A leading provider of digital transformation solutions for banking and lending, Q2 (QTWO), has provided an update on the rapid expansion of its fintech partner ecosystem since launching the Q2 Innovation Studio in June 2021, quadrupling the number of fintech partners and deployments to financial institutions since launch. More than 80 fintech partners have selected Q2’s digital banking platform to integrate with to offer their fintech solutions to financial institutions. More than 245 banks and credit unions have leveraged the Q2 Innovation Studio to extend their digital banking platform and partner with these innovative fintechs, such as Glia and Deluxe.
“The Q2 Innovation Studio has been a game-changer for financial institutions and fintechs. The level of growth and success we’ve seen has been outstanding”
Built on Q2’s flexible, modern and open digital banking platform, the Q2 Innovation Studio enables financial institutions to innovate faster to meet their account holders’ needs and expectations while providing fintechs access to a vast network of approximately 450 banks and credit unions, and approximately 20 million account holders and members. The Q2 Innovation Studio also offers programs designed to help fintechs and other technology providers to increase sales velocity and minimize customer acquisition costs with one single integration with the Q2 platform, including built-in marketing and sales support. More than half of Q2’s digital banking customer base is leveraging the Q2 Innovation Studio programs, and nearly 1,000 external developers from customers and partners are innovating on the Q2 platform.
“The Q2 Innovation Studio has been a game-changer for financial institutions and fintechs. The level of growth and success we’ve seen has been outstanding,” said Jonathan Price, executive vice president of Emerging Businesses, Corporate & Business Development, Q2. “Q2’s industry-leading digital banking platform and Innovation Studio enable financial institutions to deliver innovative, personalized digital banking services while seamlessly integrating with third-party fintech solutions. In Q1 2022, over 80 percent of our net new digital banking customers cited Q2 Innovation Studio as a key factor in choosing Q2’s digital banking platform.”
“We’re giving small businesses the ability to streamline and modernize their once-complicated processes and systems,” said president of Payments for Deluxe HR & Payment Solutions, a partner of the Q2 Partner Marketplace, Michael Reed. “Leveraging Deluxe’s integration with Q2’s digital banking platform, financial institutions are helping thousands of small businesses automate payroll, tax payments, hiring, and other HR offerings. Q2 Innovation Studio has allowed us to move faster than ever, with scalability we’ve never been able to provide before.”
“We owe a special thanks to our partners at Q2 who created the Innovation Studio that is transforming how we leverage technology to connect with our members. The Q2 team are rockstars – together, we’re strengthening the communities we serve!” said vice president and chief digital officer of Visions Federal Credit Union, a Q2 Innovation Studio customer, Tom Novak. Q2 has helped Visions triple the speed of its innovation lifecycle and saw an increase in adoption of financial management tools by members from 1,500 to more than 40,000, and approximately 14,000 Visions members have enrolled in credit score services through the Innovation Studio.
Key customer benefits of the Q2 Innovation Studio include the following:
Enable faster innovation and differentiated experiences – Q2 Innovation Studio, powered by Q2’s Digital Banking Platform, which includes more than 1,000 extensions, enables banks and credit unions to customize and provide personalized services rapidly to meet the evolving demands of their account holders. By taking advantage of new fintech innovations, banks and credit unions can increase account holder engagement, satisfaction, and retention, and drive new customer acquisition.
Scale and extensibility beyond in-house resources – Financial institutions gain access to a broader development ecosystem by leveraging Q2 certified third-party developers to supplement in-house resources and significantly increase the speed of delivery of differentiated services.
Increased speed to market and cost savings – Through the Q2 Partner Accelerator programme, banks and credit unions can provide innovative fintech solutions related to the financial journey of end-users by selecting and rapidly deploying pre-integrated apps. These integrations do not require Q2 Product and Development resources, resulting in increased speed to market. Financial institutions can work with these partners to purchase their solutions and rapidly deploy the standardized integrations.
A new economic model for FIs to generate non-interest income – The Q2 Partner Marketplace combines the best of digital banking and e-commerce by creating an app store-like experience that allows financial institutions to evaluate, select and deploy from a catalog of pre-integrated third-party products with no up-front investment. This unique economic model enables financial institutions to offer these products through an end-user purchase model in the Marketplace, opening opportunities to generate non-interest income. For the account holders, they can purchase consumer and small business apps and have them immediately deployed in their online banking dashboard.
