Rishi Khosla discusses the importance of being able to take a forward-look view in commercial lending with Bloomberg

Ensuring OakNorth Bank’s customers make the right decisions today, to avoid potential issues tomorrow


May 20, 2022

Cost of living crisis and inflation

  • At OakNorth Bank, they are firm believers that the strongest entrepreneurs always find opportunities in difficult times
  • So, despite ongoing challenges with inflation, rising interest rates, supply chains, etc. businesses will continue to seek capital to scale which means that commercial banks continue to have an important role to play

Types of businesses OakNorth Bank targets and the importance of growing entrepreneurship


  • OakNorth Bank was established to empower the ‘Missing Middle’ - businesses that are the most significant contributors to economic and employment growth, yet still struggle to access fast, flexible debt finance to grow;


  • The UK has created an impressive entrepreneurship ecosystem amongst specific industries, such as fintech and life sciences, however, the scale-up stage and growth mindset is typically still missing from UK businesses across other sectors and needs to replicate what we see in the US.


On working from home and default levels


  • Using the ON Credit Intelligence Suite, OakNorth Bank is able to take a bottoms-up, granular, forward-looking view to create models analyzing the impact of Covid-19, the rise of inflation and energy prices, as well as supply chain issues, on its loan book;


  • This process is ensuring OakNorth Bank’s customers make the right decision today, to avoid potential issues tomorrow, following headwinds such as the rise in default levels and insolvencies generally across the market.
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