Dubai – Mubasher: Dubai Investments has acquired a 9% stake in Monument Bank Limited, a digital bank located in the UK and regulated by the UK’s Financial Conduct Authority and the Prudential Regulation Authority.
The equity acquisition in Monument Bank is seen as a unique opportunity for Dubai Investments to foray into the digital banking space in one of the most advanced and regulated markets at an early stage.
The UAE firm’s Vice Chairman and CEO, Khalid bin Kalban, commented: “The accelerated global shift to digital banking has been very positive for neobanks and the growth has been fueled by waves of customers who have embraced digital banking’s expanded product suite.”
Bin Kalban added: “With Monument Bank combining traditional and established banking products with innovative solutions, the group is looking forward to be a part of the evolving and the continued growth phase of digital banks while expanding horizons and diversifying strategically.”
The UK-based bank is currently focusing on launching a more diverse suite of products and services to help make mass affluent lives easier, whether in the UK or globally.
Meanwhile, the CEO of Monument Bank, Ian Rand, said: “Monument Bank is uniquely positioned as the only UK bank focused exclusively on the mass-affluent segment. We are already supporting thousands of customers with our deposit products and have lent nearly GBP 100 million in our first year of operation.”
As for the UAE company’s takeover transaction, Rand commented: “With this investment and partnership with Dubai Investments, we will accelerate the scale-up of our UK business, launching innovative solutions to our target segment and growing our market share, whilst also leveraging our best-in-class technology with partners and clients around the world.”
It is worth noting that Alpen Capital (ME) Limited, a financial advisory firm in Dubai, acted as the advisor to the equity acquisition process.
In the first nine months (9M) of 202, Dubai Investments recorded net profits to the owners worth AED 1.48 billion, marking an annual leap of 227% from AED 455.60 million.
The investment company’s total income grew to AED 3.27 billion in 9M-22 from AED 2.56 billion in 9M-21.