Fintech firm Firenze has entered into a strategic partnership with Monument Bank to expand its Lombard lending access to wealth management clients.

Monument has committed a £160m funding line to Firenze, seeking to enable the fintech to scale its Lombard loan offering for wealth management firms and strengthen the bank’s position in mass-affluent lending.

The organisations stated that this was the first proposition that broadens access to Lombard lending and democratised what has “typically been available only in private banks”.

The structure prevents the need to change custody arrangements for the client’s investment portfolio and the collateral provided is portfolios of liquid securities with daily mark to market.

Firenze was advised on the partnership transaction by Addleshaw Goddard, while Monument was advised by CMS.

Both organisations believed that the initial £160m facility was “just the beginning” of a long-term collaboration that will continue to scale.

“This partnership made sense for numerous reasons,” said Firenze chief executive officer, David Newman.

“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.”

Monument Bank chief commercial officer, Wasim Khouri, commented: “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.”

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