Investor appetite for cash products has remained strong, with data from APRA showing that there is over $2.2 trillion invested in cash across Australia.
Is cash the asset class that has been left behind? Is cash the oil that lubricates the machine? What role will term deposits play in post-retirement member retention and how can cash management be streamlined to facilitate more efficient implementation of instructions? These are the questions facing the asset class today.
Simple changes to the way cash is invested can provide substantially greater returns if you know where to look. Having access and visibility of a wide range of products from different banks is essential to maximising returns for clients. The ability to see what is on offer should therefore be a priority.
Managers tasked with building and protecting wealth for their investors need the tools to ensure they are acting in the best interest of their clients. Off the back of the Royal Commission’s findings, greater scrutiny will be placed on transparency of where and how an individual’s money is invested.
While there have been technological advances in other parts of investment management, cash-management on the other hand has received little attention.
This is where platforms come in. Independent, non-bank platforms are evolving to provide investors with a holistic view of what investments are available in the market. The technology being developed by these platform firms, complement larger corporates and industry funds, giving them the tools to be able to make informed decisions when investing in different asset classes, including cash.
In the past, larger financial institutions that provide services to asset managers have tried to build technology internally to meet all of their clients’ requirements. With the ever-changing demands of clients, this has become unsustainable and costly eating into any profits earnt from investments and resulting in higher fees for servicing and managing investors’ money.
Super fund members who lost money by investing in cash through their super fund providers, will be keeping a close eye on the returns their funds achieve going forward.
With equity and bond markets becoming increasingly volatile with a greater uncertainty of returns, the stability of cash is something which investors will look to in order to safe guard their wealth.
The development of technology by fintech firms over the past few years is something which fund managers and superannuation funds can embrace to help achieve greater returns without taking additional risk for their clients when investing in cash products.
Of all the cash options, term deposits are the most transparent. What you see is what you get. There are no hidden fees and the amount, the term and the return are all laid out on the table before you hit the ‘confirm’ button.
Mark Cochrane, Institutional Relationship Manager at Cashwerkz explains “Technology is evolving and fintech firms have the ability to change how the finance industry operates both in Australia and globally. Technology development, when embraced and utilised, can really help institutional investors focus on selecting investments which benefit their clients. Having independent, neutral, best in class and secure technology to compliment investment decisions, will benefit the future of investing.”
Cashwerkz specialises in one asset class – cash. The technology which has been developed will help investors have real time visibility and transparency of which cash investments are available in the market and at what rates. Cashwerkz is committed to protecting confidential Client information. This is done using a modern and well-maintained technology making security a primary concern in the application. This will ensure larger corporates can leverage but also trust the technology which has been developed.
Cashwerkz overarching priority and focus is on making the investor experience more efficient by providing a platform with the functionality to research and analyse rates, manage the KYC and AML requirements, manage maturities and run detailed reporting all in the one place. One of the significant benefits for investors is the ability to switch banks, at maturity, with the click of a button.
Cashwerkz will never touch, direct or be in control of investor funds – funds are transferred directly from the client’s nominated account directly to the bank and then at maturity is returned to the nominated account. There is no cost to the investor to place a cash investment on the platform. Cashwerkz facilitates the application process with the term deposit. With transparency a high priority, the interest rates displayed on the platform are the rates the investor will receive, with no hidden fees or charges.
To find out more about Cashwerkz, click here.