Manchester-based bank aims to boost SME lending

Business lender OakNorth Bank, which has an office in Manchester, is set to launch its first two savings accounts geared towards entrepreneurs after receiving the greenlight from regulators.

The Prudential Regulation Authority and Financial Conduct Authority have both given the company the go-ahead to provide retail deposit products.

The bank’s CEO, Rishi Khosla, commented: “Ever since the seed was planted for OakNorth several years ago, we have worked tirelessly to create a bank that specifically meets the needs of small business owners.

“Savers play a pivotal role in this. Bringing them these accounts today is an important step forward for us as we begin to shake up lending to smaller businesses.”

He added: “The government has recognised the need to finance small businesses, but is ending the Funding for Lending scheme in January 2016. By saving with OakNorth savers get competitive rates and at the same time help the SME community.”

The introduction of the two savings accounts forms part of OakNorth’s plan to lend £1bn to SMEs between now and 2020.

The new accounts, which offer entrepreneurs 15 and 30-month fixed-term deposits, have been launched because SME lending, according to OakNorth, is dominated by property-backed loans that fail to cater for many small businesses.