UK’s newest licensed bank, LHV Bank, has announced a new partnership with online savings platform Raisin UK. This collaboration marks LHV Bank’s entry into the personal savings market ahead of its direct-to-consumer savings offering launch in 2024.
Erki Kilu, CEO of LHV Bank, stated that the aim of this partnership is to introduce more choice and competition into the UK savings market, offering rates that challenge the current low returns. LHV Bank is known for being the best place to keep and grow money and savings. As a digital-first bank, LHV Bank plans to use technology to provide superior digital savings experiences for its customers.
Notably, the deposits from savers will help support SME lending, providing necessary finance for entrepreneurs and driving economic growth. By aligning the interests of savers and business owners, LHV Bank hopes to create a win-win scenario that offers competitive returns and boosts the UK SME sector.
LHV Bank, fully capitalized and protected under the Financial Services Compensation Scheme, received a UK banking license in May 2023. The launch of its savings market follows its acquisition of Bank North’s SME lending business last year, emphasizing LHV Bank’s commitment to supporting UK businesses.
The bank’s SME lending division offers commercial real estate investment loans and trading loans between £0.5 and £5 million to UK SMEs. LHV Bank’s regional focus enables lending directors to understand and address the specific needs of local borrowers.
Raisin UK CEO, Steven Amos, highlighted their mission to empower consumers to make informed decisions for their financial future. The partnership with LHV Bank will provide better options for savers and raise awareness about the availability of alternative rates and providers.
Beyond SME lending and the newly launched savings offering, LHV Bank claims to be a leading provider of Banking Services in Europe. It serves over 200 global fintechs and offers a potential customer pool of 500 million across the UK and Europe. In the second quarter of 2023, LHV Bank reported a profit of £1.4 million.
Follow crowdfundingmagazine on Instagram: @crowdfundingmagazine_it