Manchester-based fintech, Firenze, has today announced the appointment of its new Board, with industry leaders giving their vote of confidence in the firm which launched earlier this year.
Banking heavyweight Paul Pester joins as Chair, while Samantha Bamert and Mike Toole join as Non-Executive Directors.
Firenze, an embedded finance platform, allows wealth managers operating across the UK to offer their customers quick access to liquidity via loans secured against investment pots, with loan sizes starting from £65,000 today and, subject to FCA authorisation, lower this to £25,000 by 2026.
‘Lombard loans’ have typically been reserved for the super wealthy clients of private banks, who often have investments well in excess of £1m. Firenze is helping expand access to the UK’s 13m “mass affluent” customers, by becoming the partner of choice for brokers, wealth managers and investment platforms.
About the appointments
As Chair, Pester brings a wealth of experience from having been the Group CEO at Virgin Money and TSB Bank and been Managing Director at Lloyds Bank and Santander. A consumer champion, Pester has long looked to guide businesses to open financial services and ensure it is accessible and inclusive.
Pester has more recently turned to fintech, chairing the green digital bank, Tandem Bank, setting up and successfully exiting his own fintech, Loop, and co-founding the innovative fintech growth partner, archie. With this, Firenze will capitalise on his extensive expertise to help guide it through the next phase. Pester is also a Non-Executive Director of the National Bank of Bahrain.
Bamert is an experienced director and board level advisor. She brings over 25 years’ diverse finance and fintech experience, having held senior roles at Barclays Investment Bank and Barclays Wealth, before founding and growing the fintech Ask Inclusive Finance, an inclusive SME lender. She is a senior advisor to Fiduciam and Pure Leapfrog, and a Trustee of the non-profit Opportunity International UK.
Toole is an experienced director in the wealth sector, having held senior positions in Baker Tilly (now RSM), KPMG and Skipton Financial Services. In 2014, he co-founded and was Group Chief Operating Officer of Artorius, a wealth manager in Manchester. Since leaving Artorius in 2022, Toole advises several leading businesses in Manchester.
Unlocking Lombard lending – the last tool kept in the private banks armoury
Said to have originated in Florence, with the Medici Bank offering secured, investment backed loans to the Pope, Lombard lending has traditionally been reserved for super wealthy, private banking clients.
Firenze believes the product has a wider application and is on a mission to expand access.
Through its propriety platform, white label product and connected APIs, Firenze offers an embedded solution, becoming the partner of choice and enabling wealth managers, advisors and investment platforms to complete their proposition with cost-efficient Lombard loans, without the need to move custody.
Being able to offer an attractive, simple liquidity solution to clients benefit wealth managers. Lombard lending can also help attract and retain clients, creating a ‘stickiness’ and flexibility, as well as prevent the most valuable clients moving to private banks.
Speaking on his appointment, Paul Pester, said: “Lombard lending is one of the best kept secrets of the super wealthy – enabling quick access to cash without having to sell investments. It’s great to be able to bring this to over 13 million UK consumers who have built-up savings and investments over £50,000 through their advisors.
“With the new Government rumoured to be looking to increase capital gains tax, this innovation by the Firenze team could not have come at a better time.
“The product offers cash without crystalising capital gains tax, allowing investments to continue benefiting from any growth, voting rights or tax wrappers. This innovation can now remove the stress of a home purchase chain or re-invent the bank of mum and dad for millions of hard-working UK savers and families.”
Founder and Chief Executive, David Newman, said: “I’m delighted to announce our new Board – it’s a significant step for Firenze.
“Having Paul, Sam and Mike on board is a real pleasure and a significant vote of confidence in what we’re doing. They bring a wealth of experience and perspectives from across banking, wealth management, funding and are all significant customer champions within heavily regulated industries. It’s this experience we hope to draw upon, and it’s a privilege to have their support – which is already in abundance.
“Broadening access to Lombard lending is one of the most exciting areas of finance to be working on. We not only help consumers access a solution previously kept to the wealthiest in society, but can also help wealth managers and advisors better compete against private banks.
“The response from the market has been incredible with demand far in excess of our most optimistic scenarios. This has led to significant process in our first few months and the addition of this fantastic board will help continue to drive us forward.”
Earlier this year, Firenze closed a successful £750k funding round – one of the largest pre-seed angel raises to close in the past 18 months and one of the largest pre-seed rounds outside of London, with backing from the likes of a16z, Atomico and Lakestar.
To learn more about Firenze and Lombard Lending, you can download our Whitepaper here.