Q2 Reports More Than 100 Percent Growth in Financial Institution and Fintech Partnerships Through Q2 Innovation Studio
Consumer and business utilization of fintech solutions through financial institutions also increased by more than 100 percent
Q2 Holdings, Inc. , a leading provider of digital transformation solutions for banking and lending, today announced rapid year-over-year growth of Q2 Innovation Studio as a result of financial institutions’ increased need to attract, retain and grow customer relationships and deposits. Based on 2022 metrics, financial institutions procured more than 420 partner solutions, which is an increase of approximately 110 percent year over year. In addition, as of March 31, 2023, the number of consumers and small businesses utilizing fintech solutions through Q2 Innovation Studio has increased more than 100 percent year over year. Multiple financial institutions have reported generating $1 million or more in positive financial impact from Q2 Innovation Studio through a combination of non-interest fee income, cost savings and operational efficiencies.
“Financial institutions need to be fast and nimble to adapt to changing customer attitudes and needs, especially given the complex market environment,” said Executive Vice President, Strategy & Emerging Businesses at Q2, Jonathan Price. “We launched Q2 Innovation Studio to do just that: enable rapid innovation that helps financial institutions attract, retain and grow customer relationships.”
Q2 Innovation Studio, which includes more than 300 customers and 120 partners, is designed to significantly reduce cost and time by enabling the pre-integration of innovative fintech solutions in the Q2 Digital Banking Platform. Q2 Innovation Studio enables banks and credit unions to build more profitable and lasting customer relationships while providing a true marketplace that makes it much simpler for financial institutions and fintech companies to partner, and for account holders to quickly and easily adopt and leverage these solutions.
Q2 identifies emerging solutions categories that provide personalized customer experiences while increasing bank and credit union profitability and efficiency:
Financial wellness and literacy: In addition to Q2 solutions like Goals and contextual Personal Financial Management, banks and credit unions have partnered with companies like Zogo, SavvyMoney and Experian® to provide credit monitoring, financial wellness and literacy solutions that educate and help protect and improve upon customers’ financial health in response to declining consumer confidence.
Solutions for attracting and growing SMB relationships: More banks and credit unions are partnering with technology partners to target and better engage with their business customers. By providing solutions beyond traditional commercial banking, such as accounting, HR, payroll, invoicing and payments, etc., financial institutions can drive increased deposits while building stronger relationships with their small business account holders.
AI-Powered Customer Service: Banks and credit unions are increasingly adopting AI technologies by partnering with companies like Glia and Agent IQ to deliver AI-assisted chat and online services. In particular, Agent IQ has helped enable financial institutions to enhance their customer experience, while reducing call center volumes by as much as 30 percent.
Q2 Innovation Studio offers a portfolio of technologies and programs for fintechs, financial institutions, and other technology providers who can leverage the software development kit (SDK) to integrate into Q2’s Digital Banking platform to drive rapid innovation by creating and delivering new extensions, solutions and integrations. Additionally, partners gain access to Q2’s expansive network of strong bank and credit union customer relationships to capitalize on the distribution opportunities embedded in a platform with over 21 million end users and more than 4.6 billion logins in 2022.
Fintech Partner Success Stories
Fourth Capital: “The Q2 Innovation Studio has been a game changer for Fourth Capital in many ways,” said CEO at Fourth Capital, Brian Heinrichs. “Currently, we’re utilizing six fintech partners through Q2 Innovation Studio. Most recently we’ve launched Rocket Mortgage, which has helped us deploy mortgage lending within our institution, an initiative that would’ve cost us thousands of dollars and similar hours to bring to our customers. Q2 Innovation Studio made the partnership seamless and we’re excited about the success we’re seeing from this initiative.”
SavvyMoney: “SavvyMoney's market-leading credit score solution integrated into the Q2 Digital Banking Platform, through Q2 Innovation Studio, just surpassed 1.1 million active credit score users and is growing at ~42,000 new users per month. The Q2 and SavvyMoney partnership has signed 93 banks and credit unions, representing 4 million digital users,” said President and CEO at SavvyMoney, JB Orecchia. "Our successful partnership has been a testament to the great collaboration between our two companies, and the integration through the Q2 Innovation Studio has been a huge success in terms of consumer adoption and engagement for banks and credit unions. When more customers can access their credit score, report and personalized loan offers through the SavvyMoney integrated platform, they’re more empowered to make informed financial decisions while driving real value for the financial institution.”