LHV UK Parent Raises €35 Million as It Seeks UK Banking License

LHV Group, which operates the banking service provider LHV UK, has secured €35 million with a recently closed rights issue, which received an overwhelming response and was oversubscribed.

Announced on Tuesday, the funding came when LHV UK, which primarily offers services to fintechs and crypto startups, is in the process of applying for a banking license in the United Kingdom.

“Confidence in LHV's plans and activities is strong as our offering was oversubscribed 1.75 times,” said the CEO of LHV Group, Madis Toomsalu.

“It is gratifying that the Fundraise turned out to be attractive to existing and new investors, despite the subscription period taking place during a tense geopolitical environment and against the background of declining stock markets.”

The group will use a portion of the proceeds of the funding to capitalize on the new UK bank, which according to the group, is a key step in the process of obtaining the banking license.

Restructuring Businesses

LHV Group, which is listed on the Nasdaq Baltic is an Estonian financial group and capital provider. In addition, the group is pushing to separate the business operations of its retail bank, LHV Bank, from those of the London headquartered fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term focussed LHV UK.

A banking license in the UK will simplify LHV UK’s compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with regulatory and supervisory requirements.

Erki Kilu, the CEO of LHV UK, said: “The funds raised are a key step in the UK banking license application process. In tandem with this ongoing process, we continue to scale up LHV UK’s operations. We’re currently hiring vigorously for our open positions across London, Leeds and Tallinn and continue to develop new client-facing products.”

Earlier in April, the UK company added the Chief Financial Officer of Boku, Keith Butcher, to the Board as the second Independent Non-Executive Director.