UK banks abandon SMEs to the challengers

OakNorth shows that SME lending need not be unduly risky and can be highly profitable, and other new banks are following its example.

At the end of April, OakNorth, the new, profitable and fast-growing digital bank that makes loans of between £500,000 and £40 million to fast-growth UK businesses and established property developers, announced four new hires of experienced bankers to oversee expansion in Manchester, Birmingham and Bristol.

These new arrivals from Europa Capital Debt investment, RBS, Investec and HSBC join a bank that has lent £3 billion since launch in late 2015, more than doubling loan facilities in the last 12 months.

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