LHV Bank, the UK’s newest licensed bank, has partnered with the European savings and investment marketplace Raisin UK; marking LHV Bank’s first step into the personal savings market ahead of the launch of its direct-to-consumer savings offering, planned for 2024.
By partnering with Raisin UK, LHV Bank hopes to take advantage of rising interest rates by offering higher rates for its UK savings accounts.
Erki Kilu, CEO of LHV Bank, explained the significance of the collaboration: “We want to introduce more choice and competition into the UK savings market. 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 where to keep and grow your money and savings.”
Deposits from savers will also directly support SME lending – with an aim to drive 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,” Kilu explained.
The bank’s SME lending division currently offers commercial real estate investment loans and trading loans between £0.5million and £5million to UK SMEs.
“Better options available for savers”
Steven Amos, CEO of Raisin UK, also discussed the partnership: “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.”
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, further highlighting LHV Bank’s commitment to supporting UK businesses.
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.
Through LHV Bank’s offering, these fintechs now serve over 10 million end customers and gain access to a potential customer pool of 500 million across the UK and Europe. LHV Bank also reported a profit of £1.4million for the second quarter of 2023.
Image and article originally from thefintechtimes.com. Read the original article here.