LHV Bank has joined the second cohort of the Prudential Regulation Authority (PRA) and Financial Conduct Authority's (FCA) scale-up unit as it looks to expand its UK banking operations.

Launched in October 2025 as part of the government's Financial Services Growth and Competitiveness Strategy, the scale-up unit provides high-growth banks and building societies with dedicated regulatory support to help them scale sustainably.

LHV Bank said joining the programme marks the next stage of its UK growth plans following its full UK banking authorisation in 2023.

The bank operates three business lines in the UK: a retail current account and savings business, SME lending and a banking services division that provides payments infrastructure and banking technology to FinTechs and financial institutions.

According to the bank, it recorded £1.1 billion in customer deposits, £700 million in lending and £5 million in profit after tax during 2025.

As part of the scale-up unit, LHV Bank will receive a dedicated regulatory contact to support engagement on product development, regulatory processes and the challenges associated with growing its business.

Kris Brewster, interim chief executive officer of LHV Bank, said that joining the scale-up unit is an important step in the bank's growth and supports its commitment to scaling responsibly, with the right governance, resilience and customer focus.

“Our ambition is simple: to make banking work harder for our customers and partners. That means competitive savings products for people who take their money seriously, lending that helps ambitious businesses grow, and building the payment infrastructure that fintechs and financial institutions across the UK and Europe depend on,” he added.

“We're proud to be building a bank with ambition, and we look forward to working closely with the PRA and FCA as we continue to grow and contribute to the UK's financial services sector.”

Earlier this month, LHV Bank announced the appointment of Damian Thompson as chief executive officer to lead the digital bank’s next phase of growth.

Thompson has over 30 years of experience across UK banking, structured finance and financial services. He joins LHV Bank from Starling, where he served as chief executive for company’s buy-to-let lending arm Fleet mortgages.

---