Managing too much cash could become a problem sometimes, be it business or professional. You need to keep it at a place which is secure and with bank deposits only protected up to £85,000 the cash-rich are left opening accounts at multiple banks just in order to keep their money safe. And moving it around is another headache to find out the best interest rates.
This is where London-based fintech Flagstone plays an important role, as it specialises in moving money between several banks with hundreds of accounts in order to keep cash safe and maximise returns and now the UK startup has secured £12 million (nearly €13.5 million) funding. The investment was led by OMERS Ventures along with participation from existing investors such as Kindred Capital and Moneysupermarket Group plc.
Expansion plans within the UK
The company will use the fresh investment to support the acceleration of its plans to extend into the UK market so that it can meet new customer segments. Simon Merchant, Co-Founder and Co-Managing Partner of Flagstone said, “Raising growth capital from leading investors such as OMERS Ventures is a testament to the strength of our business model and the great work that the Flagstone team does every day to support clients with protecting their cash deposit investments.”
Heads up about Flagstone!
Founded in 2013 by Simon Merchant and Andrew Thatcher, Flagstone provides individuals, businesses, wealth managers, and charities with access to hundreds of cash deposit accounts with market-leading or exclusive interest rates from a portfolio of 44 banks including HSBC and Nationwide besides a slew of challenger banks.
What does Flagstone do?
The cash deposit marketplace of Flagstone lets clients increase their interest income and manage their risk via diversification and FSCS protection. It provides its cash deposit platform to clients of Revolut in the UK. Already, Flagstone is the exclusive cash deposit platform for clients of St. Jame’s Place, Tilney Group, Charities Aid Foundation, and Quilter Cheviot among other leading wealth management firms.
With Flagstone, clients get the control of their cash and it provides them with consolidated reporting, regular new rate alerts about the performance of their cash 24/7, and more. You can get an idea of how Flagstone function from the video here.
Commenting on the development, Harry Briggs, Managing Partner for Omers Ventures in London, said, “The Flagstone team impressed us from the start. The founders know this market inside out and have quietly built the runaway market-leader in the UK by addressing systemic issues in the banking system by using smart technology to help empower users to earn more interest income and reduce risk. In these uncertain times, everyone – households, small businesses, charities – is anxious about cash, and Flagstone helps people make their money work harder for them at the click of a button. We are very much looking forward to working with the team.”
Main image picture credits: Flagstone
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