Katie Horne Director of Bank Relations AkoniHub
Maximising Client Value Through Cash Management Conversations
Imagine strengthening relationships with clients , building trust , and adding value — all through one simple conversation . The best part ? This conversation is relevant to every client , regardless of their age , life stage , or financial situation . Why ? It ’ s about something they all have and need : cash .
For years , cash was overlooked due to ultralow interest rates and a focus on long-term investments . But when the Bank of England raised rates to 5.25 % in 2023 to combat inflation , cash suddenly became a more attractive asset . As inflation cools and rates drop again , with the base rate down to 5 %* and predicted further cuts through 2025 , managing client cash effectively has become more important than ever . Advisers should consider acting now to secure favourable returns for their clients before rates decline further .
Why Cash Management Matters as Rates Fall
There is now a window of opportunity for clients to benefit from current higher rates before they fall . However , many clients still hold cash in accounts offering minimal interest , largely due to inertia or loyalty to their bank . High street banks , for example , continue to offer as little as 0.01 % interest on some accounts , meaning clients are losing purchasing power .
This is where advisers can step in to ensure their clients ’ cash earns the best possible return while there is still an opportunity . Acting now , before rates drop further , positions advisers as proactive , putting clients ’ best interests first .
The Role of Open Banking in Cash Management
Traditionally , managing cash across multiple accounts and banks has been cumbersome . Open Banking technology has simplified this process , allowing advisers to view all their clients ’ cash savings in one place , regardless of the institution . This makes it easier to advise clients on where to position their cash for optimal returns .
Platforms like Akoni , powered by Open Banking , take this a step further . Through Akoni ’ s platform , both advisers and clients can access a range of savings products from around 20 providers with just one application . With client permission , advisers can monitor the entire cash portfolio , including accounts outside the Akoni platform , as long as they ’ re with UK banks . This real-time oversight ensures clients are always earning competitive rates , without the complexity of manually managing multiple accounts .
FSCS Protection for Client Cash
Another key benefit of Akoni ’ s platform is the protection it offers through the Financial Services Compensation Scheme ( FSCS ). The FSCS covers eligible deposits up to £ 85,000 per financial institution . By spreading client cash across multiple UK-regulated banks and building societies , advisers can ensure clients benefit from FSCS protection on their deposits with each institution .
This offers peace of mind — if a bank fails , the FSCS covers up to £ 85,000 of the client ’ s deposits , safeguarding their funds while they continue to earn the best possible returns .
Why You Should Talk to Clients About Cash Now
As interest rates decline , cash management will become increasingly critical . Here are three reasons to start this conversation with your clients today :
1 . Maximising Returns Before Rates Drop
Though rates are expected to fall , we are still in a relatively high-rate environment compared to recent years . Some savings products offer rates of 4.67 %** or more , particularly from challenger banks . Locking in these higher rates on fixed-term deposits now could significantly boost returns for clients over the next few years .
Akoni ’ s platform , for example , gives access to savings products with rates well above those offered by many high street banks . Clients who lock in these competitive rates now can continue to benefit even if the Bank of England reduces the base rate .
2 . Providing Holistic Financial Advice
Clients often treat cash as a ‘ set and forget ’ asset , but in reality , it plays an important role in a balanced financial plan . Whether for emergency savings , short-term goals , or future investment opportunities , having cash readily available — and earning a decent return — offers flexibility and security .
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