Challenger bank Monument has revealed that it is in the later stages of an application process to get a UK banking licence in order to launch a service for affluent clients.
The UK is home to some of Europe’s most successful neobanks. Revolut, Monzo, Starling Bank and OakNorth all hail from Britain. Over the years, several other challenger banks, such as Monese and Pockit, have added themselves to the fold. However, the founders behind startup Monument think that there is still room in this seemingly saturated market for another neobank.
Monument, which is in the final stages of getting approved for a UK banking licence, is a new digital-first bank. What separates it from many of its peers is that it is not a bank for the regular Joe on the street. Instead, Monument will target individuals who have a net worth of between £250,000 and £5m. Monument claims that this demographic – spanning traditional ‘premier’ and private banking customers such as doctors, lawyers, accountants, entrepreneurs and investors – has been largely unaddressed by the challenger bank boom in the UK until now and underserved by premier and private banking.
The digital-first bank will offer savings and property investment lending products to clients, with cutting edge technology enabling entirely digital app-based and online services.
Monument claims it will be the only bank to offer its clients an entirely digital journey for buy-to-let and property investment lending of up to £2m at “top quartile savings rates” in a model “designed to reward loyalty.”
The leadership also suggests that Covid-19 could help it get traction. “We never planned to launch a bank during a global pandemic,” Mintoo Bhandari, CEO and co-founder of Monument. “But it turns out – as we now find ourselves in the latter stages of the regulatory approval process – the timing is highly relevant. Clients want the ability to bank effectively at their convenience and wherever they are, on their phone or computer and more robustly than they would have imagined possible just last year.
“Increasingly, private banking is focused on the ultra-high net worth and lags when it comes to embracing modern technology. And premier banking really only exists in name only. We recognise there is a substantial community who deserve far more than they currently experience from their existing bank.
“Within this underserved segment are doctors working tirelessly through the pandemic, lawyers and accountants working remotely around the clock to help clients navigate the situation, and entrepreneurs and founders of scaling businesses that are crucial employers and represent the future of our economy. They do not experience the level of care and attention from banks that they deserve and expect, and that they deliver to their own clients, especially in these challenging circumstances. Neither do they feel that their loyalty is appreciated.
“Our goal is to create an institution that truly understands this community, treats their time as more valuable than its own, appreciates their loyalty, helps them save and grow their wealth, but which also recognises that there is more to wealth than money.”
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