Monument Bank has partnered with Firenze, a fintech offering Lombard lending to wealth managers.
The UK-based challenger bank has committed £160 million in funding to Firenze, allowing the fintech to expand its loan offering to more wealth management clients, while previously they were only available to private banking clients.
The arrangement does not require a shift in custody arrangements for the client’s investment portfolio. In contrast with other lending offerings, Lombard loans are secured against liquid investment assets, and are more flexible due to their liquidity and competitive interest rates.
David Newman, CEO at Firenze, commented: “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 partnership is the beginning of a long-term collaboration between the two financial institutions.
Wasim Khouri, chief commercial officer at Monument Bank, stated: “We are thrilled to partner with Firenze, a fintech innovator that shares our passion for reshaping financial services. 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.”