Interview

Transforming digital banking and instant payments: the LHV story

Thursday 4 April 2024 07:31 CET | Editor: Irina Ionescu | Interview

At MPE Berlin 2024, we interviewed Mike Goodenough, Banking Services Consultant at LHV, to learn more about the tech-focused bank and how its solutions are shaping the future of digital banking and payments.


In the interview, Mike details on the activity of LHV and its history, pin-pointing the moments that defined the institution and made it a tech-oriented one, focused on innovation. 

LHV was founded 25 years ago but, until recently, its focus was on the traditional banking segment from its home country, Estonia. With around 400,000 customers, the bank’s majority of customers consist of merchants and small enterprises. Back in 2018, LHV opened its first branch in London and, after receiving its banking licence by the Prudential Regulation Authority (PRA) in 2023, it shifted its interest in fintechs and financial institutions.

With its double banking license, both in Estonia and in the UK, LHV deploys a strategic vision to expand its presence and services beyond Estonia and the broader European Union, tapping into one of the world's leading financial markets. The bank offers its fintech partners customised bespoke solutions such as Indirect Scheme access and collection possibilities, in addition to the kind of service and focus they are unlikely to receive from the bigger players. 

The Indirect Scheme access consists of indirect access to GBP and EUR payment schemes, a fully white-label experience invisible to end-customers, the ability for clients to own their account infrastructure, bank account numbers issuing with unique Sort Codes and BIC codes, and country-specific IBAN generation.

The advantages of Indirect Scheme Access count for cost-effectiveness, simplicity, dependence on sponsor banks, limited control, and regulatory requirements.

Currently, LHV services around 200 fintechs globally, including the cryptocurrency exchange platform Coinbase, TrueLayer, Currency Cloud, and Wise. LHV also counts for 7% of all the instant transfers across Europe, making payments not only accessible but also instant, supporting the development of the tech industry and driving financial inclusion. 

If you want to learn more about LHV’s capabilities, don’t miss out the full interview with Mike. Enjoy!

 


About Mike Goodenough

Mike Goodenough has an extensive experience, spanning over 20 years, in finance and payments. He has developed and executed strategic and commercial initiatives within senior leadership roles across Sales, Product, and partnership teams within international organisations. Recent roles have seen Mike lead the Global Retail and Marketplace vertical for Worldline, and he also served as the General Manager for the EMEA region for Ingenico, overseeing the strategy and commercial execution in the region. Prior to this, he headed the Global Partnerships and Alliances team, responsible for optimising global relationships with partners such as large acquiring banks, card schemes, and global alternative payment providers. In February 2024, Mike joined LHV Bank as a business consultant.


About LHV Bank Limited

LHV Bank, a fully licenced UK bank, specialises in providing banking services for global fintechs, SME lending solutions for UK businesses, and personal savings through a partnership with Raisin UK. The SME lending division offers commercial real estate investment loans and trading loans from GBP 0.5 million to GBP 5 milion to small and medium-sized businesses in the UK. As a leading banking services provider, LHV Bank delivers a wide range of services, including real-time multi-currency payments, accounts, acquiring, indirect scheme access, Open Banking, and FX solutions. Over 200 renowned fintech companies utilise LHV Bank to serve more than 10 million end customers and to access a pool of 500 million potential customers across the UK and Europe. LHV Bank holds a UK banking licence since May 2023.

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Keywords: banking, retail banking, digital banking, SEPA, SEPA Direct Debit, online payments, online platform, financial services, financial inclusion, financial data, banking license, instant payments, fintech
Categories: Banking & Fintech
Companies: LHV
Countries: Europe
This article is part of category

Banking & Fintech

LHV

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