LHV Bank expands into personal savings market with Raisin UK
By Gloria Methri
LHV Bank, the UK’s newest licensed bank, has announced its partnership with online savings platform Raisin UK. This move marks LHV Bank’s first step into the personal savings market ahead of the planned launch of its direct-to-consumer savings offering in 2024.
“We want to introduce more choice and competition into the UK savings market,” said Erki Kilu, CEO of LHV Bank. “It is disappointing that despite the high interest-rate environment, many savers continue to receive low returns. Partnering with Raisin UK, we aim to offer rates that challenge this status quo. LHV has always been known as the best place to keep and grow your money and savings.”
He added, “This collaboration is merely our first step. As a digital-first bank, we intend to use technologies to deliver superior digital savings experience for our customers. The deposits from savers will directly support SME lending, driving economic growth by providing entrepreneurs with the necessary finance.”
LHV Bank is fully capitalised, and customer deposits are protected under the Financial Services Compensation Scheme (FSCS) up to a limit of £85,000. The bank’s savings market launch follows last year’s acquisition of Bank North’s SME lending business.
LHV Bank’s SME lending division offers commercial real estate investment loans and trading loans between £0.5 and £5 million to UK SMEs. A key aspect of LHV’s approach is its regional focus, which allows lending directors to better understand and address the specific needs of local borrowers.
Discussing the launch, Raisin UK CEO, Steven Amos said, “Our mission has always been to empower consumers to make informed decisions for their financial future. We do this by providing a range of options in rates and providers that are not typically available on the high street. The partnership with LHV Bank will further raise awareness there are better options available for savers.”
Operating in the UK since 2018 with offices in London, Leeds, and Manchester, in addition to SME lending and a newly launched savings offering, LHV Bank is also a provider of Banking Services in Europe. It reported a profit of £1.4 million for the second quarter of 2023.
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