LHV Growth Account helping 10,000 people to invest

28. January 2020

One of LHV’s primary investment products, LHV Growth Account, exceeded the threshold of 10,000 active users last week. For many clients, the adoption of a Growth Account is their first step in investing.

According to Martin Mets, Head of Retail Investment Services at LHV Pank, the reason for the popularity of the Growth Account are the changes in recent years. ‘It is gratifying that many of the 10,000 Growth Account clients have begun investing in the past few years and in only a year the number of Growth Account users has doubled’, said Mets. ‘The popularity of the Growth Account received a significant boost 18 months ago, when we expanded our portfolio of funds with new funds and the extremely popular micro-investing opportunity was added, which increases the client’s investments with each card payment’, said Mets.

The Growth Account service was created with the goal of bringing investment to the masses, making it simple and easy to invest. The Growth Account proves that the belief that investing is expensive, time consuming and requires extensive knowledge, is a myth. Smaller amounts can also be placed, with low service fees, in risk mitigating broad-based index funds. The user only needs to select the suitable funds and transfer the money to their Growth Account. The bank purchases securities for clients on the Wednesday of each week. Using the permanent payment option or micro-investing, payments also reach the Growth Account automatically.

‘The large number of clients is recognition that the service meets the needs of clients. Thanks to the surge by stock markets last year, clients can definitely be satisfied with the growth of their assets: A total of 98% of Growth Account clients have seen the value of their investments increase,’ noted Martin Mets.

‘The LHV Growth Account is one of the most popular means to invest in Estonia. At the same time, there is plenty of room for growth. Despite the fact that the awareness of Estonians regarding investing has grown significantly over the past five years, according to the latest statistics from Eesti Pank, only about 5% of households have investments in securities. At the same time, for example, the population of Sweden is setting an example for the world with a nearly 75% investment rate among its adult population’, Mets explained. ‘Over the next five years, LHV aims to increase the share of investors in Estonia to 20% of the population, through continuous investment education and the best investment products. Thus, in five years, LHV Growth Account could potentially have at least 50,000 clients. In fact, every person of working age could automatically have a portion of their salary invested through a Growth Account and Micro-Investment. This would be a big step forward in the direction of financial freedom and would also set an example for the next generation in terms of financial literacy’, added LHV's Head of Retail Investment Services.

LHV has been actively collecting feedback from Growth Account clients and has received a number of good ideas and suggestions on how to further develop the LHV Growth Account and make it even easier and more convenient for clients.

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LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV employs over 430 people. LHV’s banking services are used by nearly 202,000 clients, and pension funds managed by LHV have nearly 177,000 active clients.

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