retrieved 2017-11-06.
  8. ↑ "Subscribe to read". Financial Times. Retrieved 2018-04-06.
  9. ↑ Browne, Ryan (2018-03-26). "UK digital bank that beat peers to an annual profit 'will go into' China — eventually". CNBC. Retrieved 2018-04-06.
  10. ↑ Finextra (2018-03-21). "OakNorth moves into profit". Finextra Research. Retrieved 2018-04-06.
  11. ↑ "Subscribe to read". Financial Times. Retrieved 2018-09-10.
  12. ↑ "Challenger bank OakNorth hits $2.3bn valuation". BusinessCloud.co.uk. Retrieved 2018-09-10.
  13. ↑ "OakNorth Receives £154M Investment". FinSMEs. 2017-10-12. Retrieved 2017-10-13.
  14. ↑ Finextra (2017-10-12). "OakNorth joins unicorn club with £154m funding round". Finextra Research. Retrieved 2017-10-13.
  15. ↑ "UK's newest unicorn notches £10.6m profit for 2017 - AltFi News". AltFi. Retrieved 2018-04-06.
  16. ↑ Dunkley, Emma (2015-03-09). "Lord Adair Turner joins board of digital challenger bank OakNorth". Financial Times. ISSN 0307-1766. Retrieved 2016-06-01.
  17. ↑ "OakNorth gets banking licence, appoints Adair Turner to board". Reuters UK. Retrieved 2016-06-01.
  18. ↑ White, Lucy (2017-05-22). "OakNorth makes two heavyweight hires". Retrieved 2017-06-14.
  19. ↑ "Subscribe to read". Financial Times. Retrieved 2017-06-14.
  20. ↑ "Lender @OakNorth has announced new additions to its board, find out who on @Bandcnews". bridgingandcommercial.co.uk. Retrieved 2017-06-14.
  21. ↑ "Oaknorth Bank set to hire Lord Francis Maude". The Telegraph. Retrieved 2017-01-05.
  22. ↑ "OakNorth boosts Board of Directors - IBS Intelligence". IBS Intelligence. 2017-05-23. Retrieved 2017-06-14.
  23. ↑ "OakNorth moves core banking backbone to Amazon Web Services cloud". Finextra Research. 2016-05-26. Retrieved 2016-06-01.
  24. ↑ "OakNorth takes UK banking into the cloud". Financial Times. Retrieved 2016-06-01. (Subscription required (help)).
  25. ↑ "OakNorth shifts systems to cloud with AWS - IBS Intelligence". IBS Intelligence. 2016-05-26. Retrieved 2016-06-01.
  26. ↑ "OakNorth Receives Further £90M Investment from GIC". FinSMEs. 2017-11-03. Retrieved 2017-11-06.
  27. ↑ Goldsmith, Courtney (2017-11-02). "Singapore state fund in talks to buy a stake in OakNorth". Retrieved 2017-11-06.
  28. ↑ "Oaknorth receives £90m investment from GIC". Bridging Loan Directory. 2017-11-03. Retrieved 2017-11-06.
  29. ↑ "OakNorth valuation tops $2bn after latest fundraise - AltFi News". AltFi. Retrieved 2018-09-10.
  30. ↑ Dunkley, Emma (2015-03-09). "Lord Adair Turner joins board of digital challenger bank OakNorth". Financial Times. ISSN 0307-1766. Retrieved 2016-03-07.
  31. ↑ Khosla, Rishi (2015-12-10). "Understanding the assets in your business". BusinessZone. Retrieved 2016-11-03.
  32. ↑ "Technology key as challenger bank OakNorth gets licence". ComputerWeekly. Retrieved 2016-11-03.
  33. ↑ "New challenger bank OakNorth set to launch with marketing base in Manchester". Prolific North. Retrieved 2016-11-03.
  34. ↑ Dunkley, Emma (2015-02-19). "OakNorth latest challenger bank on course to gain a licence". Financial Times. ISSN 0307-1766. Retrieved 2016-03-07.
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