OakNorth, an AI software developer, has received a $30m investment from Japan-based bank Sumitomo Mitsui Banking Corporation (SMBC).
The deal also sees a partnership between the two firms. OakNorth will provide its Credit Intelligence software to SMBC with insights into its commercial loan book and borrowers in the US and Asia. It will also supply the bank with process automation and portfolio monitoring capabilities.
OakNorth enterprise software combines deep understanding of credit, dynamic datasets, auto-analysis capabilities, cloud-computing and machine learning to improve borrowing experiences for businesses.
Its credit and monitoring tool is informed by industry benchmarks, peer analysis and scenario analysis to improve decision making.
OakNorth co-founder Rishi Khosla said, ?SMBC continues to transform itself to adopt to changes in society and the economy. This partnership and investment is a clear demonstration of SMBC commitment to define the commercial banking model of the future and become the leading choice for businesses around the globe. Like us, SMBC wishes to create a better borrowing experience for businesses.p>
SMBC is collaborating with FinTechs to support its own innovation efforts around the world and boosting growth in the US and Asia.
The company medium-term management plan aims to increase profit through transformation of its business and pursuing new growth opportunities.
SMBC Group CFO and CSO Toru Nakashima said, ?Through this investment and the upcoming business alliance with OakNorth, SMBC strives to create new added value by bringing a high level of sophistication to its corporate lending platforms. We are further harnessing the power of AI through big data and machine learning across our strategic markets in South East Asia, such as Indonesia.p>
OakNorth banking division was recently rumoured to be exploring a $300m share sale.
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