New digital bank will focus on the ‘mass affluent’
The bank first announced its plans in February. The Prudential Regulation Authority and Financial Conduct Authority have now lifted deposit restrictions on Monument’s banking licence, meaning it can operate as a fully-licensed deposit taking bank.
The challenger bank claims to be the first in the UK to focus on the needs of an estimated 4.8 million ‘mass affluent’ clients including professionals, entrepreneurs, and property investors.
Monument says its ‘leading-edge technology combined with the skill and experience of professionals’ will set a new standard in banking customer service.
The bank has raised £60m in capital to date having completed one of the largest Series A funding rounds in fintech-banking earlier this year. Investors include a significant South American financial institution and S CUBE Capital, a fund managed by a Singapore based financial institution.
Mintoo Bhandari, CEO of Monument, said: “We are very pleased to share the news that the regulators have given us the green light to proceed to commercial launch. We are ready and eager to serve clients, who we believe have been lacking a bank that is being developed to serve their needs and service requirements.
“While we never planned to build and launch a bank in the middle of a global pandemic, the timing could not have been more relevant as the demand for, and comfort with, digital finance has accelerated dramatically over the past 18 months.
“We are very excited to take our first steps of addressing the substantial, aspirational, hard-working, asset-rich but time-poor community which holds trillions in wealth in the UK and which lacks the right financial services partner.”
Monument launch products
At launch, the bank plans to offer clients buy-to-let and bridging loans to support landlords to manage and grow their portfolios. Clients will be able to borrow up to £3m for buy-to-let property investments, supported by specialist relationship managers with experience of the market and understanding of client needs.
Monument will also offer easy access and various fixed term savings products, providing competitive rates for people looking to save £25,000 or more.
The bank says it has a different approach to client loyalty than other banks. It says that if an existing saver deposits money for a subsequent fixed term, they will get a better rate than a new customer. Meanwhile an existing borrower who renews their loan, or takes an additional loan, will also be offered a favourable rate.
Potential bank customers can now register their interest and join the waiting list on the Monument website.