Interview with Erki Kilu – CEO of LHV Bank

Estonia’s Most Fintech‑Friendly Bank and a Quiet Giant in European Payments

🏦 Company Overview – LHV Bank

• Name: LHV Pank (LHV Bank)

• CEO: Erki Kilu

• Group: AS LHV Group

• HQ: Tallinn, Estonia

• Founded: 1999

• Employees: 900+

• Licenses: Full EU banking license from Estonian FSA

• Services: SEPA Instant, agency banking, EMI/PSP onboarding, FX, card issuing, Open Banking APIs

• Clients: Retail, business, fintechs, EMIs, crypto firms

• Website: https://www.lhv.ee/en

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🎯 Market Positioning & Competitors

LHV is known for being one of the most open banks to fintechs and PSPs in Europe, offering full-service banking rails — including SEPA, TARGET2, dedicated IBANs, and FX.

Its main competitors include:

• Banking Circle (Luxembourg/Denmark)

• ClearBank (UK)

• Bank Frick (Liechtenstein)

• Paynetics and Incore Bank

LHV’s edge lies in its regulatory clarity, deep experience with EMI/PSP flows, crypto-friendly policies, and developer-first mindset.

⚙️ Core Services from LHV Bank

• SEPA and SEPA Instant transfers

• Direct access to TARGET2 and ECS

• Dedicated IBANs for PSPs/EMIs

• PSD2 API access with developer portal

• Crypto-friendly corporate accounts

• FX, liquidity, and treasury solutions

• Mastercard BIN sponsorship

• Card issuing and processing (via partners or natively)

🎙️ Full Interview – 20 Questions with Erki Kilu

1. What makes LHV Bank different from other EU banks?

Erki Kilu:
We combine the robustness of a licensed EU bank with the speed and adaptability of a fintech. We were early to adopt direct SEPA and API-based banking, and we genuinely support fintech and crypto clients — not just in marketing, but in onboarding and service delivery.

2. How did you start serving EMIs and PSPs?

It started almost a decade ago when many traditional banks refused to serve PSPs. We saw an underserved but promising segment and started building a team and framework specifically for those clients.

3. Can EMIs open IBAN accounts with LHV?

Yes. We have a well-defined onboarding process for EMIs, PSPs, and even crypto VASPs. Once onboarded, they get access to direct SEPA, instant payments, and full API control.

4. Do you support crypto businesses?

We do — as long as they are regulated, AML-compliant, and transparent. We’re one of the few EU banks that have continuously supported licensed crypto firms, especially those registered under the Estonian FIU.

5. How do you assess and manage fintech risk?

Through rigorous but efficient due diligence. We look at the structure, flow of funds, compliance program, and partners. But we don’t automatically block clients based on their industry. Each case is assessed on merit.

6. What’s the average onboarding time?

For fintechs and EMIs with good documentation: 2 to 4 weeks. It depends heavily on how complete the information is and the complexity of their business model.

7. Do you offer SEPA Instant?

Yes. All our fintech and corporate clients can access SEPA Instant both for incoming and outgoing transactions. We also offer batch processing with fast reconciliation.

8. Are you a direct participant of SEPA?

We are a direct participant in SEPA, SEPA Instant, and TARGET2. That means we don’t rely on intermediaries, so our clients benefit from faster settlements and fewer delays.

9. Can your infrastructure be embedded via API?

Absolutely. Our banking services are fully API-enabled, and we have a developer portal with documentation for onboarding, account access, payment initiation, and more.

10. What’s your view on PSD2 in practice?

PSD2 is a great foundation, but the implementation across Europe has been uneven. Many large banks don’t truly open their infrastructure. We took the opposite approach — full compliance with PSD2 and developer usability.

11. What is your approach to KYC/AML for fintechs?

We go deep where needed, but we don’t obstruct unnecessarily. If the client is well-prepared and transparent, onboarding is smooth. We also work with several compliance tech partners to streamline due diligence.

12. Do you support BIN sponsorship or card issuing?

Yes, through our Mastercard membership and with third-party processors. We issue cards natively and also act as BIN sponsor for fintechs needing quick market access.

13. How are your FX and liquidity services used by clients?

Our fintech and EMI clients use our FX tools for treasury optimization, real-time conversion, and to offer multi-currency support to their own clients.

14. Do you work with payment orchestration platforms?

We do. LHV serves as the backend banking partner for many orchestration and gateway solutions. We power the underlying IBANs, payment rails, and liquidity layer.

15. How does LHV support embedded finance?

Via white-label infrastructure and APIs. We don’t brand ourselves over the services — we empower our clients to build the frontend while we handle the regulated backend.

16. Do you operate outside Estonia?

Yes. While based in Tallinn, we serve clients across the EEA. Most fintechs we onboard are from France, Germany, the Netherlands, Lithuania, and the Nordics.

17. Do you see a future beyond cards in Europe?

Definitely. SEPA Instant, Open Banking, and wallet-based payments are growing. Cards are still dominant, but we support infrastructure that will allow fintechs to adapt and diversify.

18. What’s your long-term vision for LHV?

To be Europe’s leading partner bank for regulated fintech. A utility layer — silent, stable, and scalable — powering 1,000s of innovative services.

19. How do you ensure uptime and reliability?

We’ve built resilient infrastructure with backup systems and very high uptime. Our clients can’t afford delays — and we design our systems accordingly.

20. What’s your message to fintechs looking for a reliable bank?

Talk to us. If your business is transparent and compliant, we will find a way to work together. We are not afraid of complexity — we embrace it.

🔍 Related Searches

• Best fintech banks in Europe

• LHV Bank API documentation

• SEPA Instant banks 2025

• Open business account for crypto in EU

• EMI friendly banks

• ClearBank vs LHV Bank

• SEPA direct participant list

❓ FAQ

Is LHV Bank part of SEPA Instant?

Yes. LHV supports SEPA Instant natively for both incoming and outgoing transfers.

Can a crypto company open an account at LHV?

Yes, if they are FIU-registered and pass LHV’s compliance review.

Is LHV a real bank or an EMI?

LHV is a fully licensed EU bank, supervised by the Estonian FSA.

Does LHV issue cards?

Yes, LHV is a Mastercard principal member and offers issuing directly or via fintech partners.

🧩 Conclusion

Under Erki Kilu’s leadership, LHV Bank has become a silent infrastructure giant in European fintech. Their openness to crypto, fast EMI onboarding, and direct SEPA participation make them a trusted partner for PSPs and innovators across the continent.