New banks, Online Lenders

Customers Bank turns to OakNorth to help monitor its loans for COVID-19 crisis

  • Customers Bank, with $11 billion in assets, is using OakNorth's loan platform.
  • The two companies are looking for customer insights and actionability during the pandemic.
close

Email a Friend

Customers Bank turns to OakNorth to help monitor its loans for COVID-19 crisis

Customers Bank is partnering with OakNorth to monitor its loan book, a move that’s looking increasingly critical in the economic environment that will follow the COVID-19 crisis.

What’s happening: Customers Bank will leverage OakNorth Platform’s 360-degree loan monitoring.

  • Longer term, Customers Bank, with assets over $11 billion, will leverage OakNorth to gain more insight on its borrowers, and enhance its credit monitoring and portfolio management.
  • OakNorth’s Platform combines a deep understanding of credit, rich data sets, cloud-computing, and machine learning to provide bank partners with a platform to lend to this market.
  • The Platform provides Customers Bank with early warning indicators in case of deterioration in credit quality, which it can use to have preliminary conversations with borrowers before negative credit issues arise.

“Customers Bank uses a ‘high tech, high touch’ approach to delivering exceptional service,” said Jay Sidhu, chairman and CEO of Customers Bank. “We are optimistic about the economic recovery that will come in the months ahead. The platform should improve portfolio risk management through the use of big data and AI, while providing relationship managers with a deep understanding of their borrowers and industry verticals.” 

OakNorth stands out among challenger banks as it continues to scale and post profits.

  • The UK challenger bank OakNorth spun off its technology to work with other lenders to provide credit to the lower middle market — what it calls the ‘Missing Middle’ – a multi-trillion-dollar market.

“We built OakNorth to redefine business borrowing for the Missing Middle — the growth businesses who have been banking’s blind spot for decades but who are the backbone of economies and communities globally,” said Rishi Khosla, co-founder of OakNorth.

“Customers Bank has a clear understanding of the positive multiplier effect that supporting these businesses can have, and is partnering with us to ensure it can more holistically and profitably address their unique needs. Through enriched underwriting and leveraging credit science, we are providing partners such as Customers Bank with the insight and foresight to address the needs of the Missing Middle. Of course, we are currently in the midst of an unprecedented crisis, so in the short term, we will be working with Customers Bank to help it manage the portfolio risk associated with this.”

0 comments on “Customers Bank turns to OakNorth to help monitor its loans for COVID-19 crisis”

Member Exclusive, Online Lenders

Lending Briefing: The SMB Brexit, and digital lending VC funding

  • Given the recent announcement from expense management platform Brex to stop serving SMBs, how are its competitors looking to address the market?
  • We also take a look at the first quarter VC funding in fintech, and how lending compares to other verticals in the space.
Iulia Ciutina | June 22, 2022
Online Lenders

After integrating Afterpay with Square Cash App and Seller ecosystems, in-store sales are up 384%

  • Square is bringing Afterpay to in-store purchases, making it even easier to pay in 4.
  • Convenience may lead to overspending, especially when consumers stack their loans.
Rabab Ahsan | June 14, 2022
Member Exclusive, Online Lenders

Lending Briefing: Alternative data powering SMB lending, and the top US consumer lenders

  • Alternative data has been among the major driving factors for the rising interest in SMB lending, and fintechs are increasingly dominating the market.
  • Marcus by Goldman Sachs has ranked highest among personal loan lenders in overall customer satisfaction, according to a new study.
Iulia Ciutina | June 07, 2022
Online Lenders, Podcasts

Where Credit’s Due Ep. 2: How PayPal and Square use data and speed to drive growth in SMB lending

  • In this episode of Where Credit's Due, we'll be exploring the small business sector and how digital fintechs are meeting a lot of the demand for capital.
  • My guests this episode are Luke Voiles, general manager at Square Banking, and Bernardo Martinez, vice president of Global Merchant Lending at PayPal
Iulia Ciutina | June 07, 2022
Online Lenders

The unique banking needs of SMBs: 5 questions with Kabbage co-founder Kathryn Petralia

  • As the SMB sector is recovering after the pandemic, more small businesses report being in good health but are still being underserved by the incumbent financial services industry.
  • Kathryn Petralia, co-founder of SMB digital lender Kabbage, joins Tearsheet in a conversation about the unique financial needs of small businesses and what banks can do to address them.
Iulia Ciutina | May 19, 2022
More Articles