Monument Bank partners with fintech Firenze
Monument Bank has entered a partnership with fintech Firenze to boost the lender’s stronghold among its mass-affluent consumer base.
The challenger bank gave Firenze a £160m backing with the aim to scale up its Lombard loan offering for wealth management firms.
The Manchester-headquartered fintech, which is just over a year old, offers loans against secure investments and looks to extend investment-backed lending to wider audiences.
Their joint venture looks to seize growing demand among the mass-affluent segment, with loans increasingly recognised as a valuable tool for strategic financial management.
The global Lombard lending market currently stands at $4.3tn (£3.4tn) and is expanding at a rate of five to 10 per cent per year, according to Deloitte.
Both firms anticipate the initial £160m facility is just the beginning of a long-term collaboration that will build over time.
Monument, which gets its name after the historic commemoration to the Great Fire of London, is among the UK’s biggest pre-IPO companies.
Investors were said to have been briefed over a potential listing on New York’s Nasdaq exchange, as first reported by Sky News.
‘Partnership made sense for numerous reasons’
Wasim Khouri, Chief Commercial Officer at Monument Bank, said: “We are thrilled to partner with Firenze, a fintech innovator that shares our passion for reshaping financial services.
“Lombard lending is a powerful tool that has long been the preserve of private banks, limiting access for many mass-affluent clients.
Khouri added the partnership would help propel the bank’s strategy in offering more tailored solutions that help preserve and grow its client’s wealth.
David Newman, Chief Executive Officer at Firenze, said: “This partnership made sense for numerous reasons.
“Like us, Monument is an innovative business, successfully challenging the traditional banking status quo and they showed deep enthusiasm for our vision to unlock Lombard lending.
“The demand in the market for Firenze’s Lombard lending offering has far exceeded our expectations and this facility allows us to meet the growing need for liquidity solutions from non-bank wealth managers and their clients.”