OakNorth has made a deal to launch digital escrow accounts for borrowers with Shieldpay.
Shieldpay’s digital escrow facility will be used to hold OakNorth borrowers’ funds.
OakNorth says this is an “industryfirst offering”
The facility will help eliminate security risks such as fraud.
What does this mean?
This is the first time the two businesses have partnered. A key part of OakNorth’s SME customer base is property developers, and this facility will help them keep track of all payments and funds necessary for projects so cashflow is managed properly and contractors are paid on time.
We caught up with Tom Squire, Shieldpay’s Commercial Director, at SIBOS for some exclusive comment. He spoke about the difference between working with a FinTech like OakNorth as opposed to an incumbent bank. “They’re really good at embracing partnerships. They don’t have the legacy and baggage of a 300-year-old institution – when they want to work with a FinTech, they can.”
Squire added that working with OakNorth is “refreshing” thanks to how fast moving it is. The two organisations got the new service up and running within a few months, while the same process with a tier one bank might take as long as two years.
“OakNorth and Shieldpay are working with Clearbank, one of the newest clearing banks in the UK. Together, we all have a very forward-looking view of the world, realising that in order to gain market dominance, it’s all about partnerships that benefit both sides.
“OakNorth is established in the lending space; Shieldpay has that security and transparency that helps benefit their customers,” he added.