Three Takeaways from Money 20/20
Three Takeaways From Money20/20: Rethinking Deposit Strategy
Money20/20 brought conversations about the next wave of fintech launches and the deposit strategies needed to support them. Three themes stood out to the Cambr team.
- The best time to plan for off-balance sheet is before you need it.
Many teams are preparing to launch new programs, from consumer savings to prepaid cards and HSAs. A common mistake is waiting until deposits arrive to figure out an off-balance-sheet strategy.
The programs that launch smoothly have their sweep strategy in place before day one, not after balances start to grow. - Redundancy is becoming part of deposit strategy.
Banks are rethinking their deposit mix across commercial, B2B, and public funds. That raises an important question: What happens if your only network reaches its limit?
A second network is increasingly less of a nice-to-have and more of a fundamental part of risk management. - Sweeps aren’t just for neobank savings accounts.
Prepaid cards, HSAs, and high-yield savings programs are expanding the range of products that need a deposit strategy. As new programs emerge, off-balance-sheet solutions are becoming relevant well beyond traditional neobank savings accounts.
Looking Ahead
Deposit strategy is no longer a decision to make after a program launches. Planning ahead, understanding new use cases, and building in resilience can help programs prepare for growth.
The conversations at Money20/20 reinforced the importance of getting that strategy right from the start.
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