SMBC Takes Stake in OakNorth
The Japanese commercial banking giant will deploy OakNorth's credit intelligence software to further enhance its commercial lending proposition in the U.S. and Asia and optimize the asset review processes.
Sumitomo Mitsui Banking Corporation (SMBC) has invested $30 million in the U.K.-based credit platform provider through a secondary purchase of shares, it announced in a statement on Thursday.
OakNorth employs AI-driven credit analysis and monitoring to directly lend off its own balance sheet via OakNorth Bank in the U.K., and licenses the platform as a software-as-a-service solution to other banks.
Medium-Term Plan
The investment aligns with SMBC's medium-term management plan, which aims to increase profits by optimizing and remodeling its businesses, while pursuing new growth opportunities.
«SMBC will deploy the solution across its corporate lending platform in overseas and strategic markets such as Southeast Asia and Indonesia,» Toru Nakashima, SMBC Group CFO and CSO, said in the statement.
