New banks

Challenger bank OakNorth triples profits

  • OakNorth is a UK challenger bank that's really focused on lending.
  • It also announced it would donate 1 percent of future profits to charity and social entrepreneurship.
close

Email a Friend

Challenger bank OakNorth triples profits

UK challenger bank OakNorth announced a £33.9m profit for 2018, up 220 percent from 2017.

What’s going on: OakNorth has taken a different approach to scaling a challenger bank — one that contributes to its early profitability. Instead of creating a bank for the masses, OakNorth is really a lender at heart. It uses its digital current account offerings to help fund its lending portfolio. The bank claims it has 40,000 savings customers, compared to N26 and Revolut which have each opened millions of accounts.

The heart of a lender: OakNorth is a selective underwriter, lending £0.5M to £40M to profitable, scale-up, British businesses, like LEON, Brasserie Bar Co., NetPay, TritonExec, Regal London, Baird Capital, Rockpool Investments, Galliard, Frogmore, and The Collective. The bank has lent out £3B since its launch in September 2015.

Introducing a social componentt: OakNorth also announced it would donate 1 percent of future net profit to charitable causes and social entrepreneurship.

“To date, we’ve lent £3B to growth businesses across the UK, helping them achieve their ambitions whilst simultaneously enabling the creation of 10,000 new homes and 13,000 new jobs,” said Rishi Khosla, CEO and co-founder of OakNorth.

“The companies we are lending to are home-builders, job-creators, productivity-boosters, and drivers of GDP growth, which have a transformative impact on our community and the health of the wider economy. To continue reinforcing this positive cycle, we will be donating 1 percent of group profits to supporting charitable causes and social entrepreneurship.”

The company published its 2018 financial results yesterday.

0 comments on “Challenger bank OakNorth triples profits”

New banks

With OCC approval of Radius Bank, LendingClub is one step closer to becoming a marketplace bank

  • LendingClub’s merger with Radius Bank received conditional approval by the OCC.
  • The approval marks the latest stage in the acquisition which will transform LendingClub into a marketplace bank.
Rimal Farrukh | January 11, 2021
New banks

Green Dot launches Go2bank, its in-house challenger bank

  • Green Dot is best known for its prepaid cards and managed debit card programs its managed for big brands.
  • The bank has launched its own challenger bank brand to compete head on in digital banking.
Zachary Miller | January 06, 2021
New banks

Quontic is first bank to offer bitcoin rewards on debit card purchases

  • Quontic Bank released a checking account that pays rewards in bitcoin.
  • 20 percent of their consumers indicated that they would switch their checking account to one which rewards them in bitcoin
Rimal Farrukh | December 29, 2020
New banks

With PPP powering account growth, Radius Bank upgrades its business banking

  • Radius Bank launched its small business banking platform and mobile app.
  • The revamped service allows SMBs to smoothly transition across accounts as well as deposit checks, pay bills and make transactions.
Rimal Farrukh | December 28, 2020
New banks

2020 in review: The year of the pandemic as seen through Tearsheet’s top stories

  • 2020 was a massive year in the world and in financial services.
  • Through the prism of Tearsheet's reporting, we look back at the year that was.
Zachary Miller | December 28, 2020
More Articles