Kirsten Longnecker, CMO at Plinqit talks about the latest in fintech and how Gen Z is shaping a new era for the global fintech market in this Q&A:
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Hi Kirsten, please tell us about your fintech journey and time as CMO of Plinqit.
I got my start in fintech leading B2B marketing, content, and communications for Kasasa for nearly a decade. From there, I moved into my role at Plinqit, where I started as Vice President of Marketing. Working in service of banks and credit unions aligns with my values of helping real people make the best financial choices with trustworthy financial knowledge.
At Plinqit, our mission is to build technology that changes people’s financial future. We do that by making savings rewarding for users while also helping banks and credit unions generate deposits and reinforce relationships with account holders. As CMO, I have the privilege of contributing to the growth of our innovative savings platform and high-yield savings product.
One of the most challenging and, therefore, fulfilling aspects of my role is developing and implementing marketing strategies that resonate with bank and credit union executives. And for financial institutions’ end users, Plinqit’s Marketing and Client Success teams strive to educate consumers about the hows, whys, and “how fun!”s of saving and how it can help them build better financial futures.
Plinqit’s product suite makes a meaningful difference for consumers and the institutions they bank with, which is part of what attracted me to the company in the first place. (The other part was the opportunity to work in a female-founded and -led company that’s mission focused.) Banks and credit unions play such an important role in the communities they serve, and with the right tools and partner, they can help people put their best financial foot forward. Building visibility of the Plinqit brand through relevant and, hopefully, magnetic thought leadership content gives back to me as much or more as I contribute. And I love supporting a visionary leader like our founder and CEO, Kathleen Craig.
The fintech industry is constantly in motion, and I’m honored to be part of a company that’s at the forefront of innovation in savings and deposit generation tools. As we further our offerings, I’m excited about the potential to empower more financial institutions to attract new customers and support those customers on their journey toward financial success.
Take us through some of Plinqit’s latest fintech enhancements and how it’s enabling end users?
One of our most exciting recent developments is the launch of High Yield Savings by Plinqit (HYS). It’s a game-changer of a product for financial institutions looking to drive new, high-growth deposits. HYS is a fully white-label solution that allows banks and credit unions to quickly establish a digital brand or an affinity brand offering attractive interest rates to customers.
Here’s why this is such a meaningful product innovation. The top high-yield savings accounts offer annual percentage yields (APYs) that are more than 10 times higher than the average rate of traditional savings or checking accounts. Yet only 20% of people are using a high-yield savings account. Our 2024 State of Savings Report also revealed other insights that could positively impact their business if they take advantage of the opportunity, such as just over half of Americans (54%) who do not currently use high-yield savings accounts said they are likely to open one in the future.
These findings bring to light a hidden-gem opportunity for the financial institutions that capture the business of smart savers. To attract that business, many banks are exploring a digital bank brand to drive deposit growth and market share.
A digitally focused brand featuring a single deposit product with a competitive interest rate, like a high-yield savings account, has proven to be extremely effective in attracting new deposits while reducing the risk of cannibalizing existing ones. Banks that have collaborated with Plinqit to develop a digital affinity brand and drive deposits using our white-label high-yield savings solution have seen massive success.
Our data shows that 42% of individuals enrolled in High-Yield Savings by Plinqit have a household income of $100,000 to $249,999 and an average balance of more than $40,000. These are customers that banks want to attract and retain, and it’s exciting that High Yield Savings by Plinqit is such a simple but effective growth lever.
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How are you seeing AI change the way the global fintech market is shaping up?
As a marketer, I’m most excited about the potential for enhanced personalization in financial services but also for the increased efficiency it can provide for repetitive operations. AI can enable increasing levels of personalization in financial services by analyzing user behavior and financial patterns. Offering tailored savings recommendations and custom financial education content to account holders efficiently, for example. And then there’s natural-language chatbots and virtual assistants that are also transforming customer service. Many banks and credit unions are already investigating ways to integrate these technologies to provide 24/7 customer support and enhance engagement.
As regulatory guidance around the use of AI becomes more defined, I have no doubt our industry will realize the potential of machine learning to drive financial inclusion and empower users to achieve their financial goals more effectively, whether that’s through personalization or automated customer support and product recommendations or something we haven’t yet considered. But I also have felt that “what jobs might this eliminate” encroachment, and I’ve come to the conclusion that there is nothing that can replace the human brain when it comes to creative problem solving, communication, and connection. AI is really an assist, not a replacement for bank staff, as there will always be a need for a human touch in banking.
What about the current state of fintech trends and adoption patterns most interests you?
As someone who has been in fintech long enough to witness the effects of the contraction and expansion of the economy on financial institutions and their communities, it’s clear that most people struggle to navigate periods of economic volatility. Right now, inflation has made it challenging to save, and more Americans are relying on credit to make ends meet. And the higher interest rate environment we were in for the past couple of years ramped up competition for deposits among banks. I am sympathetic to the tradeoffs that each cohort has been forced to make.
It makes me especially interested in trends and technologies that help address both of these challenges. I think Plinqit is well positioned to serve both financial institutions’ and consumers’ challenges. Digitally driven savings under a new brand can empower banks to promote a more financially inclusive future, even outside their traditional branch network. And automated savings that’s buoyed up by gamified financial wellness education encourages all savers. I’m particularly excited about the potential of high-yield savings products, like our own, to democratize access to better interest rates across all income levels. This trend, combined with the growing integration of financial education within fintech and banking platforms, is empowering more individuals to take control of their financial health and build a stronger economic foundation for themselves and their communities.
Closer home at Plinqit, how are you seeing demand for new fintech features influence the market and adoption of Plinqit’s software?
I believe Americans are looking for more financial support following the challenges brought by the pandemic, inflation, and recent historically high interest rates. Typically, people have been rewarded for spending in the form of credit card points and cash back offers. U.S. credit card debt rose by $27 billion to $1.14 trillion in Q2 2024, which shows that consumers are increasingly relying on credit for daily expenses and likely accumulating rewards for it. But long term, these types of incentives do not set people up for lifelong financial wellness. And when consumers are not financially healthy, it negatively impacts the banks and credit unions that serve them.
The industry realizes this, as consumers have escalated their desire to save more and banks are looking to shore up deposits. This has driven adoption of Plinqit’s high-yield and automated savings offerings. To date, banks using High Yield Savings by Plinqit product have generated more than $2.5 billion in deposits. These account holders are reaping the rewards of high returns on their savings, which is infinitely more impactful for one’s financial future than accumulating points with a credit card.
What near term product plans can you share with regards to Plinqit’s upcoming journey?
In the near future, we’re focused on expanding our offerings in a way that furthers Plinqit’s mission of providing financial institutions with deposit generation tools that support their customers’ wellbeing. Our goal is to set our organization up for the next phase of growth, as we’ve seen strong demand for High-Yield Savings by Plinqit since its launch. Given the strong demand from financial institutions of all sizes, we are prioritizing enhancements to our product suite to ensure it continues to meet the ever-changing needs of consumers, especially as younger generations progress along their financial journeys, and the banks that support them.
A few thoughts on the future of fintech before we wrap up?
I’m excited about the future of fintech, particularly as Gen Z continues to shape the industry. This digital-first generation is leading significant changes in financial services, pushing for more personalized, transparent, and technologically advanced product offerings and access.
We’re seeing a shift towards hyper-personalized financial products play a crucial role in tailoring services to individual needs. Gen Z’s preference for intuitive, mobile-intelligent, instant-gratification experiences is accelerating this.
Moreover, Gen Z’s strong focus on social and environmental issues is influencing the industry’s direction and how financial institutions market themselves. We anticipate a growing emphasis on sustainable and ethical financial products, as well as increased transparency in how banks and credit unions operate. As fintech evolves, we’ll likely witness a blend of secure banking with innovative digital solutions, catering to Gen Z’s desire for both convenience and trust. At Plinqit, we’re committed to staying ahead of these trends, ensuring our products meet the needs of all generations, especially the tech-savvy Gen Z who will undoubtedly play a pivotal role in shaping the future of financial services.
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[To share your insights with us, please write to psen@itechseries.com ]
Plinqit is a smart savings tool, enabling you to: -Securely link your Plinqit account to your financial institution (bank or credit union) account. – Set a savings goal in Plinqit. – Automatically set aside a small amount of money at a rate and schedule you choose. – Earn money by using Plinqit to reach your goal.
Kirsten Longnecker, is CMO at Plinqit
