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

Banking software providers are helping their clients go digital

  • Small banks and credit unions need to digitize to compete in an evolving industry.
  • Experts say open banking is the way to go.
Shehzil Zahid | May 11, 2021
New banks

‘Our sweet spot is healthcare’: Laurel Road for Doctors takes niching down one step forward

  • The demand for personalized digital banking products is booming.
  • And with that, companies like Laurel Road and KeyBank may need to figure out a way to become niche ninjas.
Rivka Abramson | May 10, 2021
New banks

Challenger bank Fortú targets Latinos in the U.S.

  • Fortú serves the underbanked and unbanked Latino communities in the U.S.
  • The digital bank uses the Galileo payments platform.
Ismail Umar | May 06, 2021
New banks

As gig work tops $1 trillion in the U.S, workers demand more real time payouts

  • Pandemic related loss of income has spurred an increased interest in gig economy work.
  • Branch and Marqeta’s report shows that 94 percent of gig workers associate faster payouts with financial security.
Rimal Farrukh | May 05, 2021
New banks

As it prepares to go public, MoneyLion is growing quickly, reducing losses

  • Challenger bank MoneyLion grew its revenue by 32 percent, reaching $79.4 million for the full year of 2020, according to its latest earnings report.
  • The fintech is tapping into the cryptocurrency world through its partnership with digital asset platform ZeroHash.
Rimal Farrukh | April 30, 2021
More Articles