Technology provider FNZ has invested in fintech startup Bondsmith, a newly launched firm which has set out to make active cash management more accessible.
As part of the investment, FNZ will offer Bondsmith’s solutions to its platform clients which include Embark Advance, Aviva, Abrdn and James Hay.
The solution is designed to allow savers to access more competitive interest rates and view all their cash savings in one place, while taking advantage of investment and pension tax wrappers.
For advisers, the integration will negate the need to use a separate cash management platform by embedding the same functionality into their advised platform.
Bondsmith, founded in 2021, delivers this solution in partnership with a panel of banks including Investec and Cater Allen. It operates as an electronic money institution in the UK.
“Generally, cash that is not actively managed results in savers seeing negative returns, as interest gains are offset by fees,” said FNZ’s group chief strategy officer, Din Mustaffa.
“The partnership with Bondsmith will allow FNZ’s customers to offer their clients a new asset class, make active cash management more accessible, provide greater opportunity for competitive returns and allow for more holistic financial planning.
“This will help savers get the most out of their cash, which is particularly important at a time when household finances are being squeezed and every basis point counts.”
Bondsmith’s boss Michael Doyle added that as the UK’s base rate continues to rise, and as the Financial Conduct Authority readies to enforce its consumer duty in April 2023, it is “more important than ever” for the wealth industry to improve consumer outcomes.
“Actively managing cash, which makes up 5-10 per cent of most portfolios, and ensuring the consumer benefits, is a great way to achieve this,” he said.
FNZ serves some 8,000 wealth management firms across the world.
In May, the firm appointed former James Hay boss Alastair Conway as its chief executive office for the UK and South Africa.
FNZ is currently readying to launch a version of its platform for Conway’s old employer, James Hay, which is set to go live before the end of this year.
This year, the provider also made a strategic investment in data and analytics firm Gist, after backing Zurich-based firm specialising in client onboarding Appway.
ruby.hinchliffe@ft.com
