Keep

Keep: Institutional Deep Dive into Automated Cash Management

Keep presents itself as a specialized planning tool focused squarely on optimizing client cash holdings – a frequently overlooked, yet crucial, component of overall wealth management. Golden Door Asset analysts have assessed Keep’s potential for integration within the tech stacks of RIAs managing substantial AUM, focusing on its operational efficiency gains and client outcome improvements.

Core Capabilities and Institutional Application

Keep's core value proposition resides in its specialized focus: automated cash sweep programs, FDIC insurance management, yield optimization, risk mitigation, and client cash balance reporting. These features, while seemingly basic, address a critical blind spot in many traditional financial planning platforms, which often treat cash as a static asset rather than a dynamic opportunity.

• Automated Cash Sweep Programs: Enables RIAs to automatically move client cash balances into higher-yielding accounts, maximizing returns on idle funds. This function eliminates manual intervention, freeing up advisor time for more strategic client interactions.
• FDIC Insurance Management: Dynamically allocates client cash across multiple FDIC-insured institutions, ensuring full coverage and mitigating risk. This is particularly valuable for high-net-worth clients with significant cash holdings.
• Yield Optimization: Actively seeks out and allocates cash to the highest-yielding, low-risk options available within the Keep ecosystem. This feature necessitates sophisticated algorithms and real-time market data integration.
• Risk Mitigation: Beyond FDIC insurance, Keep likely employs other risk management strategies to protect client cash from market volatility or unforeseen circumstances. Details on these strategies are vital during vendor due diligence.
• Client Cash Balance Reporting: Provides advisors with a comprehensive view of client cash balances across all managed accounts, facilitating informed decision-making and proactive client communication.

The institutional application of Keep centers around operational leverage. By automating cash management, Keep allows advisors to focus on higher-value activities such as financial planning, investment management, and client relationship building. The efficiency gains can be significant, particularly for firms managing a large number of clients with substantial cash holdings.

Integration & Data Flow Analysis

Keep's success hinges on its ability to seamlessly integrate with existing RIA technology ecosystems. Given its specialized nature, it is highly unlikely to function as a standalone solution.

Key integration points to consider:

• Custodial Platforms: Integration with custodial platforms (e.g., Schwab, Fidelity, Pershing) is paramount for automated cash sweeps and accurate client balance reporting. This integration must be robust, reliable, and secure. Data latency must be minimized to ensure accurate cash allocation.
• Financial Planning Software: Integration with financial planning software (e.g., eMoney, MoneyGuidePro, RightCapital) allows for a holistic view of client finances, incorporating cash holdings into overall financial plans. This integration enables advisors to provide more comprehensive and personalized advice.
• CRM Systems: Integration with CRM systems (e.g., Salesforce, Redtail) allows for tracking client interactions related to cash management, ensuring consistent communication and personalized service.
• Data Aggregators: While perhaps redundant with custodial integrations, integration with data aggregators like Envestnet | Yodlee or MX could provide an added layer of data verification and reconciliation.

The data flow must be bi-directional, allowing for real-time updates and accurate reporting across all integrated systems. APIs must be well-documented, and the integration process should be straightforward to minimize implementation costs and ongoing maintenance. Golden Door Asset emphasizes the importance of rigorous testing and validation of all integrations prior to deployment.

The Verdict: Ideal Users and Those Who Should Avoid

Definitively built for:

• RIAs with $1B+ AUM: The operational leverage provided by Keep is most valuable for larger RIAs with a significant client base and substantial cash holdings.
• Firms focused on operational efficiency and automation: RIAs seeking to streamline their operations and free up advisor time will benefit most from Keep's automated cash management capabilities.
• Firms with clients demanding higher yields on cash: Keep's yield optimization features can help RIAs attract and retain clients who are sensitive to cash yields.

Those who should avoid:

• Smaller RIAs with limited resources: The cost of implementing and maintaining Keep may outweigh the benefits for smaller firms with limited AUM.
• Firms that prioritize a fully integrated, all-in-one solution: Keep is a specialized tool that requires integration with other platforms. Firms seeking a single platform to manage all aspects of financial planning may find it less appealing.
• Firms that lack the technical expertise to manage integrations: Implementing and maintaining integrations requires technical expertise. Firms without internal IT resources may struggle to effectively utilize Keep.

Keep represents a compelling solution for RIAs seeking to optimize client cash management and improve operational efficiency. However, a thorough understanding of its capabilities, limitations, and integration requirements is essential for making an informed decision. Golden Door Asset recommends conducting a pilot program to assess Keep's performance in a real-world environment before committing to a full-scale deployment.