Monument Bank and Firenze Form £160m Partnership
Monument Bank, the UK challenger bank focused on the mass-affluent segment, has entered into a strategic partnership with Firenze, a fintech that provides Lombard lending services to wealth managers.
The deal includes a £160m (US$202m) funding commitment from Monument to help Firenze scale its operations.
Lombard lending, a form of borrowing secured against liquid investment assets such as equities, bonds and funds, has traditionally been limited to private banking clients.
The collaboration aims to make this financing option accessible to a broader market.
Industry observers note the unusual scale of partnership between an established challenger bank and an early-stage fintech.
The transaction structure allows clients to maintain existing custody arrangements for their investment portfolios while accessing the benefits of Lombard lending.
David Newman, Chief Executive Officer at Firenze, says: “This partnership made sense for numerous reasons.
“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.”
Expanding market access
The partnership responds to market changes as private banks continue to raise minimum wealth thresholds, creating a gap in Lombard lending availability.
Firenze's solution has gained traction among wealth managers seeking to offer these services to clients who fall below traditional private banking minimums.
Firenze currently works with wealth managers and investment platforms that oversee more than £50bn (US$63.2bn) in assets.
The company aims to serve the growing mass-affluent segment that seeks alternatives to liquidating investments when needing access to capital.
Lombard loans offer a streamlined application process compared to conventional lending products. Its key advantage is allowing clients to access liquidity without selling investments, thereby avoiding potential capital gains tax liabilities or disrupting long-term financial strategies.
The loans typically offer competitive interest rates due to the highly liquid nature of the collateral.
Wasim Khouri, Chief Commercial Officer at Monument Bank, says: "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.”
Market growth potential
According to Deloitte data, the global Lombard lending market currently stands at US$4.3tn and is expanding at a rate of 5–10% per year, indicating substantial growth potential for both partners.
The transaction was structured with legal advice from CMS for Monument and Addleshaw Goddard for Firenze. Both companies expect the initial £160m (US$202m) facility to expand as their collaboration develops.
A distinctive feature of the arrangement is the collateral structure, which includes portfolios of liquid securities with daily mark-to-market valuation, an approach not typically seen in forward flow arrangements in the lending sector.
For Monument, the partnership reinforces its position in providing tailored financial solutions to the mass-affluent segment, while Firenze gains the capacity to meet increasing demand from wealth management firms seeking Lombard lending for their clients.
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