LHV Bank , a new UK-based licensed bank, has finalised the business transfer from its Estonian affiliate, AS LHV Pank’s UK branch, to its newly licensed entity. This transition, affecting LHV Bank’s banking services clients in the UK, comes after LHV Bank receiving its banking licence and its subsequent approval from the UK High Court to transfer the business. The GBP payment services associated with the banking services business have been shifted from the previous branch to the new bank.

This transition also included the transfer of associated GBP payment scheme memberships and related contracts. Additionally, LHV Bank has implemented a new cloud-based core banking system and migrated the customer data from the Estonian core banking system to the new system in the UK. LHV Bank expects this infrastructure to simplify GBP payment systems integration for clients in the UK, as well as improve reliability, and allow for better scalability of operations. As a result of this transition, the LHV Bank will handle all the GBP payments for its banking services customers, while LHV Pank will continue processing EUR payments without changes. More about LHV Bank LHV Bank is a member of various UK and EU payment schemes and connects more than 200 global banking services clients with the banking world.

Through LHV Bank’s BaaS offering, these clients serve over ten million customers, accessing a potential clientele of 500 million across the UK and Europe. LHV Bank is a licensed bank owned by LHV Group and is under the supervision of the UK financial regulators. Alongside its new banking system, the bank is preparing to implement a new loan system and plans to soon begin attracting deposits. Moreover, the bank specialises in providing banking services for global fintechs and SME lending solutions for businesses in the UK.

The SME lending division offers commercial real estate investment loans and trading loans ranging from GBP 500.000 to GBP 5 million. The bank provides a wide spectrum of services, such as real-time multi-currency payments, accounts, acquiring, indirect scheme access, Open Banking, and FX solutions. LHV Bank gained its UK banking licence in May 2023. This would allow LHV Bank to accept customer deposits and transition from operating under the temporary permissions regime as a branch of Estonian retail bank AS LHV Pank (LHV Pank) to being a fully authorised and regulated bank by both the PRA and the Financial Conduct Authority (FCA).

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