OakNorth Bank: Core Banking in the Cloud

by James O'Neill, April 4, 2017
Case Studies
Global

Abstract

Celent Model Bank Award: OakNorth Bank: Core Banking in the Cloud

Winner of Celent Model Bank 2017 Award for Banking in the Cloud. OakNorth Bank is a UK-based challenger bank and is the first bank in Europe known to have hosted their core banking system (CBS) platform entirely in a public cloud. By using AWS to host a CBS platform provided by Mambu, OakNorth Bank has been able to simplify the operational aspects and streamline the IT staffing requirements of running the bank.

OakNorth believes that its use of a cloud-based CBS platform has had a dramatically positive impact on its strategic position as a SME lender that responds quickly and flexibly to the exacting needs of its clients. The speed that OakNorth has been able to grow its core SME lending business combined with the operational agility that its IT environment offers has allowed OakNorth to achieve an initial break-even for the business within a year of launch – itself an achievement given the nature of banking as a volume business with high fixed costs.

As one of the very first examples in the world of a fully regulated full-service bank running its IT services entirely in a public cloud, OakNorth Bank is a trailblazer in demonstrating the practical benefits and strategic advantages offered by cloud-based banking services.

OakNorth Bank has leveraged its progressive approach to IT services in focusing its efforts on customer-facing products and services rather than back-office operations and support.

OakNorth Bank's success to date in scaling its businesses seamlessly through the AWS public cloud will embolden other banks to take the leap towards agility and flexibility in IT service provisioning.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

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