Titan Targets High-Yield Seekers With Automated Smart Cash Solution: What T-Bill Investors Need To Know

Since its inception, Titan, an asset management platform, has been a game-changer in democratizing wealth management.

The company is now shaking up the cash management industry with its latest offering, Smart Cash.

Benzinga spoke with Titan co-founder and co-CEO Clayton Gardner about the new product.

Born out of Gardner’s personal frustrations with managing his own cash, Smart Cash is an automated solution designed to solve a widespread problem — the tedious task of chasing the highest interest rates for your cash.

Recently, these investors have been piling into money-market funds, high-yield savings accounts, certificates of deposits and Treasury bills, all boasting interest rates of around 3% to 5%. Over the past year, T-bill yields have jumped following a series of interest rate hikes from the Federal Reserve, giving a unique opportunity to investors not seen since the Great Recession, with the exception of 2018.

This is where Smart Cash comes in.

Titan’s solution scans the universe of cash options and treasury funds daily, asks users a few questions about their tax situation, and then places them in the option that offers the highest after-tax yield.

Read Also: Stocks Rally, Dollar Hits 15-Month Lows On Falling Inflation: What’s Driving Markets Wednesday?

How Does It Work? Titan’s AI algorithm digests an array of data to get the right answer for each client. Gardner explained how differences across the tax code at the state and local level make determining the highest after-tax yield a complex problem.

Titan’s AI was essential in quickly and accurately processing that information, making it easy for the platform to deliver personalized results to its users.

Smart Cash doesn’t only focus on high yields; it also ensures there are no hidden taxes or fees. As Gardner explained, the only cost associated with Smart Cash is the underlying expense ratios already included in the yields. Users are asked about their state of residence, filing status and household income, which determines their overall tax brackets and the best investment options.

As for how Titan plans to sustain the product, given it’s mostly free outside of the underlying expense ratios, Gardner shared that the company's mantra is not to charge clients for anything they could do themselves.

With the value Smart Cash provides, Titan is betting on users adopting other products on their platform where they do generate revenue, making Smart Cash a potential customer acquisition tool.

In the face of a "higher for longer" interest rate environment, Smart Cash serves as an excellent tool for capital preservation, investing in short-dated U.S. Treasury bills and FDIC-insured bank account cash sweeps.

The strategy ensures no real risk of principal loss unless the U.S. government defaults on its debt.

Looking forward, Gardner sees Smart Cash as an important extension of Titan’s mission to provide sophisticated managed products for the everyday investor. With a focus on investing, Titan aims to create an environment where all an investor needs to decide is how much they want to invest and when with Titan handling the rest.

Read Next: Will The Fed Pause In September? 5 Economists Break Down The Signals From Falling Inflation In June