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

‘Our ultimate goal is to be number one in the U.S.market’: Behind Temenos’ new push in the US with Jacqueline White, president of the Americas

  • Jacqueline White joined Temenos as president of the Americas at the beginning of 2021.
  • She joins the podcast to talk about what she's seeing in the market and her plans for growing the software firm's footprint in the U.S.
Zachary Miller | March 23, 2021
New banks, Podcasts

‘Ever since I dreamed up Greenlight, investing was always part of it’: Tim Sheehan on the launch of Greenlight Max

  • Greenlight is a quickly-growing financial app targeting teens and their parents.
  • The company just released investing technology to help kids learn good habits of investing by doing it.
Zachary Miller | March 17, 2021
New banks

How fintechs are working with banks to make them more green

  • The financial ecosystem seems to be getting greener.
  • Can fintechs help banks provide greener financial solutions?
Rivka Abramson | March 15, 2021
New banks

‘The financial industry was not built to serve the needs of melanated people because we were excluded from its construction’: Visa partners on crypto with First Boulevard

  • Visa partnered with digital bank First Boulevard for the anticipated launch of its crypto API pilot program.
  • The challenger bank which is focused on increasing financial inclusion for the Black community will enable its customers to purchase, trade and custody digital assets.
Rimal Farrukh | February 25, 2021
New banks

‘It’s difficult for a smaller, local bank to compete against the mega banks’: Inside Trustco Bank’s evolving digital experience

  • New York’s Trustco Bank recently implemented a digital banking platform to improve customer user experiences.
  • The local bank has witnessed over a 50 percent increase in mobile deposits.
Rimal Farrukh | February 11, 2021
More Articles