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38


THE BIG INTERVIEW Entrepreneurs in the cloud


IBS Journal talks Brexit, core banking software innovation and the challenges facing new entrants with OakNorth Bank co-founder and CEO, Rishi Khosla


also aim to complete deals (from first meeting to disbursement of cash) in weeks rather than months, appreciating that funding delays have a material impact on growth business’s opportunities. We also invite borrowers to present their company directly to credit committee allowing for greater transparency and feedback directly from the decision makers. This entrepreneurial approach is completely different to what businesses experience with larger banks where they’re one of hundreds of clients that their relationship manager deals with.


IBS Journal: What can you tell us about the technology underpinning the bank?


challenger banks jostling for prominence. What sets you apart from the rest?


I


Rishi Khosla: I think what sets us apart from other banks – both established and new – is the fact that we’re a bank founded by entrepreneurs, for entrepreneurs, which means our entire proposition is focused around how best we can service entrepreneurs who are building their companies. We know how frustrating it can be trying to secure growth capital because we experienced it first-hand when trying to secure a loan for our previous business, Copal Amba. We therefore set out to establish a bank that would be dramatically different and take entrepreneurs’ unique needs into consideration.


Instead of defaulting to property as collateral and a computer- says-no approach like most banks, we focus on properly understanding and underwriting the businesses we lend to. Our lending directors take the time to understand the business and will consider multiple collateral types such as stock, debtors, plant and machinery, intellectual property, etc. We


www.ibsintelligence.com © IBS Intelligence 2016 BS Journal: OakNorth is one of many UK


RK: Our core banking software is provided by German company Mambu. In May, we became the first bank in the UK to have its core system fully hosted on the cloud. We chose Amazon Web Services as our platform partner and worked with them for several months to drive the development forward with the UK regulator. We helped design policies related to access to data, business continuity, as well as data protection and security provided by cloud systems. Having our core banking system based in the cloud enables us to scale up more quickly and safely with fewer resources, and enables us to launch new products and services more efficiently.


IBS Journal: You were the first bank in the UK to have its core system fully hosted in the cloud. What has been the experience thus far and do you see other banks following your lead, both challengers and incumbents?


RK: It’s still very early days but so far the experience has been very positive from a cost, flexibility, and scalability perspective. The fact that the policy is now written and the regulator is onboard means that other banks are very likely to follow suit. I don’t think larger players will be able to take advantage of this development to the same extent as their legacy IT prohibits them from doing so, but certainly some of the new digital players should be able to.


IBS Journal: What is OakNorth’s position on Brexit and how it might affect small specialist lenders?


RK: The outcome of the vote came as a shock to me. For the record, I voted to remain believing that for business owners and entrepreneurs in the UK, access to the EU’s significant markets


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