Challenger bank OakNorth to power US expansion with £340m investment
The company behind challenger bank OakNorth has received a $440m (c.£340m) boost to grow its analytical intelligence platform and expand in the US.
OakNorth Holdings secured the nine-figure backing, announced today (February 8), from the SoftBank Vision Fund and Singapore-based Clermont Group.
The deal has taken the company’s total funding past the $1bn mark, which is more than any other fintech business in Europe.
OakNorth will use the financing to launch its lending operations in the US, equipping North American lenders with the capability to expand their SME lending opportunities.
It will also allow the bank to deploy its OakNorth Analytical Intelligence platform to more banks and lenders internationally. The tech is currently used by institutions across Asia, North America and Europe.
Since launching in September 2015, OakNorth’s loans have directly helped create more than 9,500 new homes and 11,000 jobs in the UK.
OakNorth Holdings co-founder Rishi Khosla said: “We are excited to have another strong investor on board.
“With this finance from SoftBank and follow-on investment from Clermont, we will be able to continue scaling the group’s operations globally.”
Clermont Group chairman Richard F. Chandler commented: “The Clermont Group is delighted to continue its support of OakNorth which is proving to be an emerging champion in the financial services sector.
“It is building a strong and resilient business with an innovative business model.”
Munish Varma, partner at SoftBank Investment Advisers, said of the deal: “OakNorth is delivering a highly differentiated service to a key segment of the market that has historically been underserved by commercial banks.
“The company has a clear and ambitious vision to scale globally and we are excited to work with them to achieve this goal.”