OakNorth

About OakNorth

OakNorth: The Digital Bank Specializing in SME Financing in the United Kingdom OakNorth is a British digital bank that has established itself as an essential player in the financing of small and medium enterprises (SMEs) in the United Kingdom. Founded in 2015 by two visionary entrepreneurs, this neobank revolutionized the traditional approach to business lending by combining cutting-edge technology with human expertise. Unlike large traditional banks that struggle to effectively serve the SME segment, OakNorth designed a model entirely centered on the specific needs of these businesses, offering tailored loans, competitive savings accounts, and personalized support. For any inquiries, contact is made via app, which perfectly reflects the digital philosophy of this innovative financial institution. Since its creation, OakNorth has lent over £10 billion to British businesses, with a remarkably low default rate thanks to its proprietary AI-powered credit analysis platform. This exceptional performance has attracted the attention of leading investors, including SoftBank, which participated in several funding rounds. OakNorth stands out in the UK banking landscape through its ability to make fast and informed lending decisions, where traditional banks impose timelines of several months. The official website oaknorth.com is the main entry point for discovering all the services offered by this innovative digital bank.

Table of Contents Background and History of OakNorth Offers and Pricing Platform Features Additional Services Security and Regulatory Compliance Customer Service Customer Reviews and Reputation Comparison with Starling Business, Tide, and iwoca Detailed Case Studies International Expansion and Future Outlook

1. Background and History of OakNorth OakNorth's story begins in 2015, when Rishi Khosla and Joel Perlman, two entrepreneurs who had themselves experienced the difficulties of accessing credit for SMEs, decided to create a bank that would solve this fundamental problem. Before founding OakNorth, Rishi Khosla had co-founded Copal Partners, a financial research services company that he sold to Moody's in 2014. Joel Perlman was also a co-founder of the same company. This experience in the financial sector had given them an intimate understanding of the shortcomings of the traditional banking system in SME financing. The starting observation was simple yet revealing: in the UK, SMEs represent more than 99% of businesses and employ approximately 60% of the private sector workforce. Yet these businesses had extremely limited access to bank credit, particularly in the loan range between £500,000 and £50 million. Major traditional banks considered these amounts too small to justify in-depth credit analysis, and alternative financing solutions were often too expensive or ill-suited. OakNorth was born from the desire to bridge this gap, using technology to make financing viable and profitable for this category of businesses. In November 2015, OakNorth obtained its full banking license from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), the UK financial regulators. This license allows it to collect deposits and grant loans as a fully-fledged banking institution, an important distinction from mere fintechs that operate without a banking license. From its first months of operation, OakNorth demonstrated its ability to grant loans quickly and efficiently, often in just a few weeks, where traditional banks took several months. The development of OakNorth's technology platform marked a decisive turning point in the bank's history. The founding team invested heavily in developing ACORN Machine, an AI and machine learning-based credit analysis system. This platform enables in-depth analysis of each potential borrower's financial situation, integrating macroeconomic, sector-specific, and company-specific data. Thanks to ACORN Machine, OakNorth can assess credit risk with unprecedented precision, enabling it to offer competitive rates while maintaining an extremely low default rate. OakNorth's growth has been spectacular. In 2017, just two years after its launch, the bank had already lent over £1 billion. By 2019, this figure had reached £4 billion, and OakNorth had generated its first profits — a rare feat for a neobank so young. This early profitability distinguished OakNorth from many other fintechs and neobanks that accumulate losses for years before reaching financial break-even. In-app contact allows existing and potential customers to track this evolution in real time and benefit from the platform's latest innovations. OakNorth's successive funding rounds attest to investor confidence in the bank's model. In 2017, the bank raised $83 million from a consortium of investors. In 2019, SoftBank Vision