Dubai and other Emirates have vowed to drive their economic structure away from refineries and focus on technology, tourism, and other sustainable projects. Ever since then, Dubai has been seeking to invest innumerable wealth for global expansion. They have set an agenda to double their economy in the next decade.
Why Dubai Investments Acquires Monument Bank Stakes?
As a part of their agenda, Dubai Investments PJSC, the leading investment company in the Dubai financial market, has acquired a 9% equity stake in the UK- based digital Monument bank, which is regulated by the Financial Conduct Authority (UK) and the Prudential Regulation Authority (UK) This transaction is considered a part of Dubai’s plan to diversify its economy into a booming financial technology space.
The conduct of smooth transactions between both companies was achieved with the help of Alpen Capital, who served as the advisor to the transaction. Alpen Capital is a financial advisory firm based in Dubai
For those who are unaware, Monument bank was established in 2021 and focuses on the “mass affluent of the UK’s society. The primary objective of the bank is to provide core banking services and financial-related services such as supporting clients in dealing with complex transactions and helping them to apply smart, efficient, and flexible transactions as well as acknowledge the customers about the digital possibilities to expand globally.
The bank currently aims to provide a broader suite of products and services that can ease the lives of UK-based customers as well as global customers. The company believes that advancing technology capabilities can underpin both global and home-based customers.
In response to the acquisition, Monument Bank CEO, Ian Rand released a statement. According to the CEO of Monument Bank, this new partnership with the Dubai Investment Group will help to accelerate the business by launching “innovative solutions” to the growing market and scaling up the market share. He added that the company has already lent around £100m during the first year of the operation, along with the deposit products.
He concluded his statement by addressing that the collaboration with Dubai Investments will help them attract more partners and clients from all over the world, as well as implement first-class technology.
The CEO and Vice President of the Dubai Investment Group, Khalid Bin Kalban commented that their investment in the UK-based Monument bank will enable both parties to enhance their Digital banking activities and sweeps into one of the most advanced and regulated markets at an early stage.
The CEO believes that digital banking has been very promising as the digital banking sector is being fueled with countless customers. Moreover, with these investment plans, the Dubai firm plans to engage with the evolving growth phase of digital plans by providing innovative solutions along with traditional and established banking services to its diversified customers.
With these investment boosts to the Monument Bank, the bank will be able to compete with global competitors as they enhance the user services, such as implementing a broader range of products and services to its client base. It is obvious that this deal between both organizations will help to boost their volume, due to the global shift of customers to digital banking such as cashless payments and online payments in the wake of Covid 19.
Mintoo Bhandari, the head of institutional Relationships and Founder of Monument, is pleased with the acquisition of the Monument. Dubai Investment, in the role of a strategic investor, Mr. Bhandari is looking forward to building a deep relationship with the investor over the coming years.
He said that “ We believe that we are uniquely positioned to take advantage of the trends and opportunities that continue to emerge in our home market and believe that our partners at Dubai Investments can help us advance our strategic plans, leveraging our technological capabilities, to extend our operations and spheres of influence in other markets around the world”.
The Investment Corporation of Dubai, which holds a stake in Dubai investments, said that the level of business activities has increased as well as helped the emirate to bounce back from the burdens of Covid19. Mohammed Al Shaibani, the managing director of the Investment Corporation of Dubai said that the step taken by its subsidiary companies during the pandemic such as protecting the customer’s business, adapting their models, and enhancing cost-effectiveness methods have helped the company to gain profits in the later stages.
The Investment Corporation of Dubai owns stakes in some of the well-known and performing business companies in Dubai. They hold a stake in Emirate Airlines, Emirates NBD – Dubai’s Biggest Bank and Emirate National Oil Corporation, and many more.
The concept of digital banking is also gaining popularity in UAE due to the rise of financial technology companies. In this way, London-based Monument Bank will be able to lure customers at a mammoth range from the UAE.
As the world moved towards digital transactions, many financial institutions have launched Neobanks to provide customers with seamless banking transactions in one go.