Former Merrill men launch cash management startup
13 June 2016 | 7114 views | 2
Two former Merrill Lynch directors have launched a fintech startup that aims to revolutionise the way high net worth clients manage their cash deposits.
The Insignis Digital Banking Network will enable clients to deposit cash, starting from £100,000, into a hub account provided by Barclays, held in their own name, from where it is electronically distributed to bank accounts and savings products that give the best returns. Clients’ deposits receive FSCS protection up to £75,000 per person, per authorised bank.
The company, set up by former Merrill bankers Paul Richardson and Giles Hutson, aims to remove the hassle faced by high net worth individuals, wealth managers, companies, charities and local authorities in finding, opening and monitoring multiple savings accounts. It says the platform is already handling £60 million of client funds after a stealth launch four months ago.
Treating cash as an actively managed asset class, the digital dashboard enables users to check balances, make deposits and request withdrawals from a broad range of money-growing bolt-holes, from instant access accounts to long term savings products at ten banks that have already signed up with the project.
Paul Richards, a former MD of BAML in the Emea and chairman of Insignis comments: "Over nine million individuals hold between £50,000 and £5 million in liquid assets, and corporate and charity cash deposits are at record levels. However, with low interest rates and the tedious process of moving cash between accounts, increasing their return on those assets has been complex and time consuming. That has now changed. Insignis provides a means for savers and investors to freely deposit and move cash between accounts, taking advantage of the best rates available and dramatically increasing their return."