OakNorth, the challenger bank, has established itself as on the leading UK-based fintechs. In a startup sector where making a profit remains something of a rarity OakNorth has gone from strength to strength, increasing its loan book in its domestic lending business and successfully selling its intelligence software product to overseas banks, most recently signing deals with Capital One and Fifth Third Bank in the US.
Started by Rishi Khosla in 2013, the bank was profitable even before the Covid-19 pandemic. Last month, the London fintech published its 2020 Annual Report, revealing that despite the ongoing challenges of the ongoing pandemic, it lent £1.1B to the Missing Middle in 2020 and made £78M in pre-tax profit.
It has, however, also been able to take advantage of the Coronavirus Business Interruption Loan Scheme. The fintech unicorn has substantially increased the size of its loan book, offering these loans of up to £5 million, alongside its usual portfolio offering....