Manchester base for new SME bank

A NEW British bank to serve thousands of growth-hungry SMEs will open its doors in Manchester in the summer.

OakNorth – which will also open an office in London – will offer short-term working capital loans and term loans on a flexible basis to SMEs, as well as competitive savings products to retail customers.

The bank will use advanced financial technology that marks a sea change in a traditional industry, and will enable faster service and a superior customer experience to many of its peers.

It will accept multiple collateral types not just property, unlike much of the secured lending offered to SMEs by major banks.
 
The bank, which is subject to regulatory approval, says it is for entrepreneurs, built by entrepreneurs, founded and backed by chief executive  Rishi Khosla and Joel Perlman.

The duo are currently transitioning out of Copal Amba which they previously founded and developed into a 2,500 employee global brand, acquired by Moody’s Corporation in 2014.
 
OakNorth’s says its fintech platform will enable short-term working capital loans to be accessed within short time frames, through a customer friendly process and is designed to provide a distinctive customer experience. The model is designed so customers don’t need to sacrifice speed of application and likelihood of success to access a good rate.
 
Term loans will be offered through relationship managers at regional offices, initially in London and Manchester.
 
“Growth companies provide half of all employment growth in Britain, but have been neglected by banks in favour of big business,” said Khosla
 
“When smaller growth companies have tried to access loans, they have often been refused, required security against property or been served at a glacial pace. That’s why we’re launching OakNorth – to use financial technology and a new approach to lending that gives smaller growth companies a banking service one would normally associate with larger corporate clients.”