Q2 and ALTR Leverage the Blockchain to Boost Data Security

Hot on the heels of its Finovate debut earlier this month, blockchain-based data security platform ALTR has teamed up with digital banking solutions provider Q2 to unveil a new solution to improve data security.

The new technology, Q2 TrustView, powered by ALTR, adds to Q2’s approach to data management and protection by mitigating security breaches in real time. The solution protects critical data by fragmenting personally identifiable information (PII) across a private, low-latency blockchain, and makes data-at-rest unusable to unauthorized parties. Q2 TrustView powered by ALTR also gives authorized users a comprehensive insight into who accesses sensitive information, as well as data on when and how frequently that data is accessed.

“Great financial experiences are built on a foundational confidence and trust that an account holder’s data will be protected,” Q2 CTO Adam Blue said. “With Q2 TrustView, we are strengthening our data management approach to ensure that protections are in place for our customers and their users at every step of the data journey.”

ALTR CEO Dave Sikora praised Q2’s leadership in a “highly-regulated industry,” and said it was a “powerful validation of the confidence (that) banking and lending institutions” have in his company’s technology. He added, “Data is critical to these institutions, and the integration of ALTR’s smart driver and blockchain technologies into Q2 TrustView reinforces Q2’s approach to data security, privacy, and governance by implementing a critical human error countermeasure.”

Founded in 2004, Q2 demonstrated its Biller Direct solution at FinovateSpring 2018. Biller Direct enables consumers to aggregate their bills and pay them via credit or debit card. The solution both improves the billpay experience for consumers and gives financial institutions the opportunity to earn interchange revenue in the process.

We highlighted Q2 earlier this year in our look at how banks can compete with the new credit card from Apple. The company closed out 2018 with the acquisition of fellow Finovate alum, Gro Solutions.

Making its Finovate debut less than a month ago at FinovateSpring, Austin, Texas-based ALTR was founded in 2014 to help businesses leverage blockchain technology to change the way data is monitored, accessed, and stored. The company announced in April that its technology had earned Level 1 Service Provider accreditation for the latest version of the PCI DSS (Payment Card Industry Data Security Standard). In February, ALTR partnered with IT solutions integrator Sirius Computer Solutions to provide its blockchain-based data security as a managed service.

Named one of Built in Austin’s 50 Startups to Watch in 2019, ALTR has raised $15 million in funding.

Finovate Alumni News

On Finovate.com

  • Q2 and ALTR Leverage the Blockchain to Boost Data Security.
  • Neustar Helps TELUS Fight Caller ID Spoofing.
  • Fintech OS Raises $1.2 Million.
  • Personetics Unveils AI-Enabled Small Banking Solution.
  • SparkPost Launches Predictive Email Intelligence Platform.

Around the web

  • Meniga opens an office in Barcelona, Spain.
  • Coinbase extends support for USD Coin (USDC) trading in 85 countries.
  • Finastra hires Mark Miller as new Chief Financial Officer.
  • Fenergo announces API integration with global financial markets data provider Refinitiv.
  • Hastings Direct extends deal with Equifax by signing a multi-year deal.
  • SDC and Tink partner to give 120 Nordic banks access to account aggregation and payment initiation services.
  • Kony Quantum powers Qualifacts’ new CareLogic mobile app.
  • WireBarley partners with Currencycloud to boost its operations in the U.S.
  • Lendio named to Fortune’s Best Workplaces in Financial Services & Insurance.
  • BlueVine taps Herman Man as new Chief Product Officer.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Yes, Banks Can Compete with Apple’s New Credit Card

What’s in your wallet? Or rather, what’s in banks’ clients’ wallets? Some sexy competition appeared on the market yesterday, as Apple announced the pending launch of its own credit card in collaboration with Goldman Sachs and Mastercard.

The card is touted more for its mobile and digital qualities than its shiny titanium finish. Despite the shine, however, many of the card’s features and offerings aren’t new. And that’s good news for banks. While traditional financial institutions aren’t as sexy as tech companies such as Apple, they are generally viewed as more trustworthy. And with that kind of foundation, all banks need to do is piece together the features into their own credit card offering and market it properly.

Fortunately, there are plenty of fintech firms out there to help. Here are some of the features Apple is promoting and a list of corresponding fintechs that can help banks take the same approach.

Physical card security

Apple boasts a titanium card with the customer’s name etched on the front– no credit card number, no cvv code, no expiration date. All of that information is tucked away inside the app. Physical card innovator Dynamics takes a similar (though admittedly less visually appealing) approach. The Pennsylvania-based company offers a computer-in-a-card that hides part of the card number, the cvv code, and expiration date on the physical card until the consumer enters their PIN into the card. As an added bonus, Dynamics also offers in-card loyalty and rewards features, as well as a card that hosts multiple numbers, allowing customers to toggle between debit and credit cards.

Chat functionality

As a company that is known for simplifying technology, Apple is taking a similar approach with its customer service. “Have a question? Just text,” is the message the company features on its card website. Fortunately, there are plenty of fintechs that help banks simplify their customer experience. Two such companies are Finn.ai and Clinc, both of which leverage AI to save banks money on customer service representatives, while simplifying and expediting access to answers via a chat interface.

PFM

One way to win over customers is to convince them you’ll help them organize their finances and ultimately save them money. That’s why Apple is offering in-app PFM capabilities. And while the technology hasn’t changed much since it debuted before the fintech craze, the colorful user interface is beautiful enough to convince anyone to want to look at their spending behavior.

Banks have seemingly endless options to compete with this feature. And while most financial institutions currently offer some sort of PFM capabilities, it’s worth looking at it from a superficial point of view. Utah-based MX and Sweden-based Tink both offer visually-pleasing interfaces that are arguably more beautiful than Apple’s and are backed by powerful PFM engines.

Mobile app security

Apple’s iPhone holds the hardware for both fingerprint and facial recognition technology, and since the company is reinforcing its focus on security, it is leveraging biometrics for account access. With the right software, banks can leverage fingerprint and facial recognition technology as well. Jumio, IDology, and Mitek all offer technology banks can implement for fast account access, as well as account onboarding.

Fast onboarding

With access to consumer data, Apple has an advantage of being able to quickly onboard new consumers using existing consumer information. There are multiple fintechs that help banks onboard consumers quickly, as well, including Digital Onboarding, Q2’s Gro Solutions, and Fenergo. Digital Onboarding motivates customers to open new accounts using incentives and gamification. Gro Solutions touts the ability for customers to open and fund accounts in under four minutes. And Fenergo takes a holistic approach to onboarding, providing banks a lifetime view of the client to help perform data refreshes, ongoing due diligence, and upsell and cross-sell opportunities.

Rewards

Credit card rewards programs may seem like a feature of the past, but rewards are certainly still relevant. With its new card’s rewards program, Apple once again seeks to simplify things by offering consumers daily rewards. Two fintechs, Cardlytics and Cartera Commerce, offer tried and true loyalty and rewards programs. These offerings not only boost consumer loyalty, they also offer banks further insight and analysis into consumer spending.

Apple’s new credit card is shipping this summer. Fortunately for banks, fintechs are here to help them compete.

Finovate Alumni News

On Finovate.com

  • Europe Bets on Bug Bounties, HackerOne to Fight Fraud.

Around the web

  • The Fintech Times reviews identity verification innovator Onfido in the wake of its “strongest year to date.”
  • Infosys Finacle to partner with Santander U.K., facilitating the integration of cash management solutions into existing ERP systems.
  • Diebold Nixdorf names Jeffrey Rutherford as its new permanent Chief Financial Officer, Julian Sparkes as SVP and Chief Digital Officer, and Hermann Wimmer as SVP, Global Retail.
  • Cloud Wars with Bob Evans interviews Q2 CIO Lou Senko.
  • Chesapeake Bank’s alternative lending division, Cash Flow, adds the Commercial Lending Center Suite from Jack Henry & Associates‘ ProfitStars division.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Q2 Acquires Gro Solutions

Digital banking solutions company Q2 Holdings boosted its capabilities this week with the acquisition of account opening technology provider Gro Solutions. This follows Q2’s purchase of Cloud Lending Solutions in August, making it the Austin-based company’s fifth acquisition since it was founded in 2004.Terms of the deal were not disclosed.

“With Q2’s recent acquisitions of Cloud Lending and now Gro—combined with our leading, secure digital banking platform—we are delivering powerful solutions for the financial services vertical to provide exceptional experiences needed to keep pace with the high expectations of today’s account holder,” said Matt Flake, CEO of Q2. “Our acquisition of Gro adds yet another element that helps our customers reduce user friction, increase engagement in the digital channel and expand their offerings.”

Once the acquisition closes, Q2 will benefit from Gro’s omni-channel account opening technology, Gro Checkout, which CEO David Eads launched at FinovateFall 2015. Q2 will also boost its portfolio with Gro’s other solutions, including Gro Funnel, a set of marketing automation and CRM tools; Gro Business, tools for business clients; and Carrier Data Integration, technology that leverages information from a customer’s wireless billing record to auto populate data fields.

“As a combined force, we look forward to providing leading account opening, ecommerce and end-to-end digital financial solutions to banks, credit unions and other financial technology companies,” said Eads. “We are delighted to be joining the Q2 team and look forward to delivering best-in-class in financial digital sales and marketing solutions.”

Gro Solutions most recently demoed an extension of its digital sales platform at FinovateFall 2017. The company had raised $4.3 million since it was founded in 2015. Gro has been named a Fintech Company to Watch by American Banker and was recently awarded the TAG Fintech Advance Award.

Q2 debuted Q2 Biller Direct at FinovateSpring earlier this year. The company had 2017 revenues of $194 million, has 10.4 million end users, and 382 bank and credit union customers. Matt Flake is CEO.

Finovate Alumni News

On Finovate.com

Around the web

  • Finicity CEO Steve Smith honored as a 2018 HousingWire Vanguard.
  • Ohpen launches the Ohpen API Portal (OAP) in beta.
  • PYMNTS talks with Entersekt SVP of Product Niel Bester about consumer trust.
  • Kony teams with PSECU to deliver digital banking technology.
  • Hudson River Financial FCU selects Digital Onboarding to enhance new member experience with updated onboarding

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Cardlytics Hooks Wells Fargo as Partner.
  • Daon Helps New Zealanders Create Digital Identities.

Around the web

  • FreeAgent earns status as an official Account Information Services Provider (AISP) from the U.K.’s Financial Conduct Authority.
  • Two-time Best of Show winner Trunomi teams up with Shyft and BurstIQ to provide an eIdentification solution for online and offline authentication.
  • Temenos partners with Luxhub to help ensure PSD2 compliance for Fortuna Banque.
  • The Australian Military Bank becomes the first FI in the country to commit to SaaS cloud banking with their deployment of Infosys’ Finacle solution.
  • Q2 releases Caliper SDK to enable customers to customize and extend the Q2 platform
  • Figure Eight launches machine learning assisted video object tracking solution to accelerate the creation of training data.
  • CWG to launch Entersekt product line into Nigerian market.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Dynamics’ Battery-Powered Cards Hit Japan.
  • Q2 to Acquire Cloud Lending Solutions.
  • Onfido Helps TransferGo Onboard New Users Faster.

Around the web

  • OnDeck reports record net income for second quarter, credits asset growth and margin expansion.
  • Outsystems announces record-breaking quarter across all key business metrics, including a 63% gain in annual recurring revenue for Q2.
  • Varo Money to deploy Temenos’ T24 core banking system.
  • Ondot partners with PSCU, the premier payments credit union service organization to provide its card alerts and controls technology.
  • Tuition.io partners with Carhartt to help employees pay down student debt.
  • App Annie selected for JMP’s Hot 100 Best Privately Held Software Companies of 2018.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • SecuredTouch Receives $8 Million Strategic Investment from Arvato Financial Solutions.
  • Unison Sees 1,000% YoY Growth in Originations.

Around the web

  • IdentityMind Global partners with Etherparty Smart Contracts to provide KYC and AML compliance support. See IdentityMind Global at FinovateSpring next month.
  • Intesa Sanpaolo Private Banking Suisse to deploy Business Process as a Service (BPaaS) solution from Avaloq.
  • Finastra goes live with its blockchain-based syndicated lending market solution, Fusion LenderComm.
  • Forbes interviews Andrea Gellert, CMO of OnDeck.
  • Ebay And PayPal finalize new payments agreement.
  • Listrak and Persado announce strategic integration.
  • Q2 and StoneCastle partner with MoneyLion to offer deposit accounts and debit cards.
  • EverTrust Bank hires Insuritas to launch digitally powered insurance agency.
  • Backbase powering SSF Bank’s new mobile banking application.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinovateSpring Sneak Peek: Q2

A look at the companies demoing live at FinovateSpring on May 8 through 11, 2018 in Santa Clara, California. Register today and save your spot.

Q2 Biller Direct is a new billpay solution that enables card payments to dramatically improve the user experience and economic model of billpay.

Features

  • Card payments generate interchange revenue for every bill paid
  • Modern user experience features bill aggregation and push notifications
  • API allows ultimate flexibility for development and integration

Why it’s great
Biller Direct uses card payments to turn billpay from a cost center to a revenue generator.

Presenter

Rahm McDaniel, VP of Strategic Solutions
McDaniel is an entrepreneurial sales and marketing executive with 19 years of experience leading complex, cross-functional initiatives. He currently serves as Q2 Open’s VP of Strategic Solutions.
LinkedIn