The round brings Monument’s total funds raised to around £40m ahead of its launch this summer.
Monument is in the last stages of securing a license with banking regulators having received its “authorisation with restriction” licence last October.
The team are looking to capture a portion of the UK’s growing affluent market with a model that it claims rewards loyalty.
“If an existing saver deposits money for a subsequent fixed term, they will get a better rate than a new customer,” Monument said. “And an existing borrower who renews their loan will also get a favourable rate.”
The challenger will be hoping its top team’s wealth of experience will accelerate the process.Chairman Niall Booker is a former chief executive of The Co-Op Bank and chief executive Mintoo Bhandari spent 11 years as senior partner and managing director of Apollo Global Management.