OakNorth

What OakNorth does

OakNorth is a UK-headquartered digital bank founded in 2015 by Rishi Khosla and Joel Perlman that provides bespoke credit, savings, and transactional banking products to lower mid-market businesses across the United Kingdom and the United States. Its target borrowers are property developers, business operators, and growth-stage SMEs typically seeking facilities in the £0.5m to £20m+ range, a segment underserved by high-street banks and under-served by generalist alternative lenders. The bank complements this lending activity with personal and business deposit products and a growing Software-as-a-Service business that licenses its proprietary credit-decisioning and loan-origination platform to other banks, including Customers Bank in the US.

The core technology stack is a proprietary end-to-end credit platform built around sector-specialist underwriting models and a data-rich origination workflow. OakNorth has integrated OpenAI's generative and agentic AI capabilities into underwriting, credit-memo preparation, and customer support, with reported 90% employee adoption and AI systems that review approximately 40,000 customer interactions per month. Acquisitions of Fluidly (cashflow forecasting, 2021) and Monite (embedded B2B finance automation, 2026) extend the platform into adjacent workflow software for CFOs and finance teams, while partnerships such as the one with Customers Bank extend the platform as a white-label service. The bank has also built out specialty finance capabilities through a 50% stake in ASK Partners, Fintex Capital, and Trade Finance Partners.

OakNorth earns revenue primarily through net interest income on its £7.2 billion loan book, complemented by platform/SaaS licensing fees and fee income from acquired specialty finance businesses. New loan originations totalled £2.8 billion in 2025, up 33% year-on-year, with the United States contributing roughly 40% of new originations. The company reports £605.9 million in FY2025 gross revenue and £223 million of pre-tax profit, with a 1.4% return on assets placing it in the top 1% of commercial banks globally.

Name

OakNorth

Legal name

OakNorth Bank plc

Website

https://oaknorth.co.uk

Company type

Private

Founded year

2015

Operating status

Operating

Headcount range

501–1,000 employees

Short description

OakNorth is a UK digital bank founded in 2015 that provides bespoke credit, savings, and transactional banking to lower mid-market businesses in the UK and US, with a £7.2bn loan book, growing US franchise, and an externalised credit-decisioning SaaS platform.

Ownership category

akta.pro rank

Product category

Commercial Banking

NAICS

Credit Intermediation and Related Activities (522), Sales Financing (52222), Depository Credit Intermediation (5221)

SIC

Personal Credit Institutions (6141), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

Merchant Cash Advance (MCA) & Revenue-Based Financing (FSAKAGAD)

akta.pro secondary industries

Embedded Lending & Credit (POS, Working Capital, Credit Lines) (FSAGALAD), Debt & Capital Advisory (Debt Raising, Refinancing, Private Credit) (BPAHAOAD)

Keywords

• Commercial banking services
• Business lending solutions
• Mid-market finance
• Digital business banking
• Personal savings accounts

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices6 records

Markets served

GTM type

B2B

Offering type

Services

Revenue model

1. Interest income on business loan portfolio: Primary revenue driver from net interest margin on £7.2 billion total loan facilities (year-end 2025); 2025 gross revenue of £605.9 million with £223 million pre-tax profit driven by £2.8 billion of new loan originations (+33% YoY). Recurring income from amortising and revolving credit facilities across UK and US.
2. Net interest spread on personal and business savings deposits: Spread between interest paid on deposits (savings accounts - Easy Access, Notice, Fixed Term) and income earned on those funds deployed in lending activities. Variable product mix ranges from easy access at 2.35% AER to fixed-term business accounts up to 4.25% AER and fixed-term personal savings up to 4.55% AER.
3. US banking franchise revenue (Community Unity Bank): Following acquisition of Michigan-based Community Unity Bank, revenue contribution from US national bank charter operations (US accounted for ~40% of 2025 new loan originations); represents a geographic expansion of the lending franchise.
4. Finance automation / embedded business banking fees (planned): Following Monite acquisition (2026), OakNorth plans to monetize embedded accounts receivable, accounts payable and expense management capabilities for lower mid-market businesses as part of Finance Automation offering launching Q2 2026.
5. Specialty finance / club loan arrangement fees: Revenue from co-lending arrangements including co-investment with Fintex Capital (£20m already deployed together; £10m-£40m per borrower), structured loan-on-loan facilities to non-bank lenders, and participation in club loans alongside other lenders (NatWest, HSBC, ASK Partners, Sullivan Street Partners).

Pricing tiers

Go-to-market motion5 records

Distribution channels7 records

Marketing channels12 records

Core offering

OakNorth Bank plc is a UK-licensed digital bank that provides bespoke debt finance (from £1m up to tens of millions) to lower mid-market businesses across specialist sectors including senior living/care, real estate, hospitality, childcare/education, and fund finance, alongside digital business current accounts, business and personal savings products, business debit cards and payments. It is also a software company in that it licenses its proprietary data-driven lending platform to third-party banks such as US-based Customers Bank.

Product overview

OakNorth operates a single, integrated digital bank platform that combines (1) a suite of retail-style transactional products — the Business Current Account (with Multi-Company Accounts), Business Savings (Earn Vault, Notice Account and Fixed Term Deposit), OakNorth Visa Business Debit Cards, Business Payments (CHAPS/Bacs/Faster Payments/Bulk) and Accounting Integrations with Xero, Sage and NetSuite via Codat — with (2) a Personal Savings range (Easy Access Cash ISA, Fixed Rate Cash ISA, Fixed Term, Notice Tracker and Easy Access Tracker) and (3) a specialist business lending book spanning Senior Living/Care, Childcare & Education, Real Estate, Hospitality, Other Sectors and a dedicated Fund Finance practice offering NAV, Subscription, Hybrid and GP facilities. Acquisitions extend the platform: Fluidly adds cashflow forecasting, Community Unity Bank provides a US bank charter, ASK Partners (50% stake) deepens real estate specialism, and the Monite acquisition (announced March 2026) introduces a Finance Automation layer (accounts receivable, accounts payable, expense management) targeting lower mid-market businesses. The OakNorth Lending Platform itself is also licensed to other banks (e.g., Customers Bank, 2025), and an OpenAI partnership embeds GenAI and Agentic AI across the customer service, credit and back-office workflows.

Differentiator

Problem solved

Functional benefit

Brands

• Earn Vault: OakNorth's branded easy-access business savings product linked to the business current account.
• Acorn OakNorth

Products and services

• OakNorth Business Current Account Digital business current account that can be applied for in the app in under 10 minutes and opened in days; includes multi-company accounts, payment approvals, bulk payments to 250 recipients, FSCS protection and Direct Debit / Faster Payments / Bacs / CHAPS support. Targeted at UK Limited Companies, Private Unlimited companies, PLCs, LLPs and Overseas Companies with turnover above £1 million.
• Earn Vault (Business Easy Access Savings) Next-business-day access business savings account automatically available to business current account holders, paying a variable 2.35% AER with a £1 minimum deposit and interest paid monthly on balances above £100,000.
• Business Notice Account (30/95/125-day) Tiered business notice savings accounts paying up to 3.65% AER, with rates that track the Bank of England base rate minus a spread. Balances above £50,000 earn interest; maximum balance £15m per account.
• Business Fixed Term Deposit Fixed-rate business term deposit offering 6, 12, 24 or 36-month terms with rates up to 4.25% AER, minimum £50,000 and maximum £10m per customer.
• OakNorth Visa Business Debit Card Free team debit cards issued by Transact Payments Limited under Visa, with fee-free spending abroad in 40+ countries, biometric security, Google Pay support, real-time fraud monitoring and integration with Xero and Sage for automated expense reconciliation.
• Business Payments (CHAPS, Bacs, Faster Payments, Bulk) Unified in-app and web payments hub providing fee-free CHAPS same-day transfers, Faster Payments, Bacs direct debits/credits and bulk payments to up to 250 recipients with configurable approval workflows.
• Personal Easy Access Cash ISA Variable-rate cash ISA paying 2.75% AER with next-day access, no term and no withdrawal limits; subject to HMRC ISA allowance (max £20,000 for 2026/27 tax year). For UK residents aged 18+.
• Personal Fixed Rate Cash ISA Fixed-rate cash ISA available in 12, 24 or 36-month terms paying between 3.30% and 4.67% AER, with early-withdrawal interest penalties of 90/180/270 days' interest.
• Personal Fixed Term Savings Fixed-term personal savings offering up to 4.55% AER over 24 months with a £1 minimum deposit, aimed at lump-sum savers.
• Personal Notice and Easy Access Tracker Accounts Variable-rate tracker savings accounts including Easy Access Tracker paying 4.14% AER (with a 12-month 1.14% new-customer boost) and 95-day Notice Tracker paying 4.12% AER that follows the Bank of England base rate.
• Business Loans (Senior Living / Care) Bespoke debt finance for care homes, retirement villages and senior living operators, including umbrella facilities spanning acquisition, development and operation; ticket sizes from £1m to tens of millions.
• Business Loans (Childcare and Education) Tailored debt finance for nurseries, schools, specialist education and SEN providers, covering working capital, capital expenditure, acquisitions and refurbishment, typically from £1m up to tens of millions.
• Business Loans (Real Estate) Development and investment finance for property developers and investors, including umbrella, stretched and mezzanine structures supporting acquisition, refurbishment and repositioning of commercial and residential real estate.
• Business Loans (Hospitality) Bespoke debt finance for hotels, pubs, restaurants and leisure operators covering acquisitions, refurbishments, conversions and umbrella facilities for repeat development, from £1m upwards.
• OakNorth Fund Finance Specialist NAV, Subscription, Hybrid and GP/Management Company facilities for lower mid-market private capital funds (£50m-£1b AUM), with ticket sizes £3m-£75m, led by Managing Director Mohith Sondhi.
• Business Loans (Other Sectors / Speciality Finance) Flexible, bespoke debt finance for security, legal, manufacturing, construction and other growth-oriented sectors, supporting working capital, acquisitions, management buyouts, share repurchases and strategic investments.
• OakNorth Lending Platform Proprietary credit-decisioning and lending technology that OakNorth licenses to other banks; US-based Customers Bank adopted the platform in March 2025.

Quantifiable outcome

• £2.8 billion new loan originations in 2025 (+33% YoY)
• +8 more outcomes

Named customers41 records

Segments9 records

Ideal customer profiles1 record

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration6 records

AI capability10 records

Feature6 records

Partnerships

18 partnerships are on record, tiered flagship, major, moderate and minor.

• Fintex CapitalflagshipStrategic or Co-development Partner · 19 June 2026Co-origination and execution alliance for UK specialty finance and private credit under a co-investment model; structured loan-on-loan facilities for non-bank financial institutions plus direct lending for corporate borrowers in real estate credit, asset-backed finance and cashflow lending. £20 million already deployed jointly, targeting £10m-£40m per borrower deals.
• MoniteflagshipStrategic or Co-development Partner · 13 March 2026OakNorth acquired Monite (an all-in-one financial management platform) to integrate accounts receivable, accounts payable and expense management into its business banking platform. The first Finance Automation features will launch in Q2 2026; Monite co-founder and CEO Ivan Maryasin joins OakNorth as General Manager, Growth for Business Banking.
• OpenAIflagshipTechnology or Integration · 1 December 2025OakNorth is embedding OpenAI's GPT tools across its business to automate workflows and credit processes; reported 90% employee adoption and automation savings at the FT Global Banking Summit showcase (Dec 2025). The partnership supports credit memo generation, customer support automation and underwriting workflows as part of OakNorth's agentic AI roadmap.
• FinTech NorthmajorGTM or Marketing Partner · 19 November 2025OakNorth partnered with FinTech North (Manchester-based community organisation) to further strengthen support for businesses across the North of the UK; aligned with regional office presence in Manchester, Leeds and Newcastle.
• Codat (accounting integration provider)majorTechnology or Integration · 1 November 2025Codat (founded 2017, registered in England and Wales no. 10480375) is OakNorth's trusted third-party provider for accounting integrations with Xero, Sage and NetSuite; enables automatic daily transaction sync for business banking customers.
• ASK PartnersmajorStrategic or Co-development Partner · 22 June 2025OakNorth acquired a 50% stake in specialist lender ASK Partners, deepening its exposure to UK real estate bridging and development lending; deal sourced in part via joint £19.5m co-loan to Capilon Hotels Group.
• Customers Bank (US)flagshipOEM/ Whitelabel/ Licensing Partner · 27 March 2025US-based Customers Bank has adopted OakNorth's lending platform technology to support its commercial lending business; represents OakNorth's platform-as-a-service expansion into the US market.
• Sustainable VenturesmoderateGTM or Marketing Partner · 17 January 2025Partnership to support the growth of sustainable UK businesses; OakNorth provides business banking services to Sustainable Ventures' portfolio of climate tech innovators, with tailored solutions aligned to sustainability missions.
• Visa / Transact Payments LimitedmajorTechnology or IntegrationVisa is used under license; OakNorth Visa debit cards are issued by Transact Payments Limited, authorised and regulated by the Gibraltar Financial Services Commission. Cards support in-store, online, Google Pay usage in 40+ countries fee-free.
• Xero (partner rewards)moderateGTM or Marketing PartnerCo-marketed offer through OakNorth's Business Banking Partner Rewards: business banking customers can get 100% off Xero for six months. Xero is also a native accounting integration supported via Codat.
• GoCardlessmoderateGTM or Marketing PartnerPartner rewards programme: sign up, complete 6 payment actions and receive a £100 voucher, plus first 90 days free of GoCardless direct debit platform.
• HubSpotmoderateGTM or Marketing PartnerPartner rewards offer: OakNorth business banking customers receive 20% off HubSpot tools for attracting, converting and delighting customers.
• Ryan (tax services)moderateGTM or Marketing PartnerPartner rewards programme offering OakNorth business banking customers access to Ryan's R&D tax relief, grants and compliance support services.
• Money SquirrelminorGTM or Marketing PartnerAutomated cash flow set-aside tool for VAT, tax, savings and profit; integrated with OakNorth business savings accounts.
• Clockwise MarketingminorGTM or Marketing PartnerFree marketing support via tailored audit and strategy session for OakNorth business banking customers.
• Canopy (cloud brokerage)minorGTM or Marketing PartnerCloud procurement and management platform offer; OakNorth business banking customers can claim a free £1,000 cloud audit.
• LendlordminorGTM or Marketing PartnerProperty portfolio management platform integrated with OakNorth; supports property investor customers with performance tracking and finance access.
• SJC (bookkeeping)minorGTM or Marketing PartnerBookkeeping and financial management services; offer free Xero for one year when signing up via OakNorth.

Scale indicators13 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Allica Bank: UK challenger bank focused on lending to established SMEs and professional landlords, with sector-specialist relationship managers and bespoke facility structures. The closest UK analogue to OakNorth's lower mid-market lending model and the only other lender in the FCA/PRA Scale-Up Unit first cohort.
• Tide: UK business current account fintech serving SMEs and sole traders with multi-company accounts, integrated payments and accounting integrations. Comparable on the digital business banking side of OakNorth, though Tide does not run a balance-sheet lending book at OakNorth's scale.
• Funding Circle: UK-listed fintech that originated as a P2P/SME lending platform and has evolved into a small business loan provider. Comparable on the data-driven SME lending proposition, though OakNorth's ticket sizes (from £1m) and bespoke structures serve a higher tier of the mid-market.
• Shawbrook Bank: UK specialist challenger bank focused on SME and specialist property lending, acquired by Pollen Street Capital. Overlaps with OakNorth's real estate and SME lending franchise, though Shawbrook's product set is narrower and does not include a consumer-facing current account.
• Cynergy Bank: UK challenger bank focused on SME and professional services lending, with bespoke property and asset finance products. Comparable on specialist UK SME lending with relationship-led underwriting, though at smaller scale and without OakNorth's sector-vertical depth.

Broad incumbents

• Starling Bank: UK digital bank offering business current accounts, loans and consumer banking at much larger scale than OakNorth. Comparable on the digital-first UK banking experience and accounting integrations, but Starling serves a broader market including sole traders and larger corporates rather than OakNorth's lower mid-market focus.
• Zopa Bank: UK digital bank that pivoted from P2P lending to a full bank with personal savings, lending and credit cards. A fellow FCA/PRA Scale-Up Unit cohort member and comparable on the challenger-bank-to-full-licence trajectory, though Zopa's lending is unsecured consumer credit rather than commercial.
• ClearBank: UK clearing bank serving fintechs and other regulated institutions, also in the FCA/PRA Scale-Up Unit cohort. Comparable as a UK-licensed digital bank with infrastructure ambitions, but ClearBank operates primarily as B2B banking-as-a-service rather than competing for end-borrower relationships.
• Metro Bank: UK challenger bank with high street presence offering business and personal banking plus commercial lending. Comparable as a UK-licensed challenger bank with a business lending book, but materially larger and older with a fundamentally different branch-led distribution model.
• Atom Bank: UK digital-only challenger bank offering business and residential mortgages, savings and SME lending. Comparable as a UK digital bank with business lending capability, but Atom's loan book is dominated by residential mortgages rather than OakNorth's commercial mid-market mix.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key highlights7 records

Customer concentration

• Xx.com/oaknorthbank
• LinkedInlinkedin.com/company/oaknorth-bank
• Facebookfacebook.com/oaknorthbankuk

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries4 records

Funding overview

Funding rounds9 records

Investors11 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A3 records

Investments64 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about OakNorth