A new challenger bank that wants to target wealthy savers has raised £28m from individual investors ahead of its launch this summer.
Monument is targeting “mass affluent” clients, including property investors and entrepreneurs, offering a similar service to private banking. The neobank has said it will offer customers the opportunity to seek property investment loans of up to £2m.
Their Series A round, which exceeded its initial £20m target, has seen backing from Eric Zinterhofer, founding partner of private equity firm Searchlight Capital, and Harry Handelsman who oversaw the restoration of St Pancras Renaissance Hotel.
The round brings Monument’s total funds raised to around £40m ahead of its launch this summer.
Monument is in the last stages of securing a license with banking regulators having received its “authorisation with restriction” licence last October.
The team are looking to capture a portion of the UK’s growing affluent market with a model that it claims rewards loyalty.
“If an existing saver deposits money for a subsequent fixed term, they will get a better rate than a new customer,” Monument said. “And an existing borrower who renews their loan will also get a favourable rate.”
The challenger will be hoping its top team’s wealth of experience will accelerate the process.Chairman Niall Booker is a former chief executive of The Co-Op Bank and chief executive Mintoo Bhandari spent 11 years as senior partner and managing director of Apollo Global Management.
“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,” Bhandari said.
“Furthermore, as the global and national focus turns towards economic recovery, we are confident that digital first firms, including Monument, can play an exceptional role in supporting the ‘building back better’ of our economy.”