Deutsche Bank and SoftBank-backed OakNorth in partnership discussionsDeutsche Bank and SoftBank-backed OakNorth in partnership discussions

According to a source Deutsche Bank is in partnership talks with OakNorth about using the fin-tech company’s credit analysis and monitoring platform. The bank is piloting the technology, with the intention to formalize the partnership between the two organizations.

OakNorth’s software works by using data about a prospective borrower to help inform lending decisions. The data, like the financial performance of the borrower’s peers as well as sentiment about the borrower’s brand established by online reviews, can help inform banks’ lending decisions.

This partnership discussion comes at a time when the German bank is undergoing considerable restructuring and is seeking to return to its core business segment as a lender in its home market.

Both institutions have declined to give a comment confirming or denying their collaboration together. However, OakNorth, earlier this month, announced the first-ever enterprise-wide agreement. This announcement came after it signed a five-year deal with the Dutch lender, NIBC NV, granting the bank the permission to use its technology.

Speaking on its technology, OakNorth said that it informs banks’ lending decisions, especially on small loans. It does this by applying the level of data analytics that banks only use for medium-sized deals to small loans.

OakNorth, a British firm, is currently in talks with ten banks, according to its Chief Executive Rishi Khosla. By signing up lenders in Europe, Asia and the United States, Rishi Khosla says the company can monetize its credit analysis platform.

In a February funding round, OakNorth was able to raise $440 million from investors, including Japanese company, SoftBank Group. This values the company at $2.8 Billion.

Earlier in the month, Deutsche Bank announced that it would be embarking on restructuring over the next four years. The Bank aims to reduce its expenses and cut down several operational costs. The restructuring will involve a downsizing that cuts across several departments and will see the dismissal of 18,000 employees.

The Bank also intends to pull out of the global equities sales and trading business, and focus on retail banking and lending.

Deutsche Bank is a German banking institution with its headquarters in Frankfurt, Germany. Founded in 1870, Deutsche Bank is a universal bank that rests on three pillars—Private & Commercial Bank, Corporate & Investment Bank, and Asset Management.

Dr Boaz Schwartz heads Deutsche Bank’s activities in Israel. He joined the bank 1997 to establish the corporate finance practice in Israel. 

Since he joined, he has established Deutsche Bank as one of the leading foreign banks in Israel, with top market share in institutional sales, private banking, and corporate finance. He brought the bank to $150m in annual sales revenue, and has led transactions including Israel Chemicals’ acquisition of Astaris, and HP’s acquisition of Scitex Vision. He has managed a team of over 25 professionals across banking, trading, sales and research, and actively promotes all of Deutsche Bank’s business in Israel through C-level and government relationships.