New digital bank ‘Monument’ to launch
The challenger brand says it will focus on the ‘unmet demands’ of more than 4 million wealthy customers, delivering levels of client service that it says are lacking in the premier and private banking market.
The new bank’s offering will include property investment loans of up to £2m through ‘digital lending journeys’. It will also offer savings products.
Monument says that, unlike most other banks, it will reward loyalty. For example, if an existing saver deposits money for a subsequent fixed term, they will get a better rate than a new customer. Similarly, an existing borrower who renews their loan will also get a favourable rate.
Monument has now completed Series A funding and raised more than £28m. It claims there has been strong demand from investors which significantly exceeded expectations.
Series A funding is one of the stages in the capital-raising process of launching and developing a firm.
Since inception, Monument has raised more than £40m in funding, and says it is now well placed to complete the build of its technological and operational capabilities and to be ready for launch in the Summer of 2021.
Monument’s backers include Eric Zinterhofer (a founding partner of Searchlight Capital), Rakesh Loonkar (one of Goldman Sachs’ ‘100 Most Intriguing Entrepreneurs’), and property developer Harry Handelsman.
Monument received its ‘authorisation with restriction’ (AWR) banking licence from the Financial Conduct Authority (FCA) in October 2020.
The bank is now in last stage of the licencing process – called ‘mobilisation’ – where it is finishing building the infrastructure and processes, expanding its team, and demonstrating to the regulators that it is ready for launch.
When the FCA is satisfied, and the restriction on the licence is lifted, Monument will be able to scale up deposit taking, lending and begin operating as a fully-fledged bank.
Mintoo Bhandari, CEO and one of the founders of Monument, said: “We are very pleased and excited to have successfully completed our Series A funding round, exceeding targets, against such a challenging backdrop.
“We are truly thankful to our investors who have shown faith in the robustness of our business strategy, the strength of our team, and the clarity of our plans. Looking ahead, 2021 will be an even more significant year for Monument as we continue to build our bank, expand our capabilities, launch, and serve the mass affluent, and provide them the level of client service they deserve.”