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It is widely known that since the start of the pandemic, there has been an increase in savings deposits globally, but especially within the UK. Much of this behaviour can be attributed to a panic reaction, due to the instability caused by national lockdowns and other imposed COVID restrictions.
In addition to the general increase in savings, the pandemic has also created a new group of savers, mainly from Millennials and Generation Z who have saved on average 30% more during the pandemic.
Although this is brilliant to see, according to Ewan Edwards, Director of Savings at Aldermore, this leaves scope for such groups to ‘fall into the current account savings trap’.
According to MoneyExpert, 1 in 5 savers are leaving their cash in non-interest earning current accounts. Despite the fact that leaving enough cash in a current account is expected to cover the cost of bills and direct debits, many end up neglecting the surplus entirely. This means they are missing out on earning returns and making the most out of their dormant cash. As the pandemic has greatly impacted interest rates, many people still feel unmotivated to move them into medium- high interest-bearing accounts.
However, with inflation at the highest it has been in a decade at 4.2%, what options do savers have? If they choose to keep their extra cash in a 0% current account, they will allow inflation to eat away their spending power. So, finding an alternative use for cash, is most certainly better than doing nothing.
Cash management platforms, like Akoni, can help people take control of their savings and earn more interest.
By the very nature of being a digital platform, Akoni offers a sophisticated fully digital onboarding process. This allows for Akoni’s potential clients to do KYC/KYB within minutes (AML and impersonation risks). Workflow for multi signatory, advisor lead onboarding. There is no evidence of similar capability from other competitors.
Also unique to Akoni, is the level of automated cash management. Akoni's algorithm constantly monitors the cash positions and makes relevant recommendations. This is in contrast to the very linear and unmanaged approach often seen in the market. Effectively, users can manage cash in minutes whenever there is a prompt (e.g. a maturity). This equates to a simple ongoing user experience for retail or small firms. For larger firms managing cash, the time saving can equate to hours or days per month. Contributing to the digitalisation of the cash management platform, Akoni has built a range of smart tools, such as risk controls, liquidity, cash flow planning, cash dashboard, open banking integration, and more. This broad range of features allows the platform to provide personalised service to a varying demographic based on their needs.
So, why should you choose Akoni to help you with your client’s cash decisions?
1) Safe and secure with the FSCS Government deposit guarantee
All deposits are held with each bank providing protection of up to £85,000 per bank, or up to £1 million for Temporary High balances.
2) Diversifying risk (spreading money across savings providers)
With the option to spread cash across several providers on the Akoni Cash Management Platform, you can diversify risk, and increase the chances of positive returns.
3) Increased returns & Better interest rates
In a climate of economic uncertainty, and with interest rates being cut across many providers, it’s not easy to find decent interest rates in a simple way. With Akoni, you can find competitive interest rates to suit your client’s specific needs.
4) Quicker, and hassle-free - no form filling
Akoni Hub provides a hassle-free cash management experience - your clients can onboard and open an account online with no fuss. Clients will only need to complete one AML/KYC process, can switch between providers, and manage their account on the Akoni Cash Management Platform in just a few clicks.
5) White label Adviser portal and tools
You have the flexibility to create a platform that works for you and your clients. Add your branding to showcase who you are through a sleek, professional cash management platform designed with you in mind.
The award-winning Akoni Cash Management Platform is already leading the way in the wealth management sector, and has partnerships with Barclays, Aldermore, Investec, Clydesdale, amongst others. The ability to white label the platform gives financial advisors flexibility to help their clients move cash depending on ever-changing macro and micro environmental factors.
Find out more about Akoni: Akoni is an award-winning UK cash platform, which provides a marketplace to financial advisors and wealth managers through a bespoke white-label offering, or off-the-shelf offering. Akoni uses innovative technology to personalise cash planning solutions for clients, and also provides a full API solution to banks and insurance clients.