Tuum and LHV win IBSi Global FinTech Innovation Award for ‘Best Core Banking Implementation’

By Gloria Methri

Tuum, the next-generation core banking provider, and LHV Bank, a prominent BaaS provider, received the IBSi Global Finance Innovation Award for Best Core Banking Implementation. This accolade recognises their collaborative efforts in revamping LHV Bank’s core banking system in the UK, a pivotal move that supported its application for a UK banking license.

The project involved replacing the legacy core banking system of LHV Bank’s sister company with Tuum’s cloud-native, modular, and scalable platform. This modern infrastructure not only facilitated LHV Bank’s operational independence in the UK but also ensured compliance with stringent regulatory requirements.

“The transformation of LHV Bank’s core banking infrastructure was critical to their successful UK banking license approval,” said Nikhil Gokhale, Director – Research & Digital Properties at IBS Intelligence. “Tuum’s cloud-native, API-first platform enabled seamless integration, robust regulatory compliance, and unparalleled scalability, as demonstrated by LHV’s impressive 47.7 million payments processed in the first year. This project stands as a testament to forward-thinking banking innovation and operational excellence.”

The implementation of Tuum’s platform was pivotal, enabling LHV Bank to launch new financial products tailored to the dynamic market needs, including personal savings accounts and an SME lending portfolio. Notably, LHV Bank built a £69 million lending portfolio and grew deposits to £207 million by the end of 2023. Over 7% of all European real-time payments are now processed through this robust system, highlighting the scalability of the solution.

The smart migration strategy allowed for the seamless transfer of millions of customer accounts to the new system within just two months, ensuring continuity of service and demonstrating the bank’s operational readiness to regulators.

With 75% of LHV Bank’s IT budget now allocated to delivering customer value and innovation—far above the industry average—LHV Bank aims to expand its services, increase business volumes, and continue delivering exceptional value to its clients.

“Winning this award is not just a recognition of LHV’s technological strides but also a testament to our commitment as a leading BaaS provider,” stated Andres Kitter, Deputy CEO of LHV Bank. “Our collaboration with Tuum has revolutionised our banking infrastructure, significantly enhancing our capability to serve over 200 FinTech clients, including industry giants like Wise and Coinbase.”