The rise of such banks reflects the impact of modern technology and a desire – not just from the younger generation – for more flexible and, hopefully, better service than from traditional models.

UK “neobank” Monument – one of a cluster of tech-driven financial institutions – last week hailed its achievement in reaching £3 billion ($3.87 billion) in client deposits, adding £1 billion in a period of 10 weeks.

The firm, focusing on mass-affluent clients – sometimes a difficult segment for private banks to capture and serve well – said in a statement last week that it has doubled its client base in less than six months. 

“Looking ahead, we’re continuing our mission to create products that help our clients to better manage their wealth, with some exciting launches coming up in the latter half of this year,” Ian Rand, Monument’s CEO, said.

The firm offers savings, fixed-term deposits and notice accounts, operating via live chat functions, audio and video calls. Monument said its app is also the first in the UK market to offer “co-browsing,” allowing clients to share their screen with the UK-based client servicing team. (We profiled the bank here.)

The firm specialises in catering for those wanting to finance buy-to-let residential/commercial investments and who own between £500,000 ($648,385) and £50 million-worth of property each. Getting its Financial Conduct Authority clearance in November 2021, Monument has launched a range of services since then. In January this year, Dubai Investments PJSC, the investment company listed on the Dubai Financial Market, bought a 9 per cent equity stake in Monument Bank.

The “neo-bank” or “challenger bank” segment has seen a few new entrants, with some, such as Revolut or Starling going after the retail market. Monument is more of a mass-affluent shop. Another in the UK is Pennyworth Financial, which also operates via apps.

This publication has written about the challenges of serving the mass-affluent segment well, and how this fits into private banking strategy.