Former TSB boss Pester to chair wealth start-up Firenze

Paul Pester, the former boss of TSB, is to chair a recently launched fintech which offers customers loans secured against their investment pots.

Sky News has learnt that Mr Pester, who has backed a string of financial services companies since leaving TSB in 2018, is to become chairman of Firenze, a so-called embedded finance platform.

Firenze offers loans starting from £65,000 and, subject to the approval of the City watchdog, will reduce that minimum level to £25,000 from next year.

The company, which launched earlier this year, will also announce the appointments of Samantha Bamert, a former Barclays executive, and Mike Toole, whose previous employers include KPMG, as non-executive directors.

Firenze raised a £750,000 pre-seed funding round to support its launch, with the company now seeking to tap demand for so-called 'Lombard loans' among mass-affluent customers.

Among its backers were funds affiliated to tech investment giants Andreessen Horowitz, Atomico and Lakestar.

Lombard lending is said to have originated in Florence - or Firenze in Italian - with the Medici Bank offering secured, investment-backed loans to the Pope.

It has, however, been traditionally reserved for high net worth private banking clients.

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Based in Manchester, Firenze wants to partner with enabling wealth managers, advisors and investment platforms to provide Lombard loans as part of their proposition to customers.

"Lombard lending is one of the best kept secrets of the super wealthy - enabling quick access to cash without having to sell investments," Mr Pester said.

"It's great to be able to bring this to over 13m 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 and can continue to benefit from any growth in their investments."

Mr Pester, a former executive at Virgin Money, also chairs Tandem Bank.