Credit teams fall back on spreadsheets – adding operational risk, key-person risk and credit risk to every decision.
Decisions that should take minutes take hours or even days, even though most of them are rules-based. Banks miss out on growing the book as a result.
Lombard lending can be highly capital-efficient under CRR – but only with robust, well-monitored processes and accurate calculations. Without them, banks tie up more capital than they need to.
Advisers get decisions in minutes, documents are generated automatically, and underwriting is digital from start to finish – without compromising on risk management.
Lend against clients’ full set of investments – even if not managed in-house.
Meet more clients’ liquidity needs, grow AuM, and scale lending revenue – without scaling operational risk alongside it.
Get your Lombard book down towards 0% RWA, lift RoE, and free up capital for the things that matter most to you.
Monitoring runs continuously, margin calls are automated, LTVs adjust dynamically, and risk is flagged before it becomes a problem.
Sophisticated tech proactively identifies nascent risk issues and optimisation opportunities, with human assurance gates.
Lombard lending is a facility secured on a borrower’s investments. It is sometimes referred to as investment-backed lending, portfolio lending, margin lending, or securities-based lending.
It can offer significant advantages to a borrower in terms of speed and cost, versus other forms of lending. For a bank, it can be highly capital-efficient and strengthen the relationship with a client.
Many in-house Lombard operations - even at established private banks - still carry significant manual overhead in credit decisions, monitoring and capital calculations.
Firenze plugs in alongside your existing credit policy and processes, automating the parts that create operational and key-person risk, surfacing real-time RWA analysis, plus potentially enabling you to extend lending to assets you don't currently custody.
The starting question isn't whether you have Lombard lending - it's whether your current infrastructure is helping you grow it as efficiently and capital-effectively as it could.
Yes, and it's the fastest one.
Firenze provides the full operational infrastructure - origination, underwriting, monitoring, documentation, and regulatory capital calculations - so your team focuses on credit policy and client relationships rather than building and maintaining systems.
Several of our bank partners are using Firenze to launch a Lombard proposition that would otherwise have taken years to develop in-house.
It means your bank can offer a Lombard facility secured against investments held at a third-party custodian – an IFA platform, a D2C investment account, another wealth manager.
Firenze takes effective legal security over those assets and maintains real-time monitoring of the collateral position through direct data feeds. From a regulatory capital perspective, the structure is designed to meet CRR requirements for financial collateral treatment, so you don’t sacrifice the capital efficiency of your in-house book.
Firenze’s platform is configurable to your credit policy – LTV schedules, concentration limits, eligible collateral – rather than imposing a one-size-fits-all approach. Similarly, on the capital side, the regulatory capital modules (FCSM, FCCM, IRB) are customisable to your own methodology.
On the other hand, a bank can choose to use our own in-house policies if they prefer.
It varies by scope – a bank adding Firenze to an existing Lombard book typically goes live faster than one launching a new proposition from scratch – but we’re measuring in months, not years.
The largest variable is usually data integration: connecting your systems (and any third-party feeds) to the Firenze platform.
