Expected to be granted in 6-12 months time.
Erki Kilu, the CEO of LHV UK, said it had taken the organisation “exactly a year” to prepare all the materials needed to submit its application.
“We have been in constant communication with the regulators and promptly addressed any recommendations and feedback.”
While securing a UK banking licence has become easier in recent years, the process still takes between 6-12 months depending on how complete the Prudential Regulatory Authority and Financial Conduct Authority judge the application to be.
Kilu added that the UK entity would invest £8.5m this year in people, technology and risk control systems.
“We will also open our second UK office in Leeds, where we plan to hire IT specialists and engineers.”
The reasoning for this decision was to allow LHV UK to better focus on its core financial infrastructure business of offering accounts, FX and card acquiring—separating it from LHV’s retail bank in Estonia.
LHV UK today counts over 200 customers including Wise, Monese, Coinbase and Currencycloud, it also offers modular financial services from third-parties including a banking platform with Tuum and payments processing with Form3.