LHV Bank is fully capitalised, and customer deposits are protected under the Financial Services Compensation Scheme (FSCS) up to a limit of £85,000.
LHV Bank expands into personal savings. (Credit: Towfiqu barbhuiya on Unsplash)
LHV Bank, the UK’s newest licenced bank, today announces a new partnership with the 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,” says Erki Kilu, CEO of LHV Bank. “It’s 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.”
Erki added, “This collaboration with Raisin UK 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. “We believe that by aligning the interests of savers and business owners, we can create a win-win scenario that provides competitive returns while simultaneously boosting the UK SME sector,” elaborates Erki.
LHV Bank, which received a UK banking license in May 2023, 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, highlighting LHV Bank’s commitment to supporting UK businesses.
The 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, added: “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.”
Source: Company Press Release