The new digital lender, Monument Bank, has secured an ‘authorisation with restriction’ (AWR) banking licence from the UK regulatory authorities, the Prudential Regulation Authority and the Financial Conduct Authority. It has achieved this milestone in just over 18 months, which is one of the fastest rates of progress for any new bank.
The move comes ahead of its launch in early 2021. Monument Bank is also looking to close a funding round to support its launch.
Monument Bank will focus at professionals, property investors and entrepreneurs who have a net worth of between £250,000 and £5m. The bank will offer an entirely digital journey for buy-to-let and property investment lending of up to £2million. As well as, a range of savings products.
Further, the Bank is also in the process of completing a Series A funding round backed by a combination of existing and new experienced investors. However, the bank has raised €20m of funding from investors so far.
The new digital lender intends to tap into Britain’s €200bn affluent savings market and £3.5 trillion in combined net wealth.
Moreover, it will offer market-leading, top-quartile savings rates and the purpose of its model is to reward loyalty. So, if savers deposit money for a subsequent fixed term, they will get a better rate than a new customer. And a borrower who renews their loan will also get a favourable rate.
Monument’s executives and board members have held senior roles in HSBC, Barclays, McKinsey & Co, UBS, Goldman Sachs, Apollo Global Management, PWC, Coutts and UK regulators.
Mintoo Bhandari, CEO and co-founder of Monument Bank, said:
“We are delighted that we have received our banking licence and are incredibly excited about delivering the exceptional levels of client service that the mass affluent deserve and which has been lacking from existing premier and private banks.
“The speed with which we have been executing our plans and progressing through the regulatory process are a testament to the exceptional quality of our team and the vote of confidence by investors in our strategy, in a world that is otherwise full of challenges.
“We now eagerly look ahead to completing the build of the Bank and launching for clients in 2021. Our mission continues to be to combine the capabilities, convenience and efficiencies that modern technology offers with traditional values of trust, security and strength, and to deliver unrivalled service that our valued clients will demand.”
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