Flourish Hits $2 Billion AUC Milestone Amid Record Demand
New Features, Expanded FDIC Coverage, Added Integrations, and More Drive RIA Adoption
New York, April 18, 2023 (GLOBE NEWSWIRE) — Flourish, a platform which provides innovative access to financial products that help registered investment advisors (RIAs) secure their clients’ financial futures, today announced record growth alongside other milestones including enhancements to its product suite and integration partner ecosystem. The company now boasts more than $2 billion in assets under custody (AUC) and over 550 RIA firms on the platform.
In tandem with rising rates, Flourish Cash,1 Flourish’s cash management solution built explicitly for RIAs that offers clients competitive interest rates and elevated FDIC insurance through its Program Banks, has fueled Flourish’s growth over the past several quarters. In the last 5 quarters–from Jan 1, 2022-March 31, 2023–Flourish Cash’s client base tripled while Flourish Cash clients earned tens of millions in interest–benefiting from 9 rate increases. Current rates are 11x the national savings account average and are updated here: https://www.flourish.com/clients/cash.
RIAs and their clients will benefit from the upgrades to both Flourish Cash and Flourish Crypto,2 a turnkey, direct-ownership cryptocurrency investing solution. These include:
- Recurring transfers: Recurring transfers prioritizes savings goals by enabling Flourish Cash clients to automate savings allocations on a regular basis
- Recurring buys: Flourish Crypto clients can set up automated cryptocurrency purchases to invest in cryptocurrencies using the dollar-cost averaging method
- Client onboarding: New Flourish clients will experience less friction through onboarding with newly created efficiencies that allow clients to more easily open and fund accounts
- Advisor Resource Center: This self-service access point for co-branded fact sheets, marketing templates, operations guides, client invite status and more puts needed materials at advisors’ fingertips
- Instant transfers: Clients can instantly move funds between their accounts, with immediate trading availability
- Business accounts for Flourish Cash: The benefits of Flourish Cash–the ability to earn competitive interest rates with unlimited withdrawals–are available to small businesses and nonprofits with elevated FDIC insurance coverage through our Program Banks of $1.5 million3
- Additional Program Banks and Elevated FDIC Insurance: Flourish’s Program Banks now include TriState Capital Bank and Associated Bank, allowing Flourish Cash clients to benefit from increased FDIC insurance–with two-person households eligible to receive up to $6MM in FDIC insurance by opening a joint account and two individual accounts
- Redtail integration: From within the Flourish Advisor Dashboard, advisors have the ability to quickly pre-fill client applications and invite clients with the press of a button using data stored in Redtail
- Additional resources: Expanded content like an ongoing educational series about all things cash, The Cash Opportunity for Advisors, is available to help advisors learn more about why it’s important to talk to their clients about cash holdings
Additionally, Flourish Cash received the highest rating for cash-management services for the second year in a row as well as for crypto services in the 2023 T3 Inside Information Advisor Software Survey, which polled over 3,300 members of the financial planning and investment advisor community.4
“Interest rates have risen significantly the past 12 months, opening the door for Americans to earn more on their cash. We are excited to be growing at record speed while helping advisors broaden their client relationships and add value–especially given the heightened importance of FDIC insurance amidst bank uncertainty,” said Max Lane, CEO of Flourish. “At the current top rate and with an average household balance of $183,219 for clients with a net worth of $1-2MM, clients would earn over $7,000 per year in interest–that could cover a vacation, tax payments, or the year’s advisory fees. It’s a compelling business case and an important moment to check in with clients about their held away cash.”
Over 550 RIAs managing over $1.5 trillion in combined assets trust Flourish to help them bring more assets into their orbit. The Flourish platform allows advisors to feature their firm’s branding, take discretion or offer as client-directed accounts, as well as providing client-friendly marketing materials, robust and customizable compliance resources, white-glove support, and more.
Flourish is wholly-owned by Massachusetts Mutual Life Insurance Company (MassMutual).
Flourish builds technology that empowers financial advisors, improves financial lives and retirement outcomes, and delivers new and innovative investment options to advisors. Today, the Flourish platform supports more than $2 billion in assets under custody and is used by more than 550 wealth management firms representing more than $1.5 trillion in assets under management. Flourish is wholly owned by MassMutual. For more information, visit www.flourish.com.
Forward Looking Statements
This press release may contain forward looking statements that are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied.
Flourish is an online platform through which investors can access financial services and products. The services and products offered through Flourish are provided by different entities and are subject to different terms, investor protections and risks. Flourish Cash is offered by Flourish Financial LLC, a registered broker-dealer and FINRA member. Flourish Financial LLC is not a bank. Check the background of Flourish Financial LLC and its personnel on FINRA’s BrokerCheck. Flourish Crypto is offered by Paxos Trust Company, LLC (Paxos), a New York limited purpose trust company regulated by the New York Department of Financial Services that provides cryptocurrency custody and execution services for the Flourish Crypto accounts, and Flourish Digital Assets LLC (Flourish Digital Assets), which is registered in New York as a commodity broker-dealer and provides website and other technology services and support for Flourish Crypto accounts. Flourish Financial LLC and Flourish Digital Assets LLC are affiliates, but are not affiliates of Paxos. Please review the Legal section of our website, and the disclosures provided with each Flourish service or product, for further information regarding each service and product. If you were introduced or invited to Flourish by a third-party investment adviser or other third party, whose name or logo may be shown above, please be aware that, unless otherwise disclosed to you, they are not affiliated with any Flourish entity. The role of the investment adviser or other firm that invited you to Flourish may vary between different Flourish services and products, as further described in the terms for each service or product. © 2023 Flourish. All rights reserved.
1 A Flourish Cash account is a brokerage account offered by Flourish Financial LLC. Flourish Financial LLC is not a bank. The cash balance in a Flourish Cash account will be swept from the brokerage account to deposit account(s) at one or more third-party banks that have agreed to accept deposits from customers of Flourish Financial LLC (Program Banks). The accounts at Program Banks will pay a variable rate of interest. Check the background of Flourish Financial LLC and its personnel on FINRA’s BrokerCheck.
2 Flourish Crypto is a cryptocurrency investment account through which investors can trade cryptocurrencies and maintain custody of cryptocurrencies and U.S. dollars. Custody of Flourish Crypto accounts, including all assets in the accounts, and cryptocurrency trading services are provided by Paxos Trust Company, LLC (Paxos Trust Company) in accordance with the Paxos Terms. Paxos is a New York limited purpose trust company regulated by the New York Department of Financial Services. Website and other technology services and support for Flourish Crypto accounts are provided by Flourish Digital Assets LLC (Flourish Digital Assets) in accordance with the Flourish Crypto Terms. Flourish Digital Assets is registered in New York as a commodity broker-dealer. Investment options in Flourish Crypto accounts are currently limited to bitcoin and ethereum. Cryptocurrencies held in Flourish Crypto accounts are not currently eligible for in-kind transfer to other custodians or cryptocurrency wallets. If a Flourish Crypto account is closed, the customer’s cryptocurrency positions will be liquidated and the customer will receive the U.S. dollar proceeds. Investing in cryptocurrencies involves a high degree of risk, as further described in the risk disclosures in the Paxos Terms and the Flourish Crypto Terms.
3 The cash balance in a Flourish Cash account that is swept to one or more Program Banks is eligible for FDIC insurance, subject to FDIC rules, including FDIC aggregate insurance coverage limits. FDIC insurance will not be provided until the funds arrive at the Program Bank. There are currently at least 6 Program Banks available to accept deposits for institutional Flourish Cash accounts (accounts for corporations, partnerships and other legal entities) and at least 6 Program Banks available to accept deposits for personal Flourish Cash accounts (individual, joint and revocable trust accounts), and we are not obligated to allocate customer funds across more than this number of Program Banks if there is a greater number of banks in the Program. Customers are generally eligible for FDIC insurance coverage of $250,000 per customer, per Program Bank, for each account ownership category. Thus, institutional customers are eligible for up to $1,500,000 of FDIC insurance and personal customers are eligible for (i) up to $1,500,000 of FDIC insurance for either (A) an individual account or (B) an account for a revocable living trust in which one person is the only grantor, trustee and beneficiary of the trust (“Individual Revocable Trust Account”) and (ii) up to $3,000,000 of FDIC insurance for either (A) a joint account with two owners or (B) an account for a revocable living trust in which the same two persons are each the only grantors, trustees and beneficiaries of the trust (“Joint Revocable Trust Account”). The total FDIC coverage for a two-person household is calculated assuming that each household member has an individual account and that both household members share a joint account. If the number of Program Banks decreases for a customer (either because a Program Bank is no longer participating in Flourish Cash, because a customer’s cash is not eligible to be swept to a Program Bank based on criteria set by the Program Bank (which will be disclosed at account opening), or because a customer opts out of having their cash swept to a particular Program Bank), the amount of FDIC insurance for which the customer would be eligible through Flourish Cash would be lower. Typically, all of a customer’s deposits at a Program Bank in the same ownership category (including deposits held outside Flourish Cash or held through multiple Flourish Cash accounts with the same ownership category) count toward the FDIC insurance limit for deposits at that Program Bank. Customers are responsible for monitoring whether they maintain deposits at a Program Bank outside of Flourish Cash and should consider opting out of having their cash swept to any such Program Bank to avoid exceeding FDIC insurance limits. Although Flourish Cash is offered through a brokerage account and cash held in brokerage accounts often has the benefit of SIPC protection, until such time as we offer securities products, customers likely will not have the benefit of SIPC protection for cash held in their Flourish Cash account. Further, SIPC protection is not available for any cash held at the Program Banks. Our current Program Banks can be found here. For additional information regarding FDIC coverage, visit https://fdic.gov.
4 This feedback may not be representative of the experience of other customers, and is not a guarantee of future performance or success. Flourish did not provide any compensation in exchange for this recognition, and the survey was conducted independently without Flourish’s control over methodology or sample size.
CONTACT: Marissa Arnold for Flourish [email protected]