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How a Cash Management Service helps Financial Advisers

by Insignis Cash Solutions in Industry Perspective

In the last few months, we have written about the numerous benefits that a cash management service provides to the Clients of a Financial Adviser. In this article, we explore the three main reasons why a cash management service helps Financial Advisers themselves grow and improve their business.

There are 3 main areas of benefit to a Financial Adviser:

    The Client Service Proposition

Having a holistic view of your clients’ full wealth is key to financial planning. Cash is often the asset that goes unseen by the Adviser simply because historically there has been no easy way to put it to work. A cash management service breaks down the historical boundaries between the Adviser business and the Banking industry.

Cash platforms offer a single signature sign up to access multiple banks and their savings services. The Insignis service enables individuals, companies, charities and trusts to earn a competitive return on their savings within their liquidity requirements. Cash can be distributed in £85,000 tranches, and £170,000 for joint accounts, per bank to maximise FSCS protection. It’s straightforward to set up and you can then view the cash portfolio in one place meaning you always have all the information to advise your clients. Insignis has a dedicated account management team focusing on providing a personalised service and an exceptional client experience.

Every client using the Insignis Cash Platform gets a named Account Manager to assist them with queries and guide them through the process. Using a cash platform can not only enhance your relationship with the client by offering a service for every aspect of their finances but it also means you have total visibility of your clients’ portfolios, enabling you to provide fully informed advice.

Business Development

A cash management service is frequently used as a prospecting tool to grow and build your business.

Many of our Advisers work with professional service firms such as solicitors or accountants to prospect new clients. At the time of introduction, these potential clients are most frequently in cash, and we’ve seen particular applicability in cases such as Trusts, Estate Planning, Power of Attorney, Court of Protection and Business sales. In these situations, there is almost always a significant amount of cash in need of a short-term home whilst longer term asset allocations are decided.

Having a cash service in place enables the Adviser to offer an immediate solution as well as the full suite of longer-term investments. Professional services firms want to see evidence that you, as their chosen financial Advice partner, are focused on providing a range of solutions for their clients. It is also likely that, after a business sale or inheritance process, the client may not be immediately focused on long term asset allocation!

At Insignis, we encourage the use of the cash management service to strengthen and improve your professional connections and we do all we can to support you in this. We have a range of high-quality materials to help introduce and explain the service and we also frequently present alongside our Adviser partners to Solicitors and Accountants to encourage them to adopt a cash management service in partnership with their Financial Advisers. By engaging your professional connections, you solve a problem for them which in turn opens numerous doors for you and your business.

Protecting your Client base from the Competition

Enhancing the client service proposition is the key motivator for providing a cash management service, but there is also an important defensive motivation.

Life liquidity events such as a business sale, an inheritance sum or an asset disposal, often result in a significant cash injection. As an Adviser, finding a home for this cash in the short-term can be challenging. On the one hand, it’s important to make sure your clients’ cash is protected. On the other, any major cash deposit into a private or commercial bank will undoubtedly result in numerous calls and letters from the respective bank’s wealth management arm to poach the client.

This is where a cash management solution comes in. Not only do we provide access to multiple banks so that clients can diversify their cash holdings, we also have agreements in place with our banks to ensure they cannot cross-sell to your client. Over the past year we’ve seen several new cash management services come to market, all launched by big wealth managers or fund supermarkets who have recognised the opportunity cash presents to prospect new clients and then cross-sell.

To compete, it is critical you have a solution in place. A fully independent cash management platform like Insignis complements the service you already offer, protecting and enhancing your relationships with clients by securing their cash to earn a competitive return and better protection.

Contact us today on 01223 200 674 to find out more about how a cash management service can benefit your clients, protect your client base and prospect new business.  

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