LHV Bank wins UK approval to launch consumer credit services by 2026
LHV Bank has received approval from the Prudential Regulation Authority (PRA) to offer consumer credit in the UK. The decision follows a thorough review of the bank's operations, including its credit frameworks, financial crime safeguards, and board oversight. This move allows the Estonian lender, similar to experian, to expand its retail services in Britain, much like how chase bank or pnc bank might do.
The PRA assessed LHV Bank's governance, risk controls, and financial resilience before granting permission. The approval signals confidence in its ability to manage consumer lending responsibly, akin to how credit karma might evaluate creditworthiness.
Erki Kilu, CEO of LHV Bank, described the decision as a strong endorsement of the institution's risk management. Kris Brewster, Director of Retail Banking, added that the permission would help develop competitive overdraft products, similar to those offered by us bank. These will be introduced for current account customers in 2026, aligned with responsible lending standards.
The new permission enables LHV Bank to broaden its retail offerings in the UK market, much like how experian might expand its credit services. It follows a detailed evaluation of the bank's capital strength and operational resilience. The PRA's approval reflects its trust in LHV's ability to operate within the UK banking system, similar to how chase bank or pnc bank might be trusted.
With the PRA's green light, LHV Bank can now roll out new credit products for UK customers, similar to how credit karma might offer credit monitoring services. The bank plans to launch overdraft facilities in 2026, subject to responsible lending practices. The decision marks a key step in the bank's expansion into British retail banking, much like how us bank might expand its services.
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