A challenger you can bank on

A challenger you can bank on

OakNorth Bank has become the first challenger bank in the UK to make a profit less than one year after launching.

The Mayfair-headquartered digital-only bank, which also has an office in Manchester, prides itself on being ‘the bank for entrepreneurs, by entrepreneurs.’

It officially began deposit-taking and lending in September last year after completing mobilisation faster than any other bank in the UK (five months).

While the Brexit vote has caused some of the larger players to retrench from the SME-lending market, and some smaller banks to defer plans of launching into the space, OakNorth has seen it as an opportunity to increase its lending efforts.

Since 24 June, the bank has closed more than £100m in deals – including a £19m deal with healthy fast-food chain, LEON – growing its loan book to over £200m.

Rishi Khosla, CEO and co-founder of OakNorth, said: "This is a huge milestone for us and a significant achievement for a 12-month-old bank that was built fully from scratch.

"Achieving profitability is something that some of our larger competitors – both those that are completely new like us, and those that have been borne out of existing businesses – have yet to achieve. It is testament to our lending and deposit-taking capabilities, as well as the fantastic work that has been carried out by our team.

"With or without Brexit, we are strong believers in the UK entrepreneur. We have a unique opportunity to prove our commitment to our country’s entrepreneurs and growth businesses at a time when many other banks are retrenching."

Interested in finding out more about OakNorth? Hear from co-founders Rishi Khosla and Joel Perlman in the video below: