Monument, a new UK digital-first bank, has received an authorisation with restriction banking licence from the Prudential Regulation Authority and the Financial Conduct Authority.

The startup achieved this milestone in just over 18 months, which is believed to be one of the fastest rates of progress for any new bank. It is also in the process of completing a Series A funding round backed by a combination of existing and new investors.

Since inception, Monument has raised circa £20 million in funding, providing sufficient capital and operational resources to complete its build for launch.

The bank, whose executives and board have held senior roles in HSBC, Barclays, McKinsey & Co, UBS, Goldman Sachs, Apollo Global Management, PwC, Coutts and at the UK regulators - will focus exclusively on busy professionals, doctors, lawyers, accountants, entrepreneurs and investors.

A statement explained that securing the banking licence, with restrictions, is a key step in its plans to launch "the bank of choice for the overlooked and underserved market" of 3.5 million mass affluent clients in the UK who have a net worth of between £250,000 and £5 million (excluding main residence). Monument estimates the wealth of this overlooked segment to be as high as £3.5 trillion, including at least £200 billion in liquid savings.

Monument stated that 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. It aims to offer top quartile savings rates and its model is designed to reward loyalty - so if a saver deposits money for a subsequent fixed term, they will get a better rate than a new customer, and a borrower who renews their loan will also get a favourable rate.

Mintoo Bhandari, chief executive and one of the founders of Monument Bank, said: “The speed with which we have been executing our plans and progressing through the regulatory process are a testament to the exceptional quality of our team and the vote of confidence by investors in our strategy, in a world that is otherwise full of challenges.

"We now eagerly look ahead to completing the build of the bank and launching for clients in 2021 - our mission continues to be to combine the capabilities, convenience and efficiencies that modern technology offers with traditional values of trust, security and strength, and to deliver unrivalled service that our valued clients will demand.”

The bank previously explained that it is built on cloud and microservices technology – which enables a plug and play approach to new tech innovations as they are developed and as client requirements evolve.

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