Imagine if you could create a deeper connection with your clients, build more trusting relationships and add more value, all with just one simple conversation?
Well, the good news is you can. The even better news is you can have this conversation with every single client on your books, no matter their age, life stage or income level.
That’s because it’s about something they all have and need. Cash.
While the perennially low interest rate environment of the last 10-plus years has made holding cash pretty unappealing, the fact is it’s still an asset investors like - and should have - in their armoury. The situation is starting to change. We’re now in a rising interest rate environment with high inflation, which means getting the best rates on cash is more important than ever.
But advisers often still fail to broach the topic of cash with clients.
Often the focus is on investment portfolios and pension planning. As it should be. But where clients’ cash is sitting and how hard it’s working shouldn’t play second fiddle. It’s just as important.
Today, thanks to Open Banking, managing your clients’ cash deposits has never been easier.
This relatively new technology lets you have a single view of all your clients’ cash savings, from multiple different banks, in one place.
The process is simplified further by cash management platforms, like Akoni, which are powered by Open Banking.
With one application our platform allows you and your clients to seamlessly deposit into a range of savings products from 20 providers and, with your client’s permission, monitor all of their cash savings, whether held via the Akoni hub platform or not, providing they are held with UK banks..
Why clients’ cash positions matter
While technology has made managing your clients’ cash simple, the question remains: why should you bother? Can having control over their cash position really make a difference to your business?
Here are three good reasons:
- So you can provide holistic advice
Yes, most clients will hold cash for a rainy day or in case of an emergency but many will be stashing it away in order to make opportunistic purchases. The liquidity of cash means you can jump on an investment opportunity when the market falls.
But only if you know about your clients’ cash holdings.
If you don’t have a full picture of their financial situation, you can’t offer comprehensive advice.
With stockmarket turbulence currently creating plenty of attractive buying opportunities, it’s more important than ever for advisers to be ready and waiting to capitalise on behalf of their clients.
- To make sure they’re earning as much interest as possible
Yes, interest rates are low, and have been for years, but they’re rising rapidly and there’s now plenty of competition among providers.
Despite this, many people leave their cash languishing in high street bank accounts, earning next to nothing. They do this for a host of reasons including inertia, misplaced loyalty, or the mistaken belief rates are dire across the board.
But the truth is that some of the newer, challenger banks and building societies are paying pretty decent rates. For example, you can now earn more than 2% on two-year fixed term deposits from providers on the Akoni Hub platform.
Compare that to the measly 0.01% on offer from some of the high street providers and it’s easy to see just how much value you could add by helping your clients shop around for a home for their cash.
- To enrich your client relationships
Your clients probably didn’t first come to you for advice on where to hold their cash, but if you initiate a conversation about finding the most competitive deals, and assure them they’ll always be earning the best possible rate, they’ll be eternally grateful.
They’ll view it as an ‘added value’ service. A task they can tick off their to do list. This will result in stronger client relationships and the possibility of more referrals.
Are you ready to try the award-winning Akoni platform?
Sign up now and see how easy it is to manage your clients’ cash.
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