UK SME-focused OakNorth Bank has entered a new partnership with high value transaction specialists Shieldpay, to launch escrow accounts for borrowers.
Claimed to be an industry first, the two have developed a solution that places OakNorth borrowers’ funds into Shieldpay’s digital escrow facility and only release funds when all parties are in agreement.
Amir Nooriala, chief strategy officer, OakNorth Bank, commented: “This latest partnership is another example of two leading fintechs coming together to provide a better experience for the customer.
“This will be particularly useful for our property developer clients where there are often numerous parties involved in a project – architects, project managers, contractors, sub-contractors, designers, etc – and it can be challenging keeping track of all funds and ensuring that all parties are being paid the right amount at the right time.”
The partnership aims to ensure that the bank’s borrowers are able to monitor capital within its business and guarantee all funds are allocated correctly.
OakNorth Bank will also be able to utilise Shieldpay’s platform features such as detailed analytics and insights into borrowers’ cash flows, creating an additional layer of risk management and control.
Shieldpay’s pending payments process verifies the identity of both sides of any transaction, holds funds securely and only releases them once both parties confirm they are happy.
“The Shieldpay solution has found a perfect home inside of the OakNorth ecosystem,” noted Peter Janes, CEO and founder, Shieldpay.
“The OakNorth offering is truly innovative and coupled with the payment security and risk management that Shieldpay offers, this creates a product that is unrivalled in the market.
“The Shieldpay team is very excited about the partnership and look forward to growing alongside OakNorth.”
Shieldpay recently added industry veterans Nick Ogden and Jim Cowles to its board of directors.
