By Oliver Smith on Wednesday 1 July 2020
The OakNorth of agriculture?
Upcoming lender Oxbury is edging closer to launch this autumn, with the news today that ClearBank is being used to provide the specialist bank’s banking platform.
Oxbury was granted a banking licence in February and is planning on offering bespoke lending products aimed at an agricultural audience.
Its first flagship product is called Oxbury Farm Credit, and will offer a revolving credit account to help farmers fund the annual investment in crops or livestock which might take months or even years to come to the end of a production cycle.
“Through ClearBank’s next generation banking solutions we can now access the UK payment schemes which is another step in us realising our goal of becoming the go-to bank for farmers, food producers and the rural economy,” said Oxbury CEO James Farrar.
According to Farrar 70 per cent of lending in the agricultural sector is still controlled by the big four banks, a market which Oxbury is aiming to capture 5 per cent of by 2025.
“As the only specialist agricultural bank in the UK, Oxbury is fulfilling a vital need, providing the agricultural community with a focussed and trusted banking provider,” said ClearBank CEO Charles McManus.
“We’re really pleased to have been selected by Oxbury and look forward to a long-term relationship, helping to support the needs of British farmers and the rural economy.”