Flourish – a company that provides innovative access to financial products that help registered investment advisors (RIAs) secure the financial futures of clients – announced record growth alongside other milestones including enhancements to its product suite and integration partner ecosystem. And the company now boasts over $2 billion in assets under custody (AUC) and over 550 RIA firms on the platform.
In tandem with rising rates, Flourish Cash – Flourish’s cash management solution built explicitly for RIAs that offer clients competitive interest rates and elevated FDIC insurance through its Program Banks – has fueled Flourish’s growth over the past several quarters. Over the last 5 quarters – from January 1, 2022 to March 31, 2023 – Flourish Cash’s client base tripled while Flourish Cash clients earned tens of millions in interest, benefiting from 9 rate increases. And the current rates are about 11x the national savings account average.
RIAs and their clients are going to benefit from the upgrades to both Flourish Cash and Flourish Crypto, which is a turnkey, direct-ownership cryptocurrency investing solution. These include:
1.) Recurring transfers – Recurring transfers prioritizes savings goals by enabling Flourish Cash clients to automate savings allocations on a regular basis
2.) Recurring buys – Flourish Crypto clients can set up automated cryptocurrency purchases to invest in cryptocurrencies using the dollar-cost averaging method
3.) Client onboarding – New Flourish clients will experience less friction through onboarding with newly created efficiencies that allow clients to more easily open and fund accounts
4.) Advisor Resource Center – This self-service access point for co-branded fact sheets, marketing templates, operations guides, client invite status and more puts needed materials at advisors’ fingertips
5.) Instant transfers – Clients are able to instantly move funds between their accounts, with immediate trading availability
6.) Business accounts for Flourish Cash – The benefits of Flourish Cash–the ability to earn competitive interest rates with unlimited withdrawals–are available to small businesses and nonprofits with elevated FDIC insurance coverage through our Program Banks of $1.5 million3
7.) Additional Program Banks and Elevated FDIC Insurance – Flourish’s Program Banks now include TriState Capital Bank and Associated Bank, allowing Flourish Cash clients to benefit from increased FDIC insurance–with two-person households eligible to receive up to $6MM in FDIC insurance by opening a joint account and two individual accounts
8.) Redtail integration – From within the Flourish Advisor Dashboard, advisors have the ability to quickly pre-fill client applications and invite clients with the press of a button using data stored in Redtail
9.) Additional resources – Expanded content like an ongoing educational series about all things cash, The Cash Opportunity for Advisors, which is available to help advisors learn more about why it’s important to talk to their clients about cash holdings
Additionally, Flourish Cash receives the highest rating for cash-management services for the second year in a row as well as for crypto services in the 2023 T3 Inside Information Advisor Software Survey, which polled over 3,300 members of the financial planning and investment advisor community.
More than 550 RIAs managing over $1.5 trillion in combined assets trust Flourish to help them bring more assets into their orbit. And the Flourish platform allows advisors to feature their firm’s branding, take discretion or offer client-directed accounts, as well as provide client-friendly marketing materials, robust and customizable compliance resources, white-glove support, etc. Flourish is wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual).
KEY QUOTES:
“Interest rates have risen significantly the past 12 months, opening the door for Americans to earn more on their cash. We are excited to be growing at record speed while helping advisors broaden their client relationships and add value–especially given the heightened importance of FDIC insurance amidst bank uncertainty. At the current top rate and with an average household balance of $183,219 for clients with a net worth of $1-2MM, clients would earn over $7,000 per year in interest–that could cover a vacation, tax payments, or the year’s advisory fees. It’s a compelling business case and an important moment to check in with clients about their held away cash.”
– Max Lane, CEO of Flourish
