New digital bank Monument has raised £28 million in a Series A funding round.
Based in London, Monument’s new backers include Eric Zinterhofer, a founding partner of Searchlight Capital, entrepreneur Rakesh Loonkar and property developer Harry Handelsman.
Existing investors also contributed to the round, which takes Monument’s total funding to date to more than £40m with no reliance on government schemes or public money.
It says it is now well–placed to complete the build of its technological and operational capabilities and to be ready for launch in the summer of 2021.
Monument received the first part of its banking licence in October 2020, which was a key step forward in its plans to launch the first challenger bank in the UK to meet the unmet demands of over four million professionals, property investors, entrepreneurs and others that are seeking a bank to help them save and grow their wealth.
The bank says it is now well–advanced with last stage of the licensing process – called ‘mobilisation’ – where it is finishing building the infrastructure and processes, expanding its team, and demonstrating to the regulators that it is ready for launch.
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When they are satisfied, and the restriction on the licence is lifted, it will be able to scale up deposit taking, lending and begin operating as a fully-fledged bank.
Following launch, 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 £2 million.
Designed to reward loyalty, if an existing saver deposits money for a subsequent fixed term, they will get a better rate than a new customer; while an existing borrower who renews their loan will also get a favourable rate.
“We are very pleased and excited to have successfully completed our Series A funding round, exceeding targets, against such a challenging backdrop [of COVID-19],” said CEO and co-founder Mintoo Bhandari.
“We are truly thankful to our investors who have shown faith in the robustness of our business strategy, the strength of our team, and the clarity of our plans. Looking ahead, 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.
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“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.
“I believe these businesses are likely to be a key enabler and driving force for society’s digital future and renewed prosperity.”
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