Mariner, one of the largest RIAs in the US, has entered an enterprise relationship with Flourish, a wealthtech platform specializing in cash management.
The agreement announced Tuesday will make Flourish Cash available to Mariner’s network of advisors, a move that reflects a growing industry focus on helping clients optimize the cash they keep outside traditional portfolios.
The partnership follows a similar agreement last year between Flourish and Focus Financial, and another involving Carson Group earlier this year.
Industry research suggests that advisors may be underestimating the importance – and the scale – of cash held outside their management. According to a 2022 Capgemini World Wealth report, individuals with at least $1 million in investable assets keep about 20% of their net worth in cash.
A survey last year by Flourish and Wealth Management IQ found that while advisors believe their average client holds 7% of their net worth in cash, high net worth individuals actually hold more than 30% in cash. Despite this, only 5% of advisors consistently discuss cash holdings with clients, even though 95% acknowledge it as a professional responsibility.
That same research found 92% of advisors reporting their clients are interested in keeping cash in high-yield savings accounts. Seventy-one percent believed having cash management services would make them more competitive against other advisory firms; another 68% said it would give them an edge over wirehouses, and 62% agreed it would help against robo-advisors.
“Industry research and our own Flourish data confirm that high and ultra-high net worth investors hold about 20% of their net worth in cash, outside the portfolio where these funds are typically earning next to nothing and are often well over the FDIC limits, unprotected from potential bank failures,” said Flourish CEO Max Lane.
Katrina Radenberg, chief investment officer at Mariner, said the firm is committed to providing advisors with access to “best-in-class solutions that enable them to execute comprehensive, unified wealth plans for their clients.
"This formal relationship strengthens our advisors' capabilities while seamlessly integrating into their existing workflows, offering greater visibility into clients' cash savings and unlocking new avenues for growth."
Flourish, which is wholly owned by MassMutual, is hardly the only wealth tech platform offering cash management. Last year, Altruist launched its own high-yield cash product for RIAs, which it said would give advisors a way to give clients industry-leading yield on cash without having to refer them to a third-party account.
Flourish Cash leads the Cash Management category on Michael Kitces' canonical fintech directory with an integration score far ahead of its peers including MaxMyInterest and KeepCash.
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