Moven and Q2 Team Up on Bank-in-a-Box Initiative

A turnkey digital bank-in-a-box that can be deployed in as little as 30 days? That’s the product of a new partnership announced this week between a pair of Finovate alums: data-driven financial wellness innovator Moven and digital banking services provider Q2.

“Working with Q2 allows banks of all sizes to accelerate their consumer facing digital offering,” Moven CEO and CRO Kesh Talwar explained. “Having a complete view of customer financial behavior, along with Moven’s data analytics, will increase contextual customer engagement. He added that better customer engagement will lead to “lower attrition rates, increased revenues and acquiring new customers digitally at a lower cost.”

Initially, the collaboration will focus on the integration of Moven’s data aggregation and savings tools with Q2’s cloud-based core processor, CorePro. This will enable them to offer banks and credit unions an instant deployment solution with real-time alerts and notifications, as well as account issuance for savings and demand deposits accounts. The offering also includes features such as instant external account verification, wishlist savings, and an emergency account.

“We are thrilled that Q2’s CorePro system was selected by Moven to power this initiative,” GM of Q2 BaaS Paul Walker said. “Now any bank can have its own Marcus or Chime in a matter of a few weeks.”

The partnership is the latest evidence of Moven’s shift toward leveraging its financial wellness and behavioral data technology and away from the direct to consumer / neobank model of years past. Fintech expert and advisor Bryan Clagett, who approached both Moven and Q2 over the summer to discuss compatibilities between the two firms, underscored the importance of this strategy. “Digital banking, as we know it, is evolving quickly,” he said “and bringing together fintechs organizations that have complementary competencies is key to the future of the financial services industry.”

Founded in 2011 and becoming a Finovate alum after its debut at FinovateEurope two years later, Moven announced a partnership with Saudi Arabia’s STC Pay this spring. The New York-based company has raised more than $47 million in funding, and includes TD Bank and SBI Group among its investors. Brett King is founder and executive chairman. In a statement, King highlighted the significance of his company’s partnership with fellow Finovate alum, Q2.

“We started as a challenger bank in the U.S. market before collaborating with banks and FIs around the world, so we understand what it takes in the post-COVID digital world to stand out,” King said. “The Q2 alliance is our first major core partnership in the U.S., and no doubt will set a steep benchmark for other providers in the space.”

Headquartered in Austin, Texas, Q2 has become one of the leaders in the embedded finance movement, offering a range of digital financial solutions for consumers, business clients, and fellow fintechs. The company won a Best of Show award at FinovateFall in September for its Partner Marketplace, an app store that is integrated within the client’s digital banking platform.

Q2 is publicly traded on the New York Stock Exchange under the ticker QTWO, and has a market capitalization of more than $5 billion. See them next week as the company returns to the Finovate stage to demo its latest technology at FinovateWest Digital.


Photo by Porapak Apichodilok from Pexels

FinovateWest Digital 2020 Sneak Peek: Q2

A look at the companies demoing at FinovateWest Digital on November 23 through 25, 2020. Register today and save your spot.

With Q2 dynamic personalization, your institution can quickly and easily tailor your user’s experiences based on the intersection between known data points and your institution’s objectives.

Features

  • Dynamically composed experiences
  • Fluid audience grouping
  • Targeted UI presentation

Why it’s great
Digital is today, personalization is tomorrow. Through dynamic personalization you can improve your relationship with accountholders and understand their needs.

Presenters

Adam Blue, CTO
As CTO, Blue is responsible for creating and coordinating the company’s technology strategy, while supporting the teams at Q2 responsible for customer satisfaction and technology innovation.
LinkedIn

H.O. Maycotte, CEO, Molecula
Maycotte is the CEO of Molecula, an enterprise future store that centralizes data for machine-scale analytics and AI.
LinkedIn

At Your Service: A Look at Q2’s “As-a-Service” Offerings

In today’s era of embedded finance, everything is available as a service. Digital banking services company Q2 is at the leading edge of this trend, offering a range of solutions for banks’ retail clients, their commercial customers, and fintechs.

Many fintechs sell an “as-a-service” offering that focuses on a single aspect of banking. Q2, however, takes a more holistic approach. Here’s a look at some of the company’s embeddable offerings.

Q2’s consumer solutions include remote onboarding, PFM tools, remote deposit check capture, lending tools, marketing offers, behavioral biometrics, and authentication. The company helps banks leverage client data using machine learning technology that brings the necessary intelligence to effectively market new products to customers.

On the commercial side of things, Q2 can aid with account opening, loan origination, ERP integration, and scalable tools to suit a range of business sizes.

Q2 offers fintechs both lending-as-a-service and banking-as-a-service tools to integrate into their existing offerings. The former focuses on the application, approval process, and loan funding, while the latter offers bank accounts, debit cards and payment solutions without the need to partner directly with a traditional bank.

In addition to these embedded finance offerings, Q2 is venturing into the bank-fintech collaboration space. In a Best of Show winning demo at FinovateFall last month, Q2 launched its Partner Marketplace, an app store integrated within the company’s digital banking platform. Fintechs can upload their tools on the platform’s app store and banks can browse the offerings they’d like to integrate.

By relying on fintechs to bring the tech, the Partner Marketplace broadens Q2’s reach as a provider of embedded finance. The company offers banks access to a variety of fintech solutions that range beyond what Q2 itself is able to create or provide.

For fintechs, the marketplace lowers customer acquisition costs by making the startups’ solutions visible to Q2’s network of bank partners on the platform. It also helps with integration and deployment– after integrating with Q2’s digital banking platform, fintechs can offer their product to 400+ banks and credit unions, one million businesses, and 16+ million end users.


Photo by KOBU Agency on Unsplash

FinovateFall Digital 2020 Best of Show Winners Announced

Digitally or in-person, the live fintech demos continue to be one of the most popular and worthwhile features of our fintech conferences. This year was no different. FinovateFall Digital featured fewer demoing companies than in years past to better accommodate our COVID-induced, all-digital format. But, as always, the quality of demos was absolutely on point.

With that, let’s take a look at the companies that our attendees have awarded with Best of Show trophies at this year’s event.


Finzly with its BankOS open banking platform that helps banks innovate at speed by transitioning away from legacy technology.

Horizn for its ability to help financial institutions accelerate digital adoption with customers and employees.

Lendsmart for its AI-driven technology that solves for the lack of automation, transparency, and communication in the lending process.

Monit for its finance application that gives small business leaders the insights and personalized guidance they need to manage their businesses successfully.

Q2 for its online digital marketplace that makes collaboration between fintechs and financial institutions easier and more efficient.


Thanks to all the companies that participated in FinovateFall Digital! And thank you, our FinovateFall Digital attendees, for making your voices heard and for being part of a very special event this year. We look forward to seeing many of you in a few months for FinovateWest!


Notes on methodology:
1. Only audience members NOT associated with demoing companies were eligible to vote. Finovate employees did not vote.
2. Attendees were encouraged to note their favorites during each day. At the end of the last demo, they chose their five favorites.
3. The exact written instructions given to attendees: “Please rate (the companies) on the basis of demo quality and potential impact of the innovation demoed.”
4. The five companies appearing on the highest percentage of submitted ballots were named “Best of Show.”
5. Go here for a list of previous Best of Show winners through 2014. Best of Show winners from our 2015 through 2020 conferences are below:
FinovateEurope 2015
FinovateSpring 2015
FinovateFall 2015
FinovateEurope 2016
FinovateSpring 2016
FinovateFall 2016
FinovateAsia 2016
FinovateEurope 2017
FinovateSpring 2017
FinovateFall 2017
FinovateAsia 2017
FinovateMiddleEast 2018
FinovateEurope 2018
FinovateSpring 2018
FinovateFall 2018
FinovateAsia 2018
FinovateAfrica 2018
FinovateEurope 2019
FinovateSpring 2019
FinovateFall 2019
FinovateAsia 2019
FinovateMiddleEast 2019

FinovateEurope 2020

FinovateFall Digital 2020 Sneak Peek: Q2

A look at the companies demoing at FinovateFall Digital on September 14 through 16, 2020. Register today and save your spot.

Your fintech product. Millions of users. One integration. Q2’s Q2 Partner Marketplace lets you offer your fintech products to more than 400 bank and credit union customers.

Features

  • Rapid partnership
  • Streamlined integration to over 450 financial institutions
  • Target end users through a trusted channel

Why it’s great
The path to partnering with financial institutions is hard. The Q2 Partner Marketplace makes it simple.

Presenters

Greg Varnell, VP Engineering
Varnell has worked in the technology arena for over 20 years. With more than ten years of experience at Q2, he is responsible for creating and growing the Q2 Caliper SDK team.
LinkedIn

Derik Sutton, VP Product & Experience, Autobooks
Sutton joined Autobooks in 2018 as Vice President of Product and Experience. As part of the executive team, Derik leads Autobooks’ product, design, and marketing execution.
LinkedIn

Q2 Closes Acquisition of PrecisionLender

Last week, Q2 completed its sixth acquisition since its 2004 launch. The digital banking services company closed the books on a $510 million deal to purchase PrecisionLender, a sales enablement platform.

“We are thrilled with the outstanding talent, culture and industry expertise the PrecisionLender team brings to the Q2 family,” said Q2 CEO Matt Flake. “We are also excited about the potential we have to help our customers improve margins, profitability and the quality of their relationship with their key accounts using our combined data insights and commercial banking solutions.”

Q2 will leverage PrecisionLender to further its corporate banking expertise and solidify its leadership in digital banking. Going forward, PrecisionLender will operate as Precision Lender, a Q2 company.

Q2 debuted Q2 Biller Direct at FinovateSpring 2018 and the company’s CIO Lou Senko made a cameo appearance in ALTR’s demo at FinovateFall earlier this year.

Finovate Alumni News

On the web

  • Zopa Tests Savings Product Before Full Launch.
  • Starling Bank Offers Income Protection Insurance Via Anorak Partnership.
  • Q2 Closes Acquisition of PrecisionLender.

Around the web

  • Revolut unveils metal cards in silver and space grey.
  • Chief Administrative Officer of the Royal Bank of Scotland interviews BioCatch CEO.
  • ITSector inaugurates 6th Software Development Center that will focus on the financial sector, AI, and 5G.

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

  • Zopa’s New Launch Gives Consumers the Best Rate.

Around the web

  • Tieto and EVRY announce operating structure for TietoEVRY after $1.5 billion acquisition.
  • Taulia launches AI-powered cash forecasting solution.
  • Tradeshift to power digital transformation for Abreon.
  • Q2 named a winner in the 2020 CSO50 Awards for Q2 TrustView.
  • Washington credit union iQ to leverage Alkami to create a personalized user experience.
  • Stratifyd named among Chralotte’s best places to work.
  • ProfitStars brings mobile remote deposit to ICBA member banks.

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

Around the web

  • Ephesoft forges partnership with RPA leader Automation Anywhere.
  • Visa launches its Visa Partner Portal to give fintechs greater access to its payments technologies and solutions.
  • Feedzai announces availability of its AI-powered Case Manager solution.
  • Collaboration between Q2 and Socure brings digital identity verification and fraud protection to Q2 Open’s CorePro cloud-based core processor.

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 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.