Dubai Investments hikes stake in UK’s Monument Bank
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Dubai Investments hikes stake in UK’s Monument Bank to nearly 17%

Dubai Investments hikes stake in UK’s Monument Bank to nearly 17%

The investment group acquired a 9 per cent equity stake in the digital bank earlier this year

Dubai Investments buys additional stake in Monument Bank

Dubai Investments said Wednesday that it had acquired an additional 7.68 per cent stake in Monument Bank, a UK-based digital bank regulated by the Financial Conduct Authority, nearly a year after the group made an initial investment in the neobank.

The investment, which is subject to regulatory approvals, will increase the UAE-based group’s holding in the bank from 9.25 per cent to 16.93 per cent. The value of the investment was not disclosed.

Founded in 2021, Monument Bank is focused on the overlooked ‘mass affluent’ segment in the UK. The neobank provides core banking and other related services and offers smart, efficient and flexible solutions while leveraging innovative technologies to expand globally.

“Monument Bank’s resilience and successful capital raise rounds exemplify their promising growth trajectory, and the bank’s progress in monetising its technology and business service verticals demonstrate its commitment to innovation and customer-centric solutions,” said Khalid bin Kalban, vice chairman and CEO of Dubai Investments.

Bin Kalban said the investment solidifies the group’s presence in the dynamic digital banking landscape and aligns with its vision to foster international collaborations.

Recently, the digital bank closed a Series B funding round that raised more than GBP40m, backed by a combination of existing and new investors.

Since its inception, Monument Bank has raised over GBP103m – further solidifying its strong position for continued growth.

“Our strengthened partnership with Dubai Investments is a meaningful step in advancing our strategic plans, allowing us to leverage technological capabilities, expand operations, and increase influence in international markets,” said Mintoo Bhandari, founder of Monument Bank.

Dubai Investments forays into neobank space

Meanwhile, neobanks have become a part of the mainstream financial system by reshaping retail banking, payment processing, and international wire services.

The digital-native banks have reset the paradigm for the traditional banking industry in terms of customer experience, product innovation, and pricing, driven by evolving consumer demands and supportive regulation of licensing frameworks.

UAE’s Dubai Islamic Bank acquired a 20 per cent stake in Türkiye’s TOM Group of Companies in September, marking the shariah-compliant bank’s entry into the country’s digital banking sector.

The investment gives the banking group a significant minority shareholding in TOM Group – which includes TOM Katılım Bankası – Türkiye’s first licensed digital retail bank; TOM Pay Elektronik Para ve Ödeme Hizmetleri – a licensed e-money company; and TOM Finansman – a licenced financing company specialised in developing innovative digital products.

“By providing seamless integration and easy access, neobanks bridge the gap between the services that traditional banks offer and the evolving expectations of customers in the digital age,” global consultancy firm EY said in a report in November 2022. Dubai Investments, Monument Bank, Digital Bank 

Neobanks in the GCC are forecasted to account for more than $2tn in market size by 2030 at a compound annual growth rate of 53.4 per cent. 

Read: How GCC neobanks are shaping the next banking revolution

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