Without a full understanding of your clients ’ cash holdings , you can ’ t provide comprehensive advice . By integrating cash management into your service , you ensure that every aspect of your clients ’ portfolio is optimised . Additionally , cash on hand during market downturns can help clients seize investment opportunities they might otherwise miss .
3 . Strengthening Client Relationships
While cash management might not be the first thing clients seek out from their adviser , proactively raising this subject adds an unexpected layer of value . Managing cash is often seen as tedious , but clients will appreciate an adviser who ensures their money is working hard , even in a declining rate environment .
Providing cash management advice has an immediate , tangible impact , strengthening client relationships and building greater trust . This can lead to long-term loyalty and more referrals , as clients see you as an adviser who takes care of every aspect of their financial life .
The Importance of Acting Now
The future of interest rates remains uncertain , but it ’ s clear that we are entering a period where rates are likely to decline . Acting now , while rates are still relatively high , will allow your clients to lock in competitive returns before these opportunities fade .
By focusing on cash management today , advisers not only add immediate value but also protect clients from the impact of falling rates . This proactive approach sets advisers apart as those who consider all aspects of their clients ’ financial wellbeing , ensuring that cash is optimised for the best possible outcomes .
Final Thoughts
As rates begin to drop , effective cash management is more important than ever . Advisers have a limited window to help clients secure the best possible returns on their cash . Thanks to innovations like Open Banking and platforms such as Akoni , managing cash is now simpler and more efficient .
By starting this conversation with clients , advisers can help them maximise returns , strengthen relationships , and ensure that cash is working hard for them . As interest rates decline , offering a tailored cash management strategy — protected by FSCS — could be the differentiator that sets your advisory service apart .
FOR MORE INFORMATION ON HOW AKONI CAN HELP YOU WITH YOUR CLIENT CASH , PLEASE VISIT THE WEBSITE .
Disclaimer : The information provided in this article is for professional advisers only and is not intended for use by retail investors . The rates and products mentioned are for illustrative purposes and should not be considered financial advice or a recommendation . While cash deposits are generally considered low risk , returns are dependent on interest rates , which may change . Advisers should perform their own due diligence when recommending financial products or services . Clients ' deposits with UK-regulated banks and building societies are protected by the Financial Services Compensation Scheme ( FSCS ) up to £ 85,000 per institution , subject to eligibility criteria . Please review the relevant product terms for full details .
* Source - https :// www . bankofengland . co . uk / monetary-policy / the-interest-rate-bank-rate ** Rate correct as of 2nd October 2024 .
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