LHV Makes Progress Founding a New Fintech Focused Bank in UK
Yesterday, AS LHV Group registered a new private limited company LHV UK Limited at Companies House. LHV UK will be a 100% subsidiary of the Group.
The Company will shortly start the process of applying for a banking (credit institution) licence in the United Kingdom. Subject to obtaining the necessary regulatory approvals, the Group’s aim is to form a standalone UK based fintech-focused bank, as announced in November 2020. The new bank will enable a clear distinction between the Group’s business activities in Estonia and the United Kingdom, where the former focuses on serving retail clients, and the London-based operation is a leading Payments-as-a-Service provider to the global fintech community. So far, LHV has operated in the United Kingdom via a branch entity.
LHV UK has appointed Madis Toomsalu (Chairman), Erki Kilu, and Andres Kitter to the board of directors of the Company. Erki Kilu will also serve as the Chief Executive Officer. Further updates on the board appointments will be made in due course.
- Madis Toomsalu is a Member of the Management Board of AS LHV Group, the Chairman of the Supervisory Boards of AS LHV Pank, AS LHV Varahaldus, and AS LHV Kindlustus, and is a Member of the Supervisory Board of AS LHV Finance. He has worked at LHV since 2007, operated as the credit manager of LHV Pank since 2012, and worked as the CEO of LHV Group since 2016.
- Erki Kilu will be the Chief Executive Officer of LHV UK. He served as the CEO of LHV Pank between 2008 and 2020 and acted as the Chairman, Management Board of Estonian Banking Association between 2018 and 2020. Erki Kilu has been employed at LHV since 2008.
- Andres Kitter has been a Member of the Management Board of LHV Pank since 2013 and the head of the UK branch since 2018.
Erki Kilu, CEO of LHV UK, said: “We’ve had incredible success in the UK since we set up shop here three years ago. Our client base has quadrupled and our expanding portfolio of services has made us a preferred banking partner for the global fintech community. The decision to found a new fintech focussed bank was taken to will ensure that we can continue offering the best possible service for our clients in the long term. I look forward to providing you with further updates on our progress in due course.”
In 2021, LHV UK will prepare the required documentation for licensing the bank’s activities and submit them to the supervisory authorities. Establishing the bank is subject to regulative approval.