The Intermediary speaks with Conor McDermott, director of SME lending at LHV Bank, about his background, the bank’s operations in the UK, and his vision for its future
What is your background, and what attracted you to LHV Bank?
My career in commercial lending spans over two decades, with significant roles in relationship management and strategic growth initiatives, both in the UK and overseas.
I started my career at Royal Bank of Scotland where I initially worked as an underwriter. By the time I left I had worked across credit, operations, underwriting and institutional relationship banking, providing me with a real breadth of experience in financial services.
I then went to work with a number of smaller organisations and challenger banks which is where my passion really lies. Immediately prior to joining LHV Bank, I led the lending department at Monument, where I focused on driving growth and enhancing client relationships.
I was attracted to LHV Bank because of its dynamic approach to SME lending and its strong foundation backed by an international group.
The opportunity to play a key role in a rapidly growing institution that is committed to making a real difference in the SME sector was something I couldn’t pass up.
For those that are not familiar with LHV Bank, can you briefly tell us about it?
LHV Bank is a relatively new entrant in the UK market, having secured its banking license in May 2023. That said, unlike other challenger banks in the marketplace, we have a very well-established parent with a strong capital and liquidity base.
We specialise in three main lending areas: specialist buy-to-let (BTL), commercial real estate investment, and owner-occupier commercial mortgages.
Our products are designed to cater to the unique needs of small to medium-sized businesses across England, Wales, and Scotland, offering loans from £500,000 to £10m and above.
Our approach is tailored to support businesses with reliable and flexible financial solutions.
What is your remit and how big is your team?
As the director of SME lending, I oversee the strategic direction and expansion of our lending services. My role involves enhancing product offerings, developing client relationships, and steering the bank’s growth in the SME sector.
We currently have two teams. I inherited a very experienced team based in Manchester and have subsequently built up a team in London as well; through these two offices we cover England, Wales and Scotland.
We recently expanded our London team to include two experienced relationship managers, further supporting our ambitious growth targets and managing an ever-increasing loan book.
What is your intermediary strategy?
We are an intermediary-focused lender and our strategy is based on building strong relationships with brokers, both directly and through industry bodies.
We are selective with our distribution and currently have around 60 brokers that we deal with; while we may add a few more, they constitute our core partners for the foreseeable future.
Importantly, we are also patrons of the NACFB and FIBA, and have a strong relationship with Pro-Manchester. We aim to be the preferred lender in our sectors by highlighting our strengths: swift and reliable decision-making, flexibility in handling complex loans, and a strong track record of stability and performance.
By communicating these strengths, we aim to ensure that intermediaries see LHV Bank as a reliable partner for complex financial solutions.
What growth aspirations do you have at the bank, and how has 2024 been so far?
In 2024, we set an ambitious target to issue £200m in new loans. We’ve made significant strides towards this goal, driven by strategic leadership and the lending teams in London and Manchester.
Our move into the specialist BTL sector has also contributed to our growth, helping us meet the diverse needs of our clients more effectively.
Despite securing our banking licence just over a year ago, our deposits are already over £250m and we’ve provided £132m in lending, so we have a very healthy run rate.
What differentiates the bank from its competitors?
LHV Bank stands out for a number of reasons, starting with the previously mentioned parent: it’s a profitable international group that ensures consistent and reliable financial backing. The importance of that can’t be understated.
In addition, I would argue that our ability to make swift decisions and handle complex lending situations sets us apart in the industry. We offer tailored financial solutions that provide our clients with the flexibility they need to thrive.
Our commitment to understanding and adapting to the unique challenges of each client, by working closely with the broker, allows us to provide unparalleled service and support in the SME lending space.
Because of the teams’ widespread experience in SME and commercial lending, together with our advanced lending platform, we are geared up for dealing with complex cases. We can create bespoke lending solutions for customers who may have found other lenders wanting, due to their complex needs.
That said, we’re keen to stress that complexity doesn’t automatically equate to a long process. For example, while our decision-making process is extremely robust, our collection experience means we evaluate cases promptly.
