- OakNorth will be using ClearBank’s platform, the latter’s management announced this news on their website
- In the beginning of February last year, OakNorth raised a whopping $440 million for its expansion plans
- An OakNorth executive says that ClearBank’s platform is ‘best in class’
Neo bank OakNorth will utilise the platform built by ClearBank to provide real-time payments services and agency banking. Reports say that the challenger bank will start off with ClearBank’s Faster Payments infrastructure, making it possible for its customers to transfer money internationally and have those funds available to the recipient within seconds. However, OakNorth has not released any details regarding overseas transfer rates as its executives concentrated on the seamless experience that the brand aims to provide.
Amir Nooriala, COO of OakNorth, says: “ClearBank’s API and virtual account support capabilities are best-in-class and in them, we’ve found a long-term, strategic partner who will enable us to provide an even faster and more seamless experience for our clients”. The neo bank provides debt finance services to businesses, property developers, and investors, reports say. It can finance amounts from £500,000 up to £45 million.
In a statement by Charles McManus, the Chief Executive Officer of ClearBank, the executive said: “We are delighted to announce our partnership with OakNorth. Since its launch just a few years ago, it has established itself as one of the fastest-growing and most successful fintechs in Europe and as a key enabler and supporter of businesses. We look forward to working with OakNorth as it continues to build its offering and customer base across the UK.”
OakNorth has already lent more than £2.6 billion since its launch. It currently has 36,000 savers under its belt. Observers note that OakNorth is doing well in getting new customers each day and has put the money it has raised to good use.
Back in February 2018, the challenger bank closed its funding round at $440 million with Clermont Group and SoftBank Vision Fund. It was reported at the time that OakNorth wanted to focus its resources on its international expansion.
Its partner ClearBank is reportedly the “first new clearing bank in 250 years”, according to a Fintech Futures article that came out Monday. The bank was recently awarded some funds from the Royal Bank of Scotland’s innovation fund. It has continued to grow since its inception and aims, according to its website, to ensure transparency in the British clearing market.
This is good news for UK fintech, but the challenger bank space is already getting crowded despite the fact that some have applied for licenses abroad due to Brexit anxiety. Both ClearBank and OakNorth are a part of the challenger sector.
There is no news as to how much the fees are when using OakNorth’s new service, but observers are confident that they will be affordable and will make payments a lot easier for customers.
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