OakNorth acquires US community bank to expand internationally

OakNorth agreed on a stock-for-stock transaction for Community Unity Bank, with the deal still being subject to regulatory approval. The announcement comes months after the Federal Reserve Board approved OakNorth’s application to establish a representative office in New York. At that time, the application was approved by the Director of the Division of Supervision and Regulation, with the concurrence of the General Counsel, under authority delegated by the Board. The New York Representatives Office was set to serve as a liaison between the company and US customers and users. Additionally, it aimed to promote and market OakNorth’s products and solutions, perform back-office duties, conduct market research, and facilitate lending to US customers and users.

OakNorth’s development strategy

According to OakNorth’s officials, the decision to acquire Community Unity Bank was based on shared values regarding the customer experience. Also, the company mentioned that the deal can also be attributed to the increased demand from US borrowers for its offering. Through this move, OakNorth intends to further expand its presence in the US market while also serving the needs, demands, and preferences of its users. Commenting on the news, representatives from Community Unity Bank mentioned that the acquisition allows the two financial institutions to deliver their services to more businesses across the region.

In addition to acquiring Community Unity Bank, OakNorth also centred its efforts on entering collaborations with industry participants. For example, April 2024 saw OakNorth joining forces with Marqeta to deliver banking capabilities for small and medium-sized enterprises (SMEs). The two organisations sought to provide commercial cards in the UK while also accelerating the development of SMEs and equipping them with optimised banking tools.