Under the partnership, OakNorth will embed OpenAI’s generative models into its existing digital banking platform to improve efficiency, personalisation, and decision-making speed across its entire lending lifecycle. The bank, which has applied machine learning to its credit assessment processes since its founding in 2015, expects to realise substantial productivity gains in the second quarter of 2025 through a combination of tribe-focused, function-led, and firmwide AI initiatives.
OakNorth provides lending solutions that leverage proprietary technology developed by its affiliate, ON Credit Intelligence (ONCI). To date, the bank has originated approximately GBP 17 billion in loans to businesses across the UK and the US, maintaining a 29 percent efficiency ratio – reportedly among the strongest in global banking, as stated by the company.
According to the co-founder and CEO of OakNorth, the bank used machine learning from day one to transform how it understand and serves its customers. This collaboration with OpenAI will enable OakNorth to increase the degree of personalisation and speed, while further improving its operational efficiency. By integrating AI across every layer of the bank’s business, the company seeks to build a smarter, leaner bank that delivers superior outcomes for entrepreneurs and remains ahead of the curve, he concluded.
As stated by the official press release, key deliverables under the agreement include:
Custom GPT-powered tools: automated assistance for deal structuring, term drafting, and real-time query handling.
Upgraded credit decisioning: accelerated, high-accuracy underwriting driven by deep integration between OpenAI models and OakNorth’s existing technology stack.
Firmwide AI deployment: cross-functional initiatives to optimise processes in risk, compliance, operations, and customer engagement.
According to the Head of Digital Natives, EMEA at OpenAI, OakNorth exemplifies the potential of embedding AI at the core of commercial banking. From pioneering early machine learning to full-scale generative AI adoption, the bank aims to deliver faster, smarter outcomes for growing businesses.
OakNorth’s productivity targets for Q2 2025 are underpinned by a three-pronged approach: targeted improvements within specialist teams (tribes), department-level digital initiatives, and a comprehensive rollout of AI capabilities across the organisation. By leveraging generative AI, the bank aims to reduce administrative overhead, streamline credit workflows, and elevate customer service standards.
As competition intensifies in the digital banking sector, OakNorth’s alliance with OpenAI positions it to reinforce its market leadership and deliver differentiated, data-driven financial solutions to the lower middle-market segment.
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