Paul Emery, Head of Client Banking at St. James’s Place, has commented on the recent announcement that they are to expand their offering of the Flagstone online cash deposit platform to clients with minimum savings of GBP50,000.
Emery says: “We see the choice of how much to hold in cash savings and how to get the optimal risk/return on this asset as a fundamental part of the financial planning process. Cash is simply another asset class in this respect and an area where we, as wealth managers, are seeing high levels of growth. We are delighted to be able to offer our clients a brilliant tech-enabled solution to help them manage their cash.”
Emery doesn’t see a trend towards cash as such, commenting that the overall demand for, and volume of, cash savings in the UK is remarkably stable through the interest rate cycle. The new offering is more about filling out the service offering, to include a cash solution, he says.
London-based fintech company Flagstone has worked with SJP since 2017. Emery says: “Flagstone makes the process of tracking savings rates, and opening and switching bank accounts, incredibly easy. With around 30 banks on their platform, clients have a wide choice of account types and market-leading rates that they can select.
“It eliminates the time and administrative hassle of monitoring many different banks and opening, closing, tracking or switching accounts. It makes it simple to get the best interest rates and diversify your bank exposure if you have more than the FSCS limits. We believe that if platforms can integrate themselves into the offerings of wealth managers, banks and comparison sites, they will really take off and you will find wealth managers increasingly looking to place that cash on behalf of their client.”
Appetite for a cash solution comes from a wide variety of clients, Emergy says. “Business and trust/charity clients find it a particularly useful way to operate multiple savings accounts and spread their liquidity profile. Many of our clients with a sudden cash windfall, for example from a business sale or bonus/dividends, also want to take the time to consider their financial planning options, and find it a good way to reduce their exposure to a single bank whilst they do this. Some clients simply choose to hold more than GBP50,000 in ‘emergency’ cash funds and again find it a beneficial solution.”