Monument Bank has formed a strategic partnership with fintech Firenze to expand Lombard lending access for the mass affluent.
The funding deal will boost Firenze’s integrated Lombard loan offering for wealth management clients.
Lombard loans are a specialised form of personal lending in which banks grant secured credit to their private wealth management clients.
However, fintech start-up Firenze has broadened access to this type of financing by enabling wealth managers, advisers and investment platforms to access white labelled investment backed loans from £25,000.
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“This partnership made sense for numerous reasons,” said David Newman, chief executive of Firenze.
“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.”
The collateral provided by Firenze’s Lombard loans includes client portfolios of liquid securities with daily mark to market.
Both Monument and Firenze said that they expect the initial £160m facility is just the beginning of a long-term collaboration that will scale further over time.
“We are thrilled to partner with Firenze, a fintech innovator that shares our passion for reshaping financial services,” added Wasim Khouri, chief commercial officer at Monument Bank.
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“Lombard lending is a powerful tool that has long been the preserve of private banks, limiting access for many mass-affluent clients. At Monument, we believe this should change.
“By collaborating with Firenze, we are bringing Lombard to a wider audience — offering mass-affluent clients liquidity while allowing them to retain control of their investment assets. This partnership is a strategic step in our journey to offer more tailored solutions that help our clients preserve and growth their wealth.”
According to Deloitte, 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.
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