Firenze and Monument Bank forge £160m Lombard lending partnership
Firenze, the fast-growing fintech offering Lombard lending to wealth managers, has formed a strategic partnership with Monument Bank, the UK’s first challenger bank dedicated to the mass-affluent segment.
Monument has committed a £160m funding line to Firenze, empowering the fintech to scale its Lombard loan offering for wealth management firms while reinforcing Monument’s position as a leading provider of tailored financial solutions to its target market.
The transaction is unprecedented for four key reasons:
- This is the first proposition that broadens access to Lombard lending, democratising what has typically been available only in private banks;
- The magnitude of the partnership between a challenger bank and early-stage fintech;
- The novelty of the structure, which prevents the need to change custody arrangements for the client’s investment portfolio; and
- The collateral provided is portfolios of liquid securities (clients’ investment portfolios) with daily mark to market, which is typically unseen in forward flow arrangements.
Working in close partnership, Monument and Firenze, advised by CMS and Addleshaw Goddard respectively, have structured the transaction to meet the evolving needs of clients. Both parties anticipate that the initial £160m facility is just the beginning of a long-term collaboration that will scale further over time.
David Newman, chief executive officer at Firenze, said: “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.”
Wasim Khouri, chief commercial officer at Monument Bank, said: “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.”
Expanding Access to Lombard Lending
The partnership will enable Firenze to expand its Lombard loan offering to a broader segment of wealth management clients. Historically, Lombard loans were largely restricted to private banking clients. However, as private banks continue to raise their minimum wealth thresholds and more advisors transition to independent models, access to these loans has become increasingly constrained.
Firenze’s innovative solution has already gained traction, with a growing base of wealth managers integrating it into their offerings.
The company is currently working with wealth managers and investment platforms overseeing more than £50bn in assets.
Lombard loans, secured against liquid investment assets such as equities, bonds, funds, or commodities, offer a more streamlined application process compared to traditional lending products. Their flexibility makes them an attractive option for clients looking to access liquidity without liquidating investments, thereby avoiding capital gains tax liabilities or disrupting long-term financial strategies. Given their highly liquid collateral, Lombard loans also offer competitive interest rates and substantial borrowing capacity relative to portfolio value.
With growing demand from the mass-affluent segment, these loans are increasingly recognised as a valuable tool for strategic financial management.
According to Deloitte, the global Lombard lending market currently stands at $4.3 trillion and is expanding at a rate of 5–10% per year.