Magnetiq Bank
| Company type | Public company |
|---|---|
| Industry | Banking, Financial services, Fintech |
| Predecessor | JSC "LPB Bank", Latvijas Pasta Banka |
| Founded | September 5, 2008 |
| Headquarters | Riga , Latvia |
Area served | Latvia, European Economic Area, OECD countries |
| Products | Payment services, fintech innovations, corporate financing, brokerage services |
| Owner | JSC Signet Bank (since December 2023) |
Magnetiq Bank (previously known as JSC "LPB Bank" and Latvijas Pasta Banka) is a financial institution based in Latvia that concentrates on e-commerce as a payment service provider, fintech innovations, corporate financing, and brokerage offerings. It caters to a large portion of clients from outside Latvia and operates within the Latvian financial market as a member of the Finance Latvia Association.
In 2024, the institution underwent a rebranding to become Magnetiq Bank.
Establishment
The bank was founded on 5 September 2008 and later renamed JSC "LPB Bank" on 15 December 2017. Up until December 2023, it was fully owned by the holding company Mono Ltd. On 11 December 2023, following approvals from the Bank of Latvia, the European Central Bank, and the Competition Council, Mono Ltd transferred its entire shareholding to JSC Signet Bank. This transaction led to changes in ownership structure and management to support Signet Bank’s strategic objectives.
Located in a building constructed between 1984 and 1991 for the “Aeroflot” central agency, the bank’s headquarters are notable for their unique architectural design by Modris Ģelzis, a prominent Latvian architect.
Regulatory scrutiny and penalties
The bank was involved in the 2014 Moldovan bank fraud scandal alongside ABLV Bank and PrivatBank, which resulted in a penalty of 305,000 Euros. In 2018, Latvia's Financial and Capital Market Commission (FKTK) imposed a fine of 2.2 million Euros—amounting to 10% of its turnover—due to ongoing breaches of anti-money laundering and counter-terrorist financing requirements. The FCMC emphasized the bank’s inadequate response to "unusually large, complex, inter-related transactions" that lacked transparent economic or lawful justification.
Strategic shift
In 2018, the bank introduced an updated strategy to the FCMC that pivoted towards FinTech solutions and e-commerce services. This new approach also redirected its market focus from the CIS countries toward the European Economic Area (EEA) and OECD territories, reflecting changes in regulatory frameworks and business priorities.