The fintech company Bondsmith, which offers savings and cash management solutions for the wealth industry, has received a Series-A investment from FNZ.
With this investment, Bondsmith’s products will be incorporated into FNZ’s worldwide wealth management platform as part of larger cooperation.
More than 650 of the world’s top financial institutions and 8,000 asset management companies in 21 countries will benefit from improved technology.
Due to the challenges platform providers experience in locating acceptable banking counterparties who match both risk appetite and provide a reasonable yield, cash kept on platforms typically sees poor returns for users.
Additionally, savers often do not invest their assets into platforms owing to a lack of acceptable possibilities; instead, they prefer to deal directly with banks or use specialized cash-saving solutions.
By providing a variety of savings options that seamlessly link depositors, banks, and financial institutions, Bondsmith aims to alleviate these issues.
This will raise the possibility of competitive returns and strengthen the position of cash as a viable wealth management choice.
The approach increases the Financial Services Compensation Scheme (FSCS) protection while enabling savers to quickly access competitive interest rates and examine all of their cash holdings in one location.
This solution is provided by Bondsmith in collaboration with a group of banks that includes Investec and Cater Allen.
Along with treasury advising services, it also provides a treasury platform that aids corporate and institutional clients in managing liquidity, reducing counterparty risk, and boosting interest revenue.
Bondsmith’s Treasury Services provide advice on deposits totaling over £3 billion, including a number of FNZ clients.
FNZ hopes to provide more competitive interest rates for end investors by making active cash management simpler and more affordable for its consumers.
Bondsmith is a UK-based company that is a recognized electronic money institution by the FCA.
It wants to expand into new foreign markets and plans to do so by the end of the year by starting operations in the Asia-Pacific region.
Bondsmith recently acquired Wells Money Brokers, a top UK institutional cash deposit broker, using the financing it had obtained.
Michael Doyle, the creator, and chief executive of Bondsmith, continued, “This investment represents a fantastic growth opportunity for Bondsmith. Our staff is growing, and we are now focusing on the Asia-Pacific region and beyond on a global scale.
“With the fantastic solutions we have built now incorporated into their worldwide platform, we are looking forward to working even more closely with FNZ. This will make it possible for us to support the financial aspirations of millions of individuals throughout the world.
The timing of our relationship with FNZ is ideal. Similar to other central banks throughout the world, the Bank of England’s base rate is at its highest point since the financial crisis.
The wealth industry must now more than ever be focused on achieving excellent customer outcomes because of the new FCA Consumer Duty regulations that will go into effect at the beginning of the next year. This may be accomplished by actively managing cash, which typically comprises 5 to 10 percent of portfolios, and making sure that consumers benefit.
FNZ made an investment in the data and analytics firm GIST last month in order to assist its “rapid expansion and goal.”
The investment is a part of a larger collaboration in which FNZ’s sustainable investing product, FNZ Impact, will incorporate GIST’s sustainability data.
In February, FNZ said that Motive Partners and the Canada Pension Plan Investment Board (CPP Investments) had provided the company with fresh equity capital totaling US$1.4 billion (£1.03 billion) (Motive).
The platform technology supplier claims that it intends to expand in areas it has recently entered while accelerating expansion through enhanced research and development.
