Introducing LHV Bank
There’s a new contender in the UK savings arena. LHV Bank, recently granted its full banking license, has partnered with Raisin UK to introduce its savings products to consumers. The bank plans to provide a range of savings accounts, including a 12 Month Fixed Term, 95 Day Notice, and Easy Access options. These offerings aim to benefit consumers while supporting lending growth, particularly in the UK SME sector.
Addressing the Current Saving Landscape
LHV Bank CEO, Erki Kilu, expressed disappointment in the low returns that many savers are receiving despite the high interest-rate environment. The bank aims to combat this by introducing more choice and competition into the UK savings market. By collaborating with Raisin as its initial step, LHV Bank plans to evolve into a direct-to-consumer bank, with the goal of offering savings accounts directly through its own website by 2024.
Enhanced Protection for Customers
As a result of its new banking license, LHV Bank ensures the protection of customer deposits up to £85,000 through the Financial Services Compensation Scheme (FSCS). This assurance is crucial for building trust and confidence among savers.
Driving SME Lending
LHV Bank’s strategic acquisition of Bank North in October 2022 has accelerated its SME lending activities. Presently, the bank specializes in providing real estate and trading loans ranging from £500,000 to £5 million, emphasizing a strong regional focus. This expansion has positioned LHV Bank as a separate entity from its previous affiliation with Estonian financial services giant AS LHV Pank.