UK’s LHV Bank Unveils Upgraded SME Lending System

LHV Bank, the newest licensed bank in the UK, has made a significant move by implementing a new loan system for its SME Lending division. The bank has transitioned to a cloud-based banking system offered by its SaaS partner, Tuum. This shift aims to consolidate the bank’s architecture and improve resource allocation, while establishing a robust framework that is free from challenges associated with legacy systems.

Erki Kilu, the CEO of LHV Bank, emphasized that this integration with Tuum is a crucial step in their continuous efforts to provide a framework that enables their SME Lending business to quickly develop a wide range of new products. This flexibility allows the bank to swiftly adapt to changing market demands.

The lending division of LHV Bank offers commercial property and trading loans up to £5 million to SMEs in the UK. The bank’s regional focus, particularly in Manchester, plays a pivotal role in their lending strategy. By focusing on underserved business hubs, LHV Bank aims to fuel economic growth while ensuring that their directors fully understand the specific needs of local borrowers.

Tuum, an operational company in Europe and the Middle East, provides a cloud-native, modular platform that supports various business lines from a single system. Known for its high configurability and comprehensive API service offerings, Tuum’s system provides the flexibility that was a key consideration for LHV Bank in choosing them as a technical partner.

Myles Bertrand, the CEO of Tuum, expressed his satisfaction with the partnership with LHV Bank. He highlighted that LHV Bank’s decision to use the Tuum platform for SME Lending further strengthens their collaboration. It follows the successful migration of millions of customer accounts from LHV’s Banking Services business line to the Tuum platform earlier this summer. Tuum believes that clients operating multiple business lines from their system witness improved returns and reduced cost of ownership.

Reflecting their digital-first approach, LHV Bank is committed to leveraging technology to deliver the best client-facing offerings. In August, the bank introduced a new core banking system for its Banking Services business line, which serves 200 global fintechs. The updated system provides more efficient GBP payment system integrations, ensuring better reliability and scalability for their UK clients.

Last week, LHV Bank also entered the personal savings arena through a partnership with Raisin UK. The funds from those deposits will directly support the SME Lending business line. This move marks the bank’s initial foray into the personal savings sector, with plans to launch an advanced digital direct-to-consumer savings product in 2024.

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