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- A meaningful free-trade agreement could maintain access to vital cross-border banking services
- Halifax joins forces with Google to help understand property terms
- Mobile money could pave way for economic stability in emerging economies, according to the LSE
- PIMFA signs HM Treasury’s Women in Finance Charter expired
- KeyBank earns 10th perfect score on Corporate Equality Index expired
- Attracting millennials to financial services is a challenge, according to Robert Half expired
- Paradise Papers will cause more regulation for wealth managers, says GlobalData expired
- Plaza premium lounges accept Alipay at Heathrow Airport expired
- Prospect of rate rise boosted remortgaging in September expired
17th October 2017
OakNorth secures new investment to boost UK businesses in 2018
OakNorth has been able to unlock the bespoke lending market for SMEs through the ACORN data and technology platform, which will now be available to lenders in other geographies. ACORN enables lenders to originate, underwrite, monitor, and book transactions faster, more efficiently and with more rigour.
Its 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 more informed credit decisions. ACORN’s team of credit analysts and data scientists manage the process, training the machine learning algorithms, so that the platform continues to evolve.
The funding will enable OakNorth to significantly boost its contribution to the UK economy, and launch ACORN to lenders around the world. The three investors – The Clermont Group, Toscafund and Coltrane – have purchased a c.16 per cent stake. The financial advisers on the funding round were Morgan Stanley and Citi. Proskauer was the legal adviser.
Rishi Khosla, CEO and co-founder of OakNorth, said: “It has been an incredible and extremely humbling two years for OakNorth – we’ve had the chance to work with some of the UK’s most inspiring and ambitious entrepreneurs, and have helped over 150 businesses achieve their growth ambitions. While we have reached an £800m loan book in two years, we know that this represents just a fraction of the businesses that need financing support. This funding will enable us to boost our lending by an additional £1.5bn and add thousands more jobs and homes in the UK.
“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.”