LHV Bank teams up with Raisin UK move into the personal savings market
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UK-based LHV Bank has come up with a plan to enter the local personal savings market. The plan revolves around a partnership with an online savings platform called Raisin UK. The move will allow the bank to expand its services, and it comes right after the LHV Bank’s plan to launch a direct-to-customer savings offering.
Entering the personal savings market
According to the bank’s timeline, the new service should be set to go live in 2024. The bank also has a plan to introduce its own personal flavor to the service in the form of rates that challenge the market. On top of that, it will also use its technologies to deliver improved experience to its customers.
The newly licensed bank’s main business up to this point has been providing payment services to fintechs. So far, this has been quite a successful plan, and the bank has onboarded over 200 fintech clients. Some of the biggest names that LHV Bank collaborates with include Coinbase, Wise, and Monese.
In 2022, the bank also entered the SME lending sector by acquiring Bank North’s business. After that, in May 2023, the company managed to secure its own banking license. Now, only a few months later, it is making a move that will secure its entry into the consumer arena by focusing on the partnership with Raisin UK — a company that operates as a savings and investment marketplace.
LHV Bank’s CEO, Erki Kilu, noted that the partnership with Raisin UK will allow his newly licensed bank to offer unique rates that will challenge the status quo in this sector. “LHV has always been known as the best place where to keep and grow your money and savings,” he added.
The bank continues to expand its services
The bank’s plan is to use the deposits from savers to support small and medium-sized enterprise lending, which will drive economic growth by offering financial services to businesses and entrepreneurs. Of course, since the bank got its banking license earlier this year, it is now fully capitalized. In other words, the Financial Services Compensation Scheme will protect all client deposits up to the limit of 85,000 GBP.
As for the SME businesses that will be able to take out loans, these loans will go anywhere between 0.5 GBP and 5 million GBP.
It is worth noting that the bank entered multiple partnerships over the last several months, covering multiple geographies worldwide. Earlier this very month, it finalized the business transfer from its affiliate based in Estonia, known as the AS LHV Pank. The move shifted the GBP payment services that were associated with the previous branch to the new bank, and the same was true for other related contracts.
