LHV Bank gains UK approval for consumer credit services 

LHV Bank has obtained consumer credit authorisation from the UK Prudential Regulation Authority (PRA), concluding a six-month review process.  

This approval allows the bank to broaden its retail offerings, including plans for launching overdraft facilities for current account holders in 2026. 

LHV Bank CEO Erki Kilu said: “Receiving consumer credit permission from the PRA is a strong endorsement of the robustness of our risk management and governance frameworks. These permissions are only granted where regulators have confidence that a bank can manage credit safely, at scale and over the long term. 

“This outcome reflects substantial investment in our control environment, our people and our culture. It allows us to broaden our UK retail proposition while remaining firmly focused on prudent growth and responsible lending.” 

The PRA’s evaluation covered LHV Bank’s credit management systems, anti-financial crime measures, operational resilience, capital position, and governance.  

The regulator concluded that the bank meets the necessary standards to provide consumer credit “responsibly” within the UK framework. 

LHV Bank retail banking director Kris Brewster added: “Overdrafts are a core feature of a full-service current account, and this permission allows us to develop a competitive product designed around customer needs and transparency. Our focus will be on delivering overdrafts that are simple, fair and aligned with responsible lending principles when we launch in 2026.” 

Last month, LHV Bank reported that customer deposits have exceeded £1bn ($1.37bn) since its entry into the UK market in 2023.  

Deposits have come through both customers and partnerships with deposit aggregators. 

Among its existing products, LHV Bank offers a current account with an interest rate of 3.75% AER on balances up to £1m, and an easy access savings account paying 4% AER on amounts up to £100,000. 

LHV Bank is part of Estonia-based LHV Group, which provides banking, asset management, and insurance services in both the EU and the UK. 

The group employs more than 1,000 staff and manages assets exceeding £10bn.  

In June last year, LHV Bank joined forces with Salt Edge and Tuum to enhance its open banking capabilities, aligning with UK regulations. 

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