back Back

LHV UK to acquire Bank North’s SME lending business

By Leandra Monteiro

October 13, 2022

  • Acquisition
  • Bank North
  • Credit Management
Share

LHV UK, lendingLHV UK announces that it has agreed on commercial terms to acquire Bank North’s Small Medium Enterprise lending business. This transaction enables the Company to accelerate its expansion plans to service SMEs.

LHV UK has made an offer to acquire the entire SME lending business of Manchester-based regional lender Bank North. LHV UK will acquire Bank North’s entire £17.9m loan book and technology systems for managing the loans. The transaction will also see 20 employees transfer to LHV UK and cooperation agreements with commercial brokers.

The SME business will remain regional and driven by cooperation with local commercial brokers. Manchester will become LHV UK’s third hub in the UK. The Company has placed high importance on the regional development of the UK’s FinTech sector; in addition to its London headquarters, LHV UK opened its second hub in Leeds for its development and engineering teams earlier this year.

Erki Kilu, CEO of LHV UK, said, “The demand for SME lending is well proven, and this acquisition enables LHV UK to accelerate our plans to expand to servicing SME companies. By utilising the experience of LHV UK’s Executive Management in the SME lending space and our access to funding and capital, which is essential when running a loan business, we can quickly build on the solid foundation laid by Bank North’s team.

By combining the skills and experience of the two companies, we increase LHV UK’s technical capacity, create value and will be in a position to better deliver to the UK SME market. The SME lending business will remain regional through our offices in London and Manchester, where it’ll continue to benefit from local expertise and established relationships with the brokers, who’ve already delivered a proven substantial loan pipeline to Bank North.”

Ron Emerson CBE, Chair of Bank North, said, “On behalf of the Board, I would like to express our appreciation for the support that we have received from the LHV Group. As an investor, they have conducted themselves impeccably and have demonstrated real empathy for SMEs and a genuine understanding of the Bank North lending proposition and vision. Following a competitive and independently managed process, we are pleased that we were able to agree on this transaction with LHV UK, which not only preserves 20 jobs and the Bank North legacy but also ensures that SMEs will get much-needed finance from a progressive and well-funded provider.”

Previous Article

October 13, 2022

ELGA CU goes live on Scienaptic’s AI-powered credit decisioning platform

Read More
Next Article

October 13, 2022

Vested Finance becomes a FINRA registered US broker

Read More









IBSi Daily News Analysis

Middle East, Egypt

January 16, 2024

Acquisition

Egypt among top remittance recipient countries in 2023: World Bank

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

Finastra taps Databricks to boost AI capabilities & enhance services

Read More

Today

10x Banking secures fresh funding to fuel global expansion

Read More

Today

FinBox & Capital Now team to enhance digital onboarding and risk assessment

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q4 2023
Know More
Wealth Management & Private Banking Systems Report Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023