LHV Bank, the UK-based banking subsidiary of Estonia’s LHV Group, has expanded into the UK retail banking market with the launch of its new current account.
Having secured its UK banking licence in 2023, LHV Bank provides banking services to fintechs and lending services to small and medium-sized enterprises (SMEs) in the UK.
The bank, which operates on Tuum’s API-first core banking platform, also provides financial institutions with open banking, FX, and acquiring services, while planning to expand its offering to include direct debit payments.
LHV Bank says it is aiming to challenge the “market norm of low and 0% interest current accounts” by introducing a current account paying 3.25% AER on balances up to £1 million. The service incorporates real-time risk decisioning technology and supports Google Pay, with Apple Pay integration “coming soon”, according to the company.
The bank adds it “will use deposits for further UK small and medium sized business lending”.
The retail banking expansion makes LHV Bank the first retail bank to launch in the UK since Chase in 2021 and comes just two months after Madis Toomsalu announced his resignation as LHV’s chairman and CEO after eight years in the role.
Toomsalu, who will remain in his position until the fall of this year, also serves as chairman of LHV Bank and the Estonian group’s other subsidiaries, LHV Pank, LHV Kindlustus and LHV Varahaldus.
Source: https://www.fintechfutures.com/
