Part 2 of our “Top 5 reasons financial institutions contact Plinqit” series: You need to offset reliance on costly, non-core funding sources. Read Part 1.
When your bank or credit union’s funding mix leans too hard on expensive, short-duration sources, margins suffer. 
And so does strategic flexibility, because you’re painted into a corner with limited decision-making ability due to restricted paths to deposits. When you need to offset your financial institution’s reliance on costly, non-core funding sources, here are three things to keep in mind.
Understand the cost drag.
Leveraging brokered deposits or wholesale funding sources might help you meet short-term needs, but over time, they introduce margin volatility and concentration risk. That’s not a recipe for long-term stability. We recommend taking the following steps to fully understand the margin volatility and concentration risk.
- Do side-by-side cost comparisons of all funding sources, including wholesale, brokered, CDs, demand deposit accounts (DDAs), and High Yield Savings deposits.
- Model P&L under different scenarios, such as rising rates, reg changes, and deposit attrition.
- Bring key metrics – cost per dollar raised, retention, rollover risk – into your strategic review.
Consider the compromises associated with various deposit sources.
The problem isn’t how financial institutions are opening accounts online – a common initiative to drive growth. It’s not thinking through the compromises. Pushing for online checking account openings generates only about $350 per year in revenue for a large portion of checking accounts, which is the average cost to manage and maintain that relationship. And it comes with increased fraud risk, low engagement, resources drain, technology demands, downstream costs, training needs, and marketing requirements.
Elevate your deposit strategy with a proven deposit engine for better yield and better quality.
This is where High Yield Savings by Plinqit fits in. Rather than chasing volume, this strategy attracts high-quality, sticky deposits – goal-based, digitally acquired, and averaging more than $40,000 per account. Here’s how High Yield Savings amplifies your goals.
- Higher yield, lower cost. High Yield Savings customers are intentional savers, not chasing sign-up bonuses.
- Digital-first without heavy investment. High Yield Savings white-labeled brand integrates into your existing brand and core systems, reducing operational overhead.
- Foundation for strategic expansion. High Yield Savings by Plinqit is fuel for launching a digital sub-brand or targeting growth segments using deposits as a launchpad.
Use a digital-first approach like High Yield Savings by Plinqit as a cost-effective form of liquidity.
