Signet Bank to Maintain Separate Operations with Magnetiq Bank, Focusing on Growth Strategies
Signet Bank, a leading Baltic financial institution, has announced that it will not merge with its newly acquired subsidiary, Magnetiq Bank. The decision reflects a strategic focus on allowing both institutions to leverage their distinct strengths.
“These are very different businesses,” explained Roberts Idelson, Chairman of the Board at Signet Bank. “Magnetiq Bank is at an early stage of development and has its own client base, but it is definitely expandable. Their focus is on providing specialized services to fintech companies serving small and medium-sized businesses. In the future, we see Magnetiq not only operating in the Baltics – we plan to become an exporter of financial services and will be looking at select European markets as a key part of this strategy.”
Idelson emphasized the success of a dedicated focus. “We have created an efficient team and a well-structured system within Signet Bank that is performing very well in the corporate and investment segments. By operating separately, we can both move forward more dynamically and maximize our potential.”
The decision comes after Signet Bank achieved its set goals for growth following the merger with Expobank in 2022.
“Our asset market share has increased from 1% in 2020 to 2.5% today. Deposits have grown from 0.9% to 2.3%, and our credit market share is up from 0.5% to 0.8%. We’re moving ahead of projections, and acquisitions form a key part of this strategy,” explained Idelson.
He confirmed that Signet Bank’s strategy includes not only acquiring companies but also acquiring portfolios of assets for further growth opportunities within the Baltic region and beyond.
Idelson noted that the absence of a specialized bank catering to the growing fintech sector in Latvia was a key motivator in acquiring Magnetiq.
Idelson believes the markets for both institutions are complementary. “We expect Magnetiq Bank to benefit from the existing synergies between the two banks.
” Signet Bank boasts a diverse shareholder base including Signet Acquisition III, with US investor Aleksandras Solovejs at the helm, Holding company endowmentist Raymonas Idelson underscored that awards, not just in the Baltics.
“We have already reached a point where the Baltic market alone presents growth opportunities for us,” concluded Idelson.
The acquisition of LPB Bank, now rebranded as Magnetiq Bank, allows Signet Bank to deepen its presence in the Latvian financial landscape. Its decision to operate the two banks separately underscores its commitment to specialized market strategies.
What are Signet Bank’s reasons for not merging Magnetiq Bank into its operations?
## Focusing on Fintech: Signet Bank Charts Growth Path for Magnetiq Bank
**Interviewer:** Thank you for joining us today Mr. Idelson. Signet Bank recently acquired Magnetiq Bank, but you’ve decided against merging the two institutions. Could you elaborate on that decision?
**Roberts Idelson:** Absolutely, and thank you for having me. This wasn’t just a simple acquisition for us; it was a strategic move to bolster our presence in the fintech sector while maintaining Signet Bank’s core focus.
Magnetiq Bank, while newly acquired, already has a distinct client base and a strong foundation in serving fintech companies, specifically those catering to small and medium-sized businesses. We see immense potential for growth in that market, both regionally and internationally. [[1](https://financefeeds.com/as-lpb-bank-is-transitioning-to-as-magnetiq-bank-and-will-henceforth-focus-on-the-fintech-and-e-commerce-sectors/)]
**Interviewer:** So, Signet Bank sees considerable value in Magnetiq operating independently?
**Idelson:** Precisely. Maintaining Magnetiq as a separate entity allows them to focus on their niche expertise and build on their existing strengths. It also allows us to avoid any potential conflicts of interest or dilution of our individual brands.
**Interviewer:** You mentioned international expansion, can you elaborate on those plans?
**Idelson:** Yes, while Magnetiq is currently focused on the Baltic market, we see potential to become an exporter of financial services. We’re strategically looking at select European markets where Magnetiq’s specialized services could be highly valuable to the growing fintech ecosystem.
**Interviewer:** Mr. Idelson, thank you for shedding light on Signet Bank’s growth strategy with Magnetiq Bank. We wish you both considerable success in the future.
**Idelson:** Thank you for your time. It’s an exciting time for both institutions, and we look forward to the challenges and opportunities ahead.
