Plinqit’s new white paper reveals proven tactics for financial institutions to attract & retain depositors
ANN ARBOR, MI (June 21, 2023) — Plinqit, the first platform that brings together automated savings, data-driven financial wellness content and virtual account management, has published its newest white paper, “How To Attract and Keep Long-Term Deposits.” The white paper addresses the top challenges financial institutions face in the current market and the problems with traditional deposit growth tactics, and it offers several alternative strategies for attracting long-term depositors.
Traditional deposit growth tactics, such as offering the highest interest rate on CDs, have notable downsides, including increased cost of funds and the risk of cannibalizing existing deposit relationships. Instead of relying on higher-interest products, Plinqit’s latest white paper explores how fintechs can help financial institutions earn sticky, long-term deposits and attract and retain more valuable customers over time. The white paper also reveals the benefits of using financial wellness programs and savings tools to help customers improve their financial habits and work toward their savings goals, resulting in higher account balances overall.
In addition to financial wellness programs, some institutions are rolling out digital-only, affinity brands to expand into new markets on a national scale and acquire deposits. The white paper examines this trend in detail and offers best practices for institutions that choose to establish a separate digital brand. By applying the strategies outlined in Plinqit’s white paper, financial institutions of all sizes gain an unmatched opportunity to earn more deposits while empowering customers to save and consider other financial products offered by their institution in the future.
“Deposit competition is fierce and many bank executives predict it will only get worse through the remainder of the year. To compete, many institutions are relying on conventional tactics, like hiking rates on deposit products and joining the CD rate wars,” said Kathleen Craig, founder and CEO of Plinqit. “While this may bring in immediate deposits, if your institution’s goal is to generate sustained profits, it is important to consider different levers for deposit growth. A solid and diversified deposit growth strategy goes beyond just acquiring short term deposits and should also attract more valuable, engaged customers who are looking to do business with an institution for the long haul, not just until the next-best offer comes along.”
Craig continued, “We created this resource to support financial institutions striving to generate deposits in a way that aligns with their long-term growth goals. The institutions that find ways to attract and engage customers while helping them improve their finances will come out on top, both today and through the next economic cycle.”
To read the full white paper, visit Plinqit’s website and download your free copy today.
About Plinqit
Plinqit is a mobile-first platform and fintech company helping banks and credit unions generate deposits, attract new customers, and expand their retail footprint while helping people live their best financial life. The Plinqit platform is the first savings platform of its kind to bring together automated savings, data-driven financial wellness content, and virtual account management. At Plinqit, we're helping everyone Money Intelligently™. For more information, visit info.plinqit.com.
