The number of UK finanacial advisers advising on cash has almost doubled in the past three years, according to research by Flagstone.
The cash deposit platform asked 100 advisers and wealth managers about their attitudes to cash and whether it was a long-term shift.
The study found 66 per cent were now advising on cash, a 47 per cent increase compared with a similar study done in 2021.
With the Bank of England base rate higher than recent years, 93 per cent of advisers said appealing interest rates was the key reason clients are investing in cash.
Simon Merchant, CEO at Flagstone, said: “Once the unsung hero of investment portfolios, cash is coming into its own. We have for a long time considered cash the inevitable asset class.
"Comparing our findings three years apart, it’s clear that advisers stand to play an important role in challenging and reversing inertia in the savings space.
"With all the available rates, returns and tools at their fingertips, those advisers who aren’t advising on cash surely have to ask themselves why not, and how much longer that can last.”
However, 35 per cent of advisers said the time consuming process of talking to clients about cash management puts them off, while 44 per cent said cash management offers them limited revenue potential.
Just over half said cash management was not something many of their clients were aware of, but a quarter said cash comes up more in conversations with clients than it did three years ago.
Claire Jones, head of strategic relationships, said Flagstone works with more than 5,000 advisers but wants to see a greater industry-wide focus on savings as an investment class.
She added: "The faster these individuals see the benefits of cash for their clients, the sooner they dispel the ideal that there’s limited gain from cash for themselves as professionals or small business owners."
tara.o'connor@ft.com
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