FNZ, the platform engine behind many UK investment platforms, has added a cash management and savings solution with an investment in fintech Bondsmith.

The Series-A investment in Bondsmith sees its solutions integrated into FNZ’s platform engine.

The platform engine has added cash savings as an investable asset class.

Bondsmith is looking to make holding cash assets on platforms more popular by offering a range of savings solutions to increase the opportunity for competitive returns.

The solution allows savers to access competitive rates whilst taking advantage of investment and pension tax wrappers.

It is delivered in partnership with a panel of banks including Investec and Cater Allen.

Bondsmith also offers a treasury platform and treasury advisory services to help corporate and institutional clients to manage liquidity, diversity counterparty risk, and increase interest income.

It advises on over £3bn in treasury service deposits.

Michael Doyle, founder and CEO at Bondsmith, said the FCA’s new Consumer Duty rules could lead to more advised clients keeping cash on investment platforms.

He said: “Our partnership with FNZ could not come at a better time. The base rate of the Bank of England, as with other central banks worldwide, is as high as it has been since the financial crisis.

“With the new FCA consumer duty rules coming into place from next year, it is more important than ever for the wealth industry to be focused on delivering great consumer outcomes. Actively managing cash, which makes up 5-10% of most portfolios, and ensuring the consumer benefits, is a great way to achieve this.”

Din Mustaffa, group chief strategy officer at FNZ, said the platform engine’s investment in Bondsmith could allow for more holistic Financial Planning.

He said: “Our investment in Bondsmith, and the integration of its solutions into our global wealth management platform, will further improve functionality and customer choice as we seek to deliver on our mission of opening up wealth.

“Generally, cash that is not actively managed results in savers seeing negative returns, as interest gains are offset by fees. The partnership with Bondsmith will allow FNZ’s customers to offer their clients a new asset class, make active cash management more accessible, provide greater opportunity for competitive returns and allow for more holistic Financial Planning.

“This will help savers get the most out of their cash, which is particularly important at a time when household finances are being squeezed and every basis point counts.”

In December FNZ sold off its acquired rival GBST to a private equity firm after the Competition and Markets Authority (CMA) blocked FNZ’s acquisition of GBST. In June last year the CMA ordered FNZ to sell off GBST's platform arm after concluding that the £150m merger of FNZ and GBST risked reducing competition in the UK platform market.