How Cash Management Can Grow Your Business

Jan 14th 2019

Insignis Cash works with Financial Advisors all over the UK to offer a digital cash management solution.  We have presented and proven the benefits of a cash solution with hundreds of advisors.

These discussions have led to the identification of three key themes of usage of a cash product.

1. A Client Service Proposition

Clients have traditionally segregated their banking from their financial advice.  Having a cash product gives the advisor the ability to incorporate cash deposits into a holistic overview of clients’ portfolios and allows an advisor to see the ‘whole of the moon’.  This in turn gives our advisor partners a clearer picture of the appropriate advice on overall asset allocation.

Many of our advisor partners are now incorporating the cash proposition into their annual review processes and their client service descriptions or propositions. Adding material interest income to a client’s cash position can be a great part of the overall proposition discussion.

For example, a recent client had sold a business and was unsure what to do with the proceeds. Her advisor suggested she open an account with Insignis to hold the funds in cash, earning interest and fully eligible for FSCS protection, whilst they decided how to distribute her funds long-term. Six months later, a percentage of the funds were withdrawn from the Insignis service and distributed across different asset classes. The cash set aside to cover the tax liability has been placed with Insignis until January 2020 to enhance the return and security.

The use of the Insignis service meant the advisor and the client could take their time deciding on asset allocation in the knowledge that the funds were increasing in value and being held under FSCS.

“With the increased attention that cash management is receiving in the current market, it’s the next logical step in a firm’s armory to help clients. Don’t let cash be someone else’s door opener.”

2. Cash as a Business Development Tool

Not only does a cash management platform give our advisors full visibility on existing clients’ portfolios, it also gives them the opportunity to prospect new clients.

This can start from an existing client base but more excitingly, many of our advisor partners have worked with their own professional partner firms, such as accountants and solicitors to prospect new clients.

Most client scenarios that solicitors and accountants deal with start in cash; powers of attorney, inheritance cases, tax bills, trusts and divorce cases to name a few. These cases can often be complicated, and it can take months to open a single bank account to host the funds. A Cash Management Product partner has direct lines into banks meaning that any complicated cases can be discussed, and bespoke solutions offered.

If an advisor can offer a straightforward solution to problems your partners so often encounter, it builds a strong relationship and also gives you visibility on clients that may be in need of a financial advisor. Insignis commits never to approach your professional partners directly and instead works with you to provide a product that enhances your working relationships and brings you new clients.

3. Protecting Clients from Competitors

Finally, our advisor partners use cash to protect existing relationships with their clients. This protects the advisor from client contact from either a bank or a competitor. If a large deposit hits your client’s current account, it is highly likely that they will then be contacted by the bank.  Also, with many nationals such as Hargreaves Lansdown building in house cash propositions, the timing could not be more pertinent.

Don’t let cash be someone else’s door opener. Insignis only deals with cash products and therefore can never cross-sell to your clients. A product such as Insignis means there is never a scenario where a large amount of your clients’ cash ends up with a commercial bank and the client is approached by the wealth management arm of the given institution.