Digital-first bank Monument has received its banking licence from UK regulatory authorities, allowing it to begin serving mass affluent clients in the country.

The bank, which has also exceeded its Series A funding target, having raised £20m to date, is specifically targeting mass affluent clients in the UK – an area it believes is significantly underserved by current challenger banks.

Covering entrepreneurs, professionals, accountants, investors, doctors and lawyers, mass affluent clients have a net worth of between £250,000 and £5m, excluding their main residence.

It is thought that there are 3.5 million such people in the UK, with a combined wealth that may reach £3.5tn and liquid savings of at least £200bn.

Monument: Digital bank taps underserved market as digitisation soars

The launch of Monument comes as the demand for digital alternatives to traditional services has soared amid the Coronavirus pandemic, making the market potential of a digital bank serving this market significant.

Set for launch in early 2021, it promises “market leading, top quartile savings rates” and rewards for customer loyalty, with better savings or loan rates offered for those already with the bank.

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By GlobalData

It will also offer a 100% digital journey for property investment and buy-to-let lending of up to £2m – something it claims is unique to Monument.

“We are delighted that we have received our banking licence and are incredibly excited about delivering the exceptional levels of client service that the mass affluent deserve and which has been lacking from existing premier and private banks,” said Mintoo Bhandari, CEO and co-founder of Monument Bank.

“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.”

Read more: Alpian nets $12.4m in Series A funding for “ground-breaking” digital bank