OakNorth onboards US lender, Customers Bancorp, looking to monitor loan portfolio amid coronavirus crisis

By Oliver Smith on Wednesday 8 April 2020

Alternative Lending

Customers is looking to monitor its $11.5bn lending portfolio during this time of economic uncertainty.

OakNorth onboards US lender, Customers Bancorp, looking to monitor loan portfolio amid coronavirus crisis
Image source: Rishi Khosla, OakNorth CEO and co-founder.

Customers Bancorp has become the first publicly-announced US bank to sign up to use OakNorth’s credit analysis and monitoring platform.

The move comes as Customers is looking to identify the businesses and sectors in its $11.5bn lending portfolio that will be hardest hit by the coronavirus outbreak.

OakNorth has now licenced its technology to 17 banks globally, including NIBC Bank in the Netherlands, and is also used to power OakNorth’s lending arm.

“Through enriched underwriting and leveraging credit science, we are providing partners such as Customers Bank with the insight and foresight to address the needs of the Missing Middle,” said OakNorth CEO and co-founder Rishi Khosla.

“Of course, we are currently in the midst of an unprecedented crisis, so in the short term, we will be working with Customers Bank to help it manage the portfolio risk associated with this.”

During the current crisis, Customers will use the OakNorth Platform to spot “early warning indicators in case of deterioration in credit quality” allowing it to approach borrowers before they start falling behind.

Going forward Customers CEO and chairman Jay Sidhu said the bank will embrace OakNorth’s technology to “enhance our portfolio management capabilities with new market insights, further strengthening our customer engagement and credit quality while helping to speed up our underwriting and loan processes.”

Last month OakNorth celebrated a near-doubling of profits in 2019, with its platform positioned as the growing edge of the fintech’s business.

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