Assets under administration (AUA) at Flagstone, the UK’s leading cash deposit platform*, have topped £10 billion for the first time, thanks to fast adoption of the company’s fintech solution and market-wide demand for competitive cash savings options.
Flagstone has transacted more than £13 billion on behalf of savings customers since 2015. In that time the company has become the largest cash deposit platform by the number of banks on its panel. Today, customers using Flagstone have the opportunity to gain access to 200 savings accounts from almost 60 of the UK’s leading cash savings providers, from the largest incumbent banks to challengers.
With a customer base of over 600,000, Flagstone’s total AUA is currently increasing by more than £1 billion per quarter as more customers look to maximise the interest earning potential of their savings in a high interest rate environment. Since December 2021, the Bank of England base rate has risen 515 basis points (from 0.1% to 5.25%) and one year fixed term savings rates have increased from an average 1.08% to as much as 6.20%.
Originally created as a platform for individual savers to access and maintain multiple cash savings accounts in one single place, today Flagstone provides white-label and API-integrated capabilities for businesses to offer their own customers easy-to-use, adaptable and competitive savings options. Flagstone partners with many of the UK’s leading wealth management firms including St James’s Place, and powers a range of savings products at financial services providers including Saga and Revolut.
Using Flagstone’s platform, consumers can easily access and manage the UK savings market's widest choice of instant access, fixed term and notice accounts through a single application. Customers have fast access to the accounts, terms and rates they prefer all in one place, can move money between accounts to boost interest earning potential, and maximise FSCS protection by spreading savings across banks.
Simon Merchant, Co-Founder & CEO at Flagstone, comments:
“In this prolonged high inflation environment, every penny counts. People are working harder for their money and they want the money they save to work harder for them. But, often they lack the access and ability to make that happen. Researching, comparing and then switching between savings accounts across multiple providers takes time, effort and money, all of which reduces the perceived benefit of earning better interest in the first place and increases complacency.
"Here, fintech has the opportunity to provide consumers with the sort of flexibility, visibility and ease they are used to when it comes to running so many other aspects of their daily lives and apply it to making rainy day funds, mortgage deposits and children’s university nest-eggs work a lot harder.”
According to research published by the Financial Conduct Authority in July 2023**, £250 billion (approx one fifth) of all UK cash deposits are currently earning savers 0% interest. What’s more, less than a quarter (23%) of UK savers switched savings accounts in the first half of the year to get a better interest rate.
Conversely, the average Flagstone customer spreads their savings across five accounts at any time, and will move savings between accounts seven times a year to maximise interest earning potential.
Merchant concludes:
“The idea that consumers are rediscovering cash is wrong. The great rebound to cash is anything but - consumers never left. Instead, what we’re seeing is brands and banks waking up to the reality that they must provide to their customers better savings options that don’t impinge on choice or competition.
"Single account providers can’t fill this gap alone and so innovation in savings has been slow to make headway. The opportunity for fintechs like Flagstone to bring the industry together to increase competition and choice is exciting.”
* Based on number of banks on panel, and Trustpilot customer review ratings
** FCA Cash Savings Market Review, July 2023
Press office contacts
Carmen Dixon: 07717 278846 | carmen@ripplecomms.co
Jo Candy: 07909 992082 | jo@ripplecomms.co
