Fintech lender Oakam has arranged a senior debt line from the Royal Bank of Scotland.
Oakam says the facility will allow it to accelerate growth and strengthen its position as a leading challenger/disruptor in micro-lending in the UK.
The company has hit some major milestones recently, including lending £250 million; funding over 350,000 loans; getting a third of their customer base interacting through the recently released Oakam mobile app; and, the introduction of machine learning, leveraging proprietary data in re-lending decisions. The demand for its products grows by an average of 122% every year.
Backing Oakam is financial services private equity firm Cabot Square Capital LLP.
CEO Frederic Nze founded Oakam after seeing many who struggled to access banking services and credit in the UK, including recent arrivals to the country and those with “thin” credit files.
He said: “The new transaction ensures we help create a better future for more people in the UK and beyond. We are pleased to partner with RBS who have supported us as our bank since day one and who are again demonstrating their support for UK High Growth companies.”
Michael Murray and Milena Sheahan, Directors of Financial Institutions at RBS said: “RBS has provided transactional banking services to Oakam for a number of years. As an established banking partner to the business, the RBS team are delighted to further develop the relationship and support the business, assisting Oakam in providing much valued help to more beneficiaries of the credit they offer.”
James Clark, partner at Cabot Square Capital commented: “We are very pleased that RBS and Oakam have decided to enhance their partnership in continuing to build the UK’s best platform for unsecured credit for those who struggle to access credit. We are proud of what the business has achieved to date and look forward to supporting their growth plans.”