Feature Spotlight: LHV Bank adopts Tuum’s cloud-based banking platform for SME lending in the UK

LHV Financial institution companions with Tuum to launch a brand new mortgage system. | Picture credit score: LHV Financial institution

LHV Financial institution, which acquired a UK banking licence in Could, introduced on Thursday that it’s partnering with Estonian SaaS supplier Tuum to roll out a brand new mortgage system for its SME Lending enterprise. Erki Kilu, CEO of LHV Financial institution, says, 

“This integration with Tuum is a key step in our steady effort to offer a framework that allows our SME Lending enterprise to develop a variety of recent merchandise shortly, permitting us to swiftly adapt to altering market calls for.”

In line with LHV Financial institution, the transfer improves useful resource allocation and simplifies lending structure. It’s going to permit the financial institution to roll out new merchandise shortly to adapt to altering market calls for. Moreover, it creates a resilient, future-proof framework that can assist the financial institution keep away from legacy system challenges.

LHV Financial institution’s lending enterprise gives industrial property and buying and selling loans of as much as £5M (€5.8M) to small and medium enterprises within the UK. Predominantly working in Manchester, it goals to gasoline financial development in underdeveloped enterprise hubs.

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LHV Financial institution launches new core banking system

In August, LHV Financial institution launched an up to date core banking system for its Financial institution Companies division, which serves 200 fintechs worldwide. The brand new system ensures extra environment friendly GBP funds, enhancing reliability and scalability for the financial institution’s shopper base within the UK.

“When constructing this technique, we selected to collaborate extra extensively with exterior value-adding service suppliers, transitioning all techniques to cloud options and enhancing in-house agile software program processes,” says Kilu.

The present change includes shifting the financial institution’s clients to Tuum’s platform. Tuum CEO Myles Bertrand asserts that LHV Financial institution’s transition to the service supplier’s cloud-based system additional strengthens their partnership and can profit purchasers.

“Purchasers that function a number of enterprise traces from our system see the most effective returns and decreased value of possession,” Bertrand remarks. 

In addition to collaborating with Tuum to increase its Banking Companies enterprise line, LHV Financial institution companions with Salesforce for buyer administration and Salv for cost monitoring. 

Final week, LHV Financial institution additionally introduced a partnership with on-line saving platform Raisin UK. It’s the financial institution’s first step in its plan to launch direct-to-customer financial savings product choices subsequent yr.

Tuum helps banking corporations keep away from legacy issues

Estonia-based SaaS agency Tuum gives banking options for monetary establishments throughout Europe and the UK. 

Tuum says that many monetary corporations depend on their legacy techniques, making it difficult to adapt to the quickly altering market. 

It presents a number of options for these corporations to remodel and scale their companies. Tuum presents modules for core banking, lending, playing cards, and funds, the 4 vital capabilities in banking companies. 

Tuum’s core banking module streamlines the administration of accounts, transactions, deposits, and pricing. Its lending module accommodates the mortgage administration course of, from utility to contract. 

The cardboard module facilitates the issuance of debit and bank cards. Banking corporations use Tuum’s cost module to provoke and validate funds primarily based on their most popular cost formation guidelines.

About LHV financial institution

LHV Financial institution is a baby firm of Estonia-based LHV Group, a publicly traded monetary agency specialising in monetary companies. 

Established in 2012, it started servicing fintech purchasers in Estonia. LHV Financial institution then entered the UK market in 2018 by opening a London workplace.