May 16, 2020

FinTech profile: OakNorth Bank, Europe's most valuable fintech

OakNorth
Rishi Khosla
Cyrus Ardalan
Chairman
Amber Donovan-Stevens
2 min
This week FinTech Magazine takes a closer look at Europe most valuable fintech, with a US$2.8bn evaluation, OakNorth Bank.

Factbox

Founded: September...

This week FinTech Magazine takes a closer look at Europe most valuable fintech, with a US$2.8bn evaluation, OakNorth Bank.

Factbox

Founded: September 2015

Headquarters: London

Nof employees: 130

Founders: Rishi Khosla, Joel Perlman

Profit: £33.9mn (2018)

 

OakNorth Bank was founded in 2015 by Rishi Khosla and Joel Perlman.

 

[Founders, Rishi Khosla and Joel Perlman] [Image: Oaknorth]

The bank for entrepreneurs by entrepreneurs

Before the creation of OakNorth, Khosla and Perlman founded Copal Amba, a rapidly growing company that struggled to get financing as it didn't have property to act as security. As the company continued to grow, Khosla and Perlman became aware that this was an issue faced by millions of companies across the UK. In 2014, they sold Copal Amba to Moody's Corporation. From this demand, OakNorth was born. OakNorth is designed to provide business and property loans predominantly for small and medium sized companies. OakNorth has offices in London, Manchester, Gurgaon and Bangalore. Since its creation, it has loaned over £3bn to users, with over 55,000 customers with savings accounts. 

 

Key executives 

Cyrus Ardalan

Chairman

LinkedIn

Sunil Chandra

CEO

LinkedIn

Alok Prasad

Deputy CEO and COO

LinkedIn

Cristina Alba-Ochoa

CFO

LinkedIn

Amir Nooriala

CSO

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Did you know?

Earlier this year the company secured an $440mn  investment. This is the largest investment of any fintech in European history, according to Fobes.

 

For more information on all topics for FinTech, please take a look at the latest edition of FinTech magazine.

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Jun 23, 2021

CMA warns UK and Irish banks over bank transaction histories

Banking
CMA
Monzo
NatWest
2 min
The UK’s Competition and Markets Authority has issued warnings to several high-profile banks in the UK and Ireland over customer transaction histories

Specifically, the CMA named prominent challenger bank Monzo, the Bank of Ireland, NatWest Group, and Virgin Money as not providing customers with records of their bank transactions within the maximum outlined timescale (40 days after closing the account).

Such information is crucial not only for ensuring a smooth transition from one bank to another, but also to provide a foundation for credit applications in the future. 

According to the Retail Banking Market Investigation Order 2017, 95% of bank and building society customers should receive their bank transaction histories in at least 10 days.

Reputation: A bank’s greatest asset?

Of the 150,000 customers affected, Monzo was by far the main contributor - 143,000 (95.3%) - with the other three dividing the remaining 7,000.

The extent to which the magnitude of its mistake is attributable to being a digital-only bank is not clear, although it may give some customers pause for thought. With a superior customer experience being among the bank’s greatest assets, continued reputational damage is something that it cannot afford to sustain.

Although the CMA’s action in this instance has been to issue each bank a warning and order the immediate dispatch of all outstanding information, it has warned that future breaches will carry heavier consequences. Measures could include legally enforceable compliance audits on a yearly basis.

Helping customers get a better deal

Condemning the banks for negligence that could negatively impact customers’ desires to take out loans or mortgages, Adam Land, CMA Senior Director of Remedies Business and Financial Analysis, promised that his organisation would remain vigilant to similar behaviour moving forward.

“Banks must comply with all the rules – that includes providing a full transaction history promptly.

“We will be watching closely to make sure these leading names stick to their word and don’t let their customers down again. The Bank of Ireland, Monzo, Natwest Group, and Virgin Money should be in no doubt that the CMA stands ready to take further action if these failures are repeated.

Image source: gov.uk

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