- OakNorth has become the first bank in the UK to have its core system fully hosted on the cloud;
- The move paves the way for other banks, insurers and financial services companies in the UK to take advantage of cloud computing services.
OakNorth – the bank for entrepreneurs, by entrepreneurs – has today become the first cloud-based bank in the UK after months of working with Amazon Web Services (AWS) to drive the development forward with the UK regulator.
OakNorth, which provides loans of between £1m-£15m to entrepreneurs and fast-growth businesses, has been working closely AWS and the regulator for six months on policies related to access to data, business continuity, as well as data protection and security provided by cloud systems.
The bank’s migration to the cloud comes just eight months after it launched, as demand for its business loans and property development finance continues to grow. Since it began deposit taking and lending in September, it has lent over £120m to a number of businesses and developers across a variety of sectors.
OakNorth CEO and co-founder, Rishi Khosla, commented: “Having our core banking system based in the cloud is an important milestone for us and for the banking industry in the UK. This achievement will enable us to continue scaling the business safely and efficiently.
“The Financial Conduct Authority (FCA) proposed new guidance on cloud and other IT outsourcing last November in order to promote innovation and competition in the sector. This development is proof of the regulator’s willingness to do that and will open up the opportunity for other financial institutions to follow suit.”
“We are delighted to have worked with OakNorth to adopt the AWS cloud,” said Gavin Jackson, AWS Country Leader, Amazon Web Services UK Limited. “This demonstrates to customers that even highly regulated industries are entrusting their critical systems to AWS and are benefitting from the flexibility, agility and security of cloud computing to deliver innovative services to customers.”