Flagstone Investment Management is pledging to shake up the £2.1 trillion cash deposit market with a new online platform that is allowing wealth managers, charities, corporates and high net worth individuals to increase their interest income by providing instant access to the best rates on hundreds of cash deposit accounts without having to go through the time-consuming process of applying to each bank individually.
The service is set to revolutionise the cash management space by offering clients the ability to efficiently access the rates of a wide range of leading onshore and offshore banks, with a combination of instant access, notice and term deposit accounts available in multiple currencies all on the one platform.
Flagstone’s platform frees users from having to complete new documentation every time they want to move their money between banks, allowing them to move quickly from one account to another. This makes it much easier to manage and diversify their cash exposure while ensuring it continues to meet specific return, risk and liquidity requirements.
Flagstone has also developed a proprietary risk methodology, which is consistently applied to each bank on the platform in a transparent fashion so that its clients can easily assess and compare the relative risk and return of any deposit which is a significant advantage over the one dimensional information provided by the traditional deposit best buy table. In addition, users can access a personalised notification system, which automatically alerts them to the availability of new and attractive deposit rates, as well as a range of risk indicators providing up-to-date information on the credit strength of their bank counterparties.
Andrew Thatcher, Managing Partner at Flagstone, said: “The beauty of what we offer lies in its simplicity. Our service enables users to trade electronically, accessing deposit rates across a host of major banks and to reduce risk by easily diversifying cash deposits between many different counterparties. All reporting is customised and, crucially, users only need to sign one agreement with us in order to access our entire range of cash deposits thereby significantly reducing their administration burden.
“Wealth managers have tried to create similar services in the past, but none have been able to achieve the scale of banks and market leading deposit rates that we have. This, together with our technology platform, is what makes us unique in the market.
“With around £2 trillion of cash in the UK – much of it earning significantly less than market leading rates – we believe a step-change is needed in the way cash is managed. Quite simply, our technology platform allows our clients to maximise the interest paid on their cash while simultaneously managing risk. We believe that we offer a compelling solution in a world in which charities, corporates and high net worth individuals want a secure, efficient technology solution to manage their cash deposits.”
Flagstone was established by a team that includes former Principal at GLG Partners and Man Group, Andrew Thatcher, ex-Morgan Stanley investment banker and successful technology entrepreneur, Simon Merchant and ex-Group CFO of Virgin Group, Mark Poole.