Monument Bank has joined forces with Firenze, a fintech specializing in Lombard lending for wealth managers. The UK-based challenger bank has committed £160 million in funding to Firenze, enabling the fintech to extend its loan offerings to a broader range of wealth management clients, which were previously available only to private banking clients.
This partnership does not necessitate changes to the custody arrangements for clients’ investment portfolios. Unlike other lending options, Lombard loans are secured against liquid investment assets, providing greater flexibility due to their liquidity and competitive interest rates.
David Newman, CEO of Firenze, remarked, “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.”
This collaboration marks the beginning of a long-term relationship between the two financial institutions. Wasim Khouri, Chief Commercial Officer at Monument Bank, expressed enthusiasm for the partnership, stating, “We are thrilled to team up with Firenze, a fintech innovator that shares our passion for reshaping financial services. Lombard lending is a powerful tool traditionally reserved for private banks, which has limited 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, providing mass-affluent clients with 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 grow their wealth.”