The ON Story
Commercial Credit. Redefined.
Two entrepreneurs shared a vision
Entrepreneurs seek fundingBack in 2005, OakNorth’s founders Rishi Khosla and Joel Perlman, were looking for a working capital facility to support their growing business, a financial research outsourcing company.
Computer says "No"They approached numerous high-street banks and kept getting variations of the same response – “the computer says ‘No’. Despite being a profitable business with strong cash flow and retained clients, none of the commercial banks were willing to lend to them. It was too small a ticket to offset the costs the banks would incur in doing a fundamental assessment of their business and structuring a bespoke finance facility for them.
Commercial lenders missed outA few months later through one of their institutional client’s special situations desk, they managed to secure 100x the amount of debt for a dividend recap. So, an institutional division of a bank was able to support them, but the commercial lending part of the bank was not. Rishi and Joel ended up scaling that business to 3,000 employees and Moody’s Corporation (NYSE: MCO) acquired it in 2014.
The seeds for OakNorth were plantedThis experience stuck with them and is what inspired the launch of OakNorth in 2015 and the creation of the ON Credit Intelligence Suite. Rishi and Joel not only wanted to build a very robust and sustainable bank in the UK (OakNorth Bank), but also the software that would enable other banks around the world to more holistically and efficiently lend to the Missing Middle and help close the funding gap that they had experienced first hand.
The birth of Credit IntelligenceBuilt over five years by an engineering and credit science team of over 250 people, the ON Credit Intelligence Suite has propelled OakNorth Bank in the UK into the top 1% of commercial banks globally in terms of ROE, efficiency ratio, and Net Promoter Score. In addition to OakNorth’s own bank in the UK, the software is also being deployed by other leading banks around the world, including: Capital One, Fifth Third, PNC, ABN-AMRO, and SMBC.
OakNorth is ON a mission
We are redefining the way banks lend to the Missing Middle, giving today’s entrepreneurs access to the capital they need to grow, create jobs, build communities, and power our economy. The OakNorth Credit Intelligence Suite gives banks a 360-view of their borrowers, delivering extraordinary insight, and enabling faster, smarter credit decisions to open up new, profitable markets. We're transforming commercial lending so entrepreneurs can thrive.
Corporate Social ResponsibilityOakNorth believes that empowering growth businesses makes the world a more interesting, dynamic and diverse place to live. To continue reinforcing the positive impact growth businesses have on communities and economies globally, we donate 1% of our Group profits to supporting charitable causes and socially-minded enterprises. Read More
Let's get ON with it
Podcast OakNorth discusses automation trends in commercial lending For loans above $1M, automation can help save time at the back end to unlock time for the team at the front end
Wired Magazine Everything banks think they know about risk is wrong OakNorth co-founder Rishi Khosla writes for Wired Magazine on the need for banks to take a forward-looking view to assess commercial credit risk
CNBC Everything banks think they know about risk is wrong ON co-founder, Rishi Khosla, appeared on CNBC to discuss how the ON Credit Intelligence Suite supports the 'Missing Middle'