Technical Migration Customer Q&A

Dear Customer,

Following our UK banking licence approval, we are transitioning to a fully authorised UK credit institution. This milestone allows us to accept customer deposits and transition from operating under the temporary permissions regime as a branch of Estonian retail bank AS LHV Pank to being a fully authorised and regulated bank by the Prudential Regulatory Authority and the Financial Conduct Authority.

Yours,
Erki Kilu
CEO, LHV BANK

General information

This section explains why the migration is necessary, why LHV applied for a UK banking licence, and outlines the main differences between LHV’s EU-based and UK-based services.

LHV applied for a UK banking licence to secure and expand our UK-based services for customers post-Brexit. The temporary permissions regime, a system implemented by the UK to allow European Economic Area-based firms to continue operating in the UK after Brexit, will end on December 31, 2023. By obtaining a UK banking licence, LHV ensured that we can continue to operate and expand in the UK, delivering high-quality GBP-based banking services to our global fintech clients.

We now operate in the UK as LHV Bank Limited (LHV Bank), reflecting our status as a UK-authorised credit institution.

The technical migration is a critical step following our approval as a UK banking institution. This process allows LHV Bank to become a fully authorised UK credit institution capable of accepting customer deposits and adhering to UK banking regulations. It also marks our transition from operating under the temporary permissions regime as a branch of Estonian retail bank AS LHV Pank, to being a fully authorised and regulated bank by the Prudential Regulatory Authority and the Financial Conduct Authority in the UK.

The UK credit institution authorisation brings several benefits for LHV and its clients:

  • Enhanced services – we will expand and improve our existing products and services offering;
  • Improved market access – allowing faster integration and ‘go to market’ with new UK-native products and payment schemes;
  • A new core banking system and Customer Portal, tailored explicitly for our fintech clients, with enhanced functionality and security features; and
  • Stability and security as a well-governed UK-authorised bank, which is a part of Estonia’s largest domestic financial group and capital provider.

Please note that the key distinction between the two service categories is based on the geographical focus of operations, not just the primary currency used.

EU services:

  • Operate out of Estonia, with account IBANs beginning with ‘EE’.
  • Primarily use EUR as their principal currency for local services such as SEPA Instant, SEPA DD, and TIPS.
  • Cater to clients needing access to European financial markets and services.

UK services:

  • Operate from the UK, with account numbers starting with ‘GB’.
  • Primarily utilise GBP as the principal currency for local services such as Faster Payments and Bacs.
  • Cater to clients who need access to UK financial markets and services.

No, the migration will not impact EU services (such as SEPA Instant, SEPA DD, and TIPS), as these services will continue to be provided by AS LHV Pank. Your contractual arrangements for EU services will not be affected by the migration.

No, account numbers and sort codes for UK services will not change as a result of the transition.

  • Understand the benefits and rationale behind the migration.
  • Familiarise with the differences between LHV’s EU and UK services.
  • Note that UK account numbers and sort codes will not change.

Migration Process & Support

This section provides you with important dates and processes related to the migration. You'll also learn about the support measures LHV Bank has in place to guide you through the transition period.

For clients who utilise both UK and EU services, this transition only impacts their UK-based operations. Key changes include the migration of the Connect API to a new UK-based host and the introduction of a new Customer Portal specifically designed for UK services. Clients are required to take specific actions such as updating their API host, transitioning to the new Customer Portal, and adjusting to the time zone change for UK services.

However, the operations and access to EU services, including the associated Connect API and the Internet Bank, remain unaffected. Therefore, clients can continue using EU services as before.

Overall, while the transition necessitates some adjustments in the UK services, it ultimately aims to enhance the client experience by introducing more tailored and improved services for UK operations.

The technical migration will start on 22 August 2023 at 23:15 EEST/21:15 BST and is expected to complete in 3 hours.

LHV Bank is committed to ensuring a smooth migration process with relationship managers and operational and product teams ready to support clients by addressing any questions or concerns. Clients are encouraged to contact their LHV representatives for assistance whenever needed.

Technical Aspects

Here, we delve into the key technical changes the migration will bring about, from time zone adjustments to handling Faster Payments. Please review this section carefully to prepare for these changes and minimise any disruption to your business operations.

Yes, the time zones for UK services for the Customer Portal and the Connect API will be adjusted to British Summer Time (UTC+1). The time zone for EU services accessed via the Internet Bank and the Connect API will not change.

Yes, on the 22 August, Connect API will be inaccessible for UK Services for up to 3 hours from 21:15 BST/23:15 EEST. During this period:

  • Outgoing Faster Payments via Connect API will not be possible; attempts will return ‘HTTP code 503 (Service Unavailable)’.
  • Inbound payments will be on hold and credited after migration.

No, payment files for EU and UK services must be submitted separately after the migration.

We will keep you up to date through regular communication, including e-mails and updates to this FAQ page. The relevant teams will be in touch with updates on the migration process and any specific actions required from clients on topics such as portal access in the near future. Clients are encouraged to reach out to their LHV bank representatives with any questions or concerns they may have during the transition period.

Connect API Transition

This section focuses on the changes needed to ensure the continued operation of the Connect API for UK services and the consequences of not implementing these changes.

We are moving our Connect API to a UK-based host with the migration. You must update your API host (root URL) to the new UK host to continue using the Connect API for UK services. This change is crucial and should be made before 22 August. Failure to make these changes will result in your inability to use the Connect API for UK services. Please also review our API spec regarding dateTime formats here.

The new UK Connect gateway is already live, allowing you to make the necessary changes well in advance, securing a smooth transition. We've prepared updated specifications to guide you through the necessary changes for the Connect API, accessible here.

After updating your API host according to our new specifications, please notify us by emailing connect@lhv.com and kaido.kibena@lhv.com. We will then enable the gateway change on our side.

Failure to update the API host by 22 August will disrupt the UK services accessible through Connect API, such as access to account statements, credit/debit notifications, payments, opening of virtual IBANs, and indirect scheme access. Therefore, we strongly recommend implementing these changes as early as possible to ensure uninterrupted services.

  • The new UK Connect gateway is already live.
  • Review the updated Connect API specifications
  • Before going live, notify LHV by emailing connect@lhv.com and kaido.kibena@lhv.com and await confirmation
  • Update your API host to the new UK host.
  • Complete all these steps before 22 August to avoid disruption in services.

Indirect Scheme Access

In this section, we discuss the changes needed for clients using the Indirect Scheme Access and detail the impact of not implementing these changes.

Clients that have joined the Faster Payments payment scheme via Indirect Scheme Access need to update the Bank Code in their messages to ‘LHVBGB2L’ for UK services. No changes are required for indirect participants in EBA schemes.

This change needs to be made before the migration day, 22 August. Failure to update the Bank Code by this deadline will prevent you from syncing new accounts under the Indirect Scheme Access setup.

If you fail to update the Bank Code by 22 August, you will no longer be able to sync new accounts under the Indirect Scheme Access setup. Please implement these changes as soon as possible to ensure uninterrupted services.

If your company is an indirect participant in Faster Payments and EBA schemes and has accounts synced to both, you must use ‘LHVBGB2L’ for UK services and ‘LHVBEE22’ for EU services.

  • Understand the required changes for clients using the Indirect Scheme Access.
  • Update the Bank Code in your UK services messages to ‘LHVBGB2L’ before the migration day, 22 August.
  • Update your API host (root URL) to the new UK host to continue using UK services (see ‘Connect API’ section above).
  • Understand the implications of not implementing these changes on time.

The New Customer Portal

LHV Bank is introducing a new Customer Portal that will serve as the primary access point for your UK services from 22 August. Your EU services will remain accessible via our existing Internet Bank. This section introduces the features and advantages of the new Customer Portal and further information on the transition process.

The new Customer Portal is specifically designed for fintech companies and is tailored for the UK market. It will serve as the access point for UK services (e.g., Faster Payments, Bacs) while the existing Internet Bank will continue to provide access to EU services.

The new Customer Portal features an enhanced user experience, streamlined user management, and mobile-based strong customer authentication and is built to allow agile delivery of future functionality.

The portal will enable access to the following features:

  • Viewing account balances, account transactions, and individual transaction details.
  • Downloading account statements, payment confirmation slips, and audit reports.
  • Initiating, importing, and approving payments.
  • Managing user access and limits.

The Customer Portal will be made available in a “view-only” mode in early August. This gives you enough time to familiarise yourself with its features and verify the successful migration of user access rights and limits.

On the 22 August, the Customer Portal will be inaccessible for up to three hours from 21:15 BST/23:15 EEST. During this period, the portal will transition from the “view only” mode to your sole gateway for all UK services. Post-migration, the full functionality of the portal will be available.

Each user will receive an onboarding email containing detailed instructions on registering with the LHV Bank’s New Customer Portal. The onboarding emails will be sent to the email addresses registered in our Internet Bank database in early August once we open the Customer Portal in “view-only” mode.

The registration process involves the following steps:

  • Downloading the LHV Bank mobile authenticator application;
  • Logging in to the Customer Portal and changing your password (a temporary password will be included in the onboarding email);
  • Verifying your mobile phone number using a one-time confirmation code (confirmation code will be sent to your registered mobile phone number); and
  • Linking the LHV Bank mobile authenticator app with your Customer Portal account.

Upon successfully completing the registration process, you will be able to log in to the LHV Bank Customer Portal by navigating to the LHV Customer Portal log in page, entering your username and password, and confirming login with your LHV mobile authenticator application.

LHV Bank’s mobile authenticator, LHV ID, will be available for download from the Apple App Store or Google Play. Customers will be able to download the application by scanning a QR code during the registration process. LHV mobile authenticator requires Android 5.0 (“Lollipop”) or higher or iOS 12 or higher.

The main change is the shift from accessing UK services via the existing Internet Bank to the new Customer Portal. The portal offers improved features for managing your banking services, such as a more intuitive interface for viewing account details, simplified transaction management, and better user access controls. Remember, the change does not affect EU services, which will still be accessed through the current Internet Bank.

The new Customer Portal provides account statements in PDF, CSV, and SML formats – confirm that these are suitable with your accounting or ERP systems.

  • Ensure that the user rights of your organisation are up-to-date. You can do this by logging in to the Internet Bank and reviewing the current user rights and limits. The relevant information can be found by navigating to the ‘Information and settings’ and then the ‘Accounts and limits’ tab.
  • Make sure all users that require access to UK services review their phone numbers and emails to guarantee they will receive the onboarding instructions to the new Customer Portal.
  • Contact us at fi-support@lhv.com to remove irrelevant users, change emails and phone numbers, or if you have questions about users and/or access rights.

Please keep an open line of communication with us; our team is here to offer support when facing difficulties or answer any inquiries during the transition. Please ensure that all your team members are aware of this change and that they’re ready to adopt the new Customer Portal once it is up and running.

Failure to sign up to will result in the user being unable to access and manage UK services through the new portal based on their current roles and privileges.

No, opening new UK accounts through LHV Pank’s Internet Bank, the gateway for EU services, will be permanently disabled on 21 August, the day before the migration. To open new UK accounts, please contact your Relationship Manager.

Other Important Changes

To ensure a smooth migration, ensure all debt is cleared from your UK accounts before 22 August.

Post-migration, our UK services will initially only support the GBP currency. Therefore, you must review the balances on your UK accounts and transfer or convert any non-GBP balances by 17 August. The remaining non-GBP balances will be auto-converted by LHV Bank from 18 August.

Post-migration, the time zones for both the Customer Portal and the Connect API for UK services will be changed to British Summer Time (UTC+1). This means all your operations, timestamps, and schedules will correspond with UK local time, reducing potential confusion due to time zone differences.

All payments which are not fully approved at the time of the migration (e.g., waiting for a second signature) will be cancelled at the migration time. You can see these payments in the existing Internet Bank as cancelled, and Connect customers will receive a notification with the cancelled status.

Client Full Checklist

LHV Bank has created this checklist to guide you through the necessary steps to ensure a seamless transition during the migration. Adhering to these steps will help avoid potential disruptions in your services, ensure uninterrupted access to your UK services, and optimise your experience with our new systems.

Review this Q&A document as well as communication from LHV Bank to understand the implications of the migration for you and your business.

If you are using our Connect API for UK services, update the API host (root URL) to the new UK host before 22 August. You can already start working on this update; refer for more info and notify us prior to going live with the new gateway at connect@lhv.com and kaido.kibena@lhv.com.

During the night of the 22 August, the Customer Portal and Connect API will be inaccessible for UK Services for up to three hours from 21:15 BST / 23:15 EEST. During this period:

  • Account service requests via Connect API will not be possible; attempts will return ‘HTTP code 503 (Service Unavailable)’.
  • VIBAN service requests via Connect API will not be possible; attempts will return ‘HTTP code 503 (Service Unavailable)’.
  • Outgoing Faster Payments via Connect API will not be possible; attempts will return ‘HTTP code 503 (Service Unavailable)’.
  • Inbound payments will be on hold and credited after migration.

Should downtime exceed the planned three hours, we will notify you by e-mail and update our API status page.

Prepare for the shift from accessing UK services via the existing Internet Bank to the new Customer Portal, the details of which will be shared via e-mail. As part of this transition:

  • Check that the contact details of all the users needing access to the UK services are correct and up to date on the Internet Bank by the end of July.
  • Ensure you receive and understand the detailed registration guide that will be sent to you via email (at the beginning of August).
  • Familiarise yourself with the new Customer Portal and its functionalities once it’s live in the “view only” mode.
  • Confirm that user access rights and limits have been successfully migrated to the new Customer Portal.
  • Complete the transition to the new portal by 21 August to avoid any disruptions in accessing your UK services.
  • The new Customer Portal provides account statements in PDF, CSV, and SML formats – confirm that these are suitable with your accounting or ERP systems.

Transfer or convert any non-GBP balances on your account by 17 August. The remaining non-GBP balances will be auto-converted by LHV Bank from 18 August.

If any debts are associated with your UK services, please clear them before the migration day, preferably before 22 August.

Be aware that the time zones for both the Customer Portal and the Connect API for UK services will be adjusted to British Summer Time (UTC +1).

If you've joined the Faster Payments payment scheme via Indirect Scheme Access, update the Bank Code to LHVBGB2L in your messages before the migration day on 22 August.

Ensure that all payments are fully approved before the migration. Payments not fully approved by the time of migration will be cancelled.

Please contact us if you face any challenges or have any questions during the transition.

Please remember that these steps are crucial for a smooth migration and to ensure uninterrupted access to your UK services.