Wealth management for high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) includes expert services designed to protect and grow the wealth of those with significant investable assets. However, until recently, many wealth managers have focused mainly on longer-term investment strategies.
This short blog post explores the case for cash and how careful cash management can effectively complement wealth management for HNWIs and UHNWIs. Read on to discover:
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. We recommend consulting a qualified financial adviser or professional for guidance tailored to your individual circumstances. Insignis does not offer personalised financial advice, and all decisions regarding your finances should be made with careful consideration of your specific needs and goals.
Wealth management is an umbrella term for personalised financial services designed to help individuals, typically those with significant income, assets, or both, grow, protect, and pass on their wealth. It typically incorporates investment management, financial planning, estate planning, tax strategy, and other financial advisory services.
Wealth management is about creating a holistic, customised strategy for achieving long-term financial goals while optimising tax efficiency and mitigating risks.
Wealth managers provide expert input into financial decision-making to maximise returns, ensure peace of mind, and help their clients avoid costly mistakes.
While many wealth managers have a broad understanding of financial planning, the markets, and the challenges faced by HNWIs, they work in tandem with subject matter experts (including tax professionals, estate planners, and legal advisers) to ensure all areas of their clients’ financial lives are aligned.
If you have substantial assets, a wealth manager can be a trusted long-term adviser, coordinating various financial activities such as asset allocation, retirement planning, succession planning, and philanthropic endeavours.
Most wealth management services involve a combination of the following:
This Capgemini World Wealth Report notes that both HNWI wealth and population numbers rose in 2023.
This has led to an explosion in demand for wealth management services, with several exciting growth market segments emerging (including women, millennials, and international clients, notably in the Middle East).
The needs of these clients are also becoming more complex. According to McKinsey, this is partly due to a greater reliance on personal savings for retirement than prior generations and the uptick in sophisticated financial products designed to maximise wealth accumulation and preservation.
In more stable markets, wealth managers have traditionally focused on long-term investment strategies, particularly for later-life planning, such as pensions. But with rising interest in liquidity and flexibility, cash is becoming a more strategic asset for high-net-worth individuals (HNWIs).
Cash can present both challenges and opportunities in the short- and medium-term. A dedicated cash management service can help unlock the following benefits:
A platform like Insignis can offer a streamlined solution. It allows clients to consolidate holdings, improve returns, and enjoy enhanced control over their cash. And when paired with a SIPP (with whom we partner), it becomes even more powerful: enabling clients to manage pension cash with the same agility and oversight, while staying aligned with long-term retirement goals.
Here’s how it works.
First, it’s important to note that our platform doesn’t compete with wealth managers. Instead, we aim to fit neatly within the wealth management ecosystem and complement their services by:
Let’s explore each of these features in a little more detail:
Wealth managers try to reduce risk and guard against market volatility by investing their clients' money in diverse investment vehicles (stocks, funds, bonds, and real estate). The idea is simple: different assets perform differently under market conditions, providing variable risk levels and returns.
However, while cash offers capital protection, the value can be eroded by inflation (as we saw with the recent cost of living crisis. What’s more, while uncommon, banks can collapse at short notice due to bank runs or sudden depreciation of assets, so holding your money in a single bank account can pose risks.
In the UK, the Financial Services Compensation Scheme (FSCS) only covers funds up to £120,000 per eligible person per bank. An HNWI’s cash holdings may not be fully protected if they are not diversified across several banks (each with its distinct banking licence, as banks in the same group are considered the same for FSCS protection).
With this in mind, Insignis helps wealth managers mitigate the risk of significant loss. They can use the platform to spread client cash across distinct accounts, keeping the balance below the £120,000 threshold in each.
When cash is tied up in market-based investments, accessing funds can be complicated by the fact that you’ll need to sell assets to realise cash. This may take some time, depending on the terms of certain products. Furthermore, you may need to sell when market conditions are unfavourable, which could result in a loss on your initial investment.
In wealth management, a balance must be struck between long-term prosperity and short- to medium-term liquidity. For instance, if a life event throws a curveball (e.g., the need to relocate) or a business opportunity arises, easy access to cash can make all the difference.
Our award-winning platform gives you access to over 4,500 savings products from 55+ banks and building societies. From Easy Access to 5-year Fixed Term products, you can choose the perfect savings accounts for your current goals, such as maximising returns on the cash proceeds from a significant liquidity event, like the sale of a house or an inheritance.
Saving money across multiple bank accounts can be a savvy way to spread risk while pursuing various financial goals, but it can also be an administrative headache. If each account is with a separate bank in a distinct banking group, it has its own logins, dashboards, and reports, making it challenging to get an at-a-glance view of the overall balance and performance.
Using Insignis, you can cure this headache. Wealth managers can monitor and control client savings with a single login, eliminating the need for endless paperwork.
Capgemini’s top wealth management trends 2025 cites a “seamless digital experience” as one of the top 10 emerging expectations among clients.
Siloed systems can scatter data, making it difficult to digest, and leading HNWIs to demand a more customer-centric approach. Our platform is designed to meet those expectations, offering a comprehensive view of cash assets in a sleek, intuitive dashboard.
Learn how Insignis can complement and enhance wealth management here.
8 Devonshire Square, London EC2M 4YJ
St John’s Innovation Centre, Cowley Rd, Milton, Cambridge CB4 0WS
+44 (0)1223 200 674
