AssetMark is looking to expand its influence in the wealth tech space by helping advisors tap a flourishing opportunity in financial planning for their clients.
The California-based fintech announced that it has enhanced its Cash Solutions suite by adding FDIC-insured certificates of deposit and purchased money market funds.
The expansion to include CD Plus and MMF offerings aims to help advisors tap into what an analysis by the firm identified as an $8 billion opportunity within the cash holdings of wealth clients.
David McNatt, executive vice president and head of investment solutions at AssetMark, emphasized the significance of cash in financial planning, especially in the current interest rate environment.
"Cash is a critical component of any sound financial plan, yet it has often been overlooked," McNatt said in a statement Monday. "With elevated interest rates for the first time in decades, AssetMark Cash Solutions provides advisors a compelling value proposition to help clients capitalize on this environment and improve their short and long-term financial outcomes."
The newly introduced CD Plus product offers FDIC insurance on large cash balances, competitive interest rates, flexible terms, and convenient account management. This addition is part of AssetMark's broader strategy to offer advisors a suite of cash management tools beyond traditional rate-focused products.
The firm touted its cash solutions’ potential to help enhance client outcomes with benefits around portfolio diversification, cash flow management, and optimizing short-term funding goals.
"By integrating cash management into the wealth planning conversation, advisors can demonstrate their strategic value and strengthen client relationships," he said.
A majority of advisors in a survey report by Flourish earlier this year recognized the untapped opportunity around cash management. According to Flourish’s March report, 95 percent acknowledged that discussing cash management is part of their professional duty to clients.
A smaller majority also agreed cash management services would give them a competitive edge against other advisory firms (71 percent) as well as wirehouses (68 percent) and robo-advisors (62 percent).
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