Posted by John San Filippo
Today at the FinovateSpring virtual event, Q2 Holdings, Inc. a leading provider of digital transformation solutions for banking and lending, and mobile financial service provider Moven demoed their new turnkey challenger Bank-in-a-Box solution that can be deployed in financial institutions (FIs) in as few as 30 days.
Using a combination of Q2’s core processing system for Banking as a Service, CorePro, and Moven’s award-winning financial wellness app, Q2 and Moven have developed a turnkey digital challenger strategy to solve the competitive threat of neobanks (financial technology firms that offer internet-only financial services and lack physical branches) for community and regional banks and credit unions. This collaboration brings Open Banking to customers in a way that, according to a joint announcement, has never been done before.
The intent of the Finovate showing is to help FIs understand the need to protect their current and future customer relationships from emerging digital challenger banks, get a sense of where the banking industry is headed, and understand how they can better serve their customers with innovative technology, even if that means launching their own challenger institution.
“The new bank account is being defined by a different set of rules. Low friction, engaged customer base, differentiated distribution, and strong digital (mobile and web) support are all the rage, but at the core is a new approach to the basic day-to-day bank account,” Brett King, founder and executive chairman of Moven said in a statement. “This new approach is also core agnostic, which means there are huge opportunities in building banks from the customer up, rather than from the banker down.”
“Until now, a digital challenger strategy required financial institutions to endure a prohibitively long, expensive journey. Q2 and Moven are giving banks a short, easy and cost-effective alternative to their current approach,” added Rahm McDaniel, vice president of Strategic Solutions at Q2.
“BaaS is driving transformation of the banking experience and giving FIs more flexibility to get products and services to market quickly and more efficiently,” Moven Chief Revenue Officer Bryan Clagett told Finopotamus. “While there’s often a lot of blame placed on legacy cores, it’s really legacy thinking that gets in the way of genuine innovation in banking.
“BaaS also gives traditional financial services a way to break the commodity trap; less reliance on legacy cores to drive innovation, which includes an ability to leverage open-banking and embedded finance as a means to bring more relevance to customer/member experiences,” he concluded.