Clients increasingly expect their financial advisors to help with areas of their financial lives beyond their investment portfolios. Cash is one of the most important parts of their financial picture, yet it all too often remains outside the advisory relationship.
For many clients, their bank account is where paychecks arrive, bills are paid, emergency funds accumulate, and major financial decisions begin. The lack of visibility into a meaningful portion of a client’s assets leaves advisors with fewer opportunities to help clients decide what that money should be doing.
The opportunity for advisors is not simply to offer a cash solution. It is to bring cash more intentionally into the advisory relationship.
Clients may be holding more cash than you think
Ask an advisor how much cash a typical client holds, and their first thought may be the 1-2% that typically sits in a custodial cash position. Ask clients directly, and the picture can look very different.
Research has found that high-net-worth households can hold 20% or more of their wealth in cash.1 Flourish Cash† is an invitation-only cash account built for clients of independent financial advisors and sees a similar trend firsthand: among Flourish Cash households reporting a net worth between $1-2M, the average household holds approximately $195,000 in Flourish Cash alone.||
Much of this cash has historically lived at banks, beyond the systems advisors use to manage portfolios and financial plans. This dynamic creates a simple question for advisory firms: Do you know how much cash your clients actually hold, where they hold it, and what they are doing with it?
If the answer is no, there may be an opportunity to provide considerably more value.
Using cash to create better client conversations
Bringing held-away cash into view can help advisors engage clients around decisions that may otherwise happen outside the advisory relationship.
Consider a client with $200,000 in cash when their financial plan calls for an $80,000 emergency reserve. Without visibility into the amount, the excess may remain untouched for years. If the advisor can see it, however, the conversation changes.
Perhaps the full balance is appropriate because the client is preparing for a home purchase, tax payment, or another near-term need. Or perhaps some of it could be put to work elsewhere in the financial plan. Other cash activity can add even more context to those conversations. With Flourish Cash, advisors can see how clients use account buckets to earmark specific amounts for specific financial goals. Direct deposit and bill payment can provide additional insight into money flowing into and out of the account, helping advisors better understand clients’ income, spending, and overall cash flow.
The point is not that every dollar of cash should be invested. It is that advisors can make better recommendations when cash is brought into focus and they have a more complete picture of the client’s financial life.
At Flourish, we have seen that visibility translate into action. More than $1B net has flowed from Flourish Cash accounts to custodians as advisors and clients identify cash that may be better suited for longer-term investing.||
Cash can also be a growth conversation
Cash has another useful characteristic: virtually every client and prospect understands it.
For a prospect who is hesitant to move an investment portfolio, discussing the cash earning little at their bank can be an easier way to begin a relationship.
The same can be true for next-generation clients, business owners, and non-profit organizations, groups that may maintain meaningful cash balances even when they are not yet ready for a broader wealth-management conversation. Providing a useful solution to an immediate problem gives an advisor a reason to start the conversation today while demonstrating the broader value their firm can provide.
For Amanda Wray, Founder, CCO, and Senior Financial Advisor at Next Up Wealth Advisors, a $130M AUM Arizona-based firm, a conversation about cash became the starting point for a much larger relationship: “I was playing pickleball with a friend who was frustrated with his advisors because, as he put it, ‘they never bring me anything new.’ We grabbed coffee afterward and I showed him Flourish Cash. It was an easy conversation because I wasn’t making a sales pitch—I was solving a real problem and adding value. He ultimately moved his entire $20M relationship to our firm."±
At Flourish, we believe private-bank-like capabilities can be powerful for independent advisors. Historically, banks and wirehouses have had a natural advantage: banking, lending, and investment management all sit within the same institution. Independent advisors should not have to become banks to compete with that experience. Instead, technology can allow them to remain at the center of those financial moments while providing clients with purpose-built solutions through their advisory firm.
Turning insight into action within Orion
Of course, visibility is only useful if advisors can easily act on it. And that is where the expanded integration between Orion and Flourish comes in.
Flourish Cash account data flows into Orion, allowing advisors to incorporate clients’ cash alongside the rest of their financial picture. Today, approximately $3 billion in Flourish Cash is reported through Orion.|| The expanded integration, released in May, takes that connection a step further.
Advisors can identify potential held-away cash opportunities and initiate a Flourish Cash invitation directly from Orion. Information already available within Orion can be used to prefill applications, helping reduce duplicate data entry and the need to move between systems. Once the client opens and funds the account, Flourish Cash data flows back into Orion through the existing integration. The result is a more connected workflow: identify an opportunity, take action, and maintain visibility, all while working within the technology advisors already use.
Making cash part of the advisory experience
Flourish Cash is an invitation-only cash account designed specifically for clients of independent financial advisors. Clients can earn a competitive rate,§ access expanded FDIC insurance coverage through a network of Program Banks,Ω and manage their personal and business cash flow with features including same-day transfers, direct deposit, bill payment, account buckets.
For advisors, however, the bigger opportunity is what those capabilities make possible.
Cash no longer has to be something that simply sits at the bank, disconnected from the financial plan. It can become another part of the ongoing advisory conversation, helping firms deliver additional client value, uncover growth opportunities, and strengthen their position at the center of clients’ financial lives.
And when those insights and actions are connected directly to the systems advisors already use, incorporating cash into the advisory relationship becomes even easier.
Interested in learning more? Orion clients can connect with Orion Account Executive, Spencer Smalley, at spencer.smalley@orion.com to learn more about enabling the Flourish integration and incorporating Flourish Cash into their practice.