LHV Bank has joined the second cohort of the PRA and FCA’s Scale-up Unit, securing dedicated regulatory engagement as it expands its UK banking operations.
The initiative, launched in October 2025, helps growing financial institutions navigate regulatory processes and the practical challenges of scaling. LHV’s participation follows its full UK banking authorisation in 2023.
Growth Across Banking, Lending and Payments
LHV’s UK business combines three complementary activities:
Retail banking: App-based current accounts and savings products.
SME lending: Flexible financing for UK businesses.
Banking Services: Accounts, payments infrastructure and technology supporting fintechs and financial institutions across the UK and Europe.
For 2025, the bank reported £1.1 billion in customer deposits, £0.7 billion in lending and £5 million profit after tax. Its infrastructure business extends its role beyond direct customers, supporting other financial companies’ services.
Dedicated Contact, Same Regulatory Standards
Through the programme, LHV will have a dedicated regulatory contact familiar with its business model and growth plans. Engagement will cover product development, regulatory processes and challenges arising as operations expand.
Interim CEO Kris Brewster emphasized responsible growth, with governance, resilience and customer focus remaining central to the bank’s plans.
The FCA’s Scale-up Unit overview makes the boundaries clear: participation does not lower regulatory standards, guarantee application outcomes or constitute endorsement. A clearer route through the paperwork is useful; a regulatory free pass is not on the menu.
The Business Acquisition Angle
For teams weighing a fintech business acquisition against building a new operation, LHV’s expansion highlights a useful distinction: obtaining authorisation and scaling an authorised business are separate challenges.
That build-or-acquire question provides context for exploring fintech business development through N5Deal’s Fintech Builder. Whichever route a team considers, licence scope, operational capacity and regulatory engagement need to match the intended business model.