LHV Bank completes business transfer from Estonian entity and bolsters BaaS offering

Three months after winning its UK banking licence, LHV Bank has finalised the business transfer from its Estonian affiliate AS LHV Pank to the new entity.

All GBP payments associated with the company’s banking services have now moved to the new bank from the previous branch, along with memberships and related contracts.

LHV Bank is also strengthening its Banking-as-a-Service (BaaS) business with a new cloud-based core banking system and migrated customer data to a new LHV Bank system in the UK.

“The preparation for this business transfer has spanned over a year and a half. The whole project has been sizable, both legally and technically,” LHV Bank CEO Erki Kilu said.

“During this period, we have built a completely new banking software, culminating in what is arguably the most state-of-the-art banking system, giving us a technological advantage for the foreseeable future.”

All of the bank’s clients and their data have now transitioned to the new system.

LHV Bank itself has more than 200 global banking services customers, and through its BaaS these clients serve more than 10 million customers across the UK and Europe.

While LHV Bank takes on all GBP payments services, the Etonian entity LHV Pank will continue to process EUR payments.

The bank is also preparing to introduce a new loan system and has plans to start taking deposits soon.

“When building this system, we chose to collaborate more extensively with external value-adding service providers, transitioning all systems to cloud solutions and enhancing in-house agile software processes,” Kilu added.

The CEO said the bank partnered with Tuum for its core banking system, Salv for payment monitoring and Salesforce for customer management.