AWS and Q2 Expand Partnership to Accelerate Banking Innovation

Rhea-AI Summary

Q2 Holdings Inc. (NYSE: QTWO) has expanded its strategic partnership with Amazon Web Services (AWS) to drive innovation for financial services. The collaboration includes Presidio, a technology solutions provider, to help Q2 expand its use of the AWS platform for its digital banking products. Q2 will leverage AWS's generative AI technology to help financial institutions automate critical processes and enhance customer service.

Key points:

• Q2 is using AWS's advanced technologies for fraud detection, audience segmentation, and personalized user experiences
• Q2 Sentinel, built on Amazon SageMaker, uses machine learning to monitor user behavior for fraud detection
• Andi Copilot, powered by Amazon Bedrock, automates workflows for commercial banking customers
• Q2 will migrate and modernize over 50,000 services on AWS, including its Innovation Studio and Partner Marketplace platform

Positive

• Expanded strategic partnership with AWS to drive innovation in financial services
• Leveraging AWS's generative AI technology for process automation and enhanced customer service
• Q2 Sentinel, built on Amazon SageMaker, has successfully identified instances of fraudulent behavior
• Andi Copilot, powered by Amazon Bedrock, automates workflows for commercial banking customers
• Migration and modernization of over 50,000 services to AWS platform

Negative

• None.

Insights

Financial Technology Analyst

This expanded partnership between Q2 and AWS represents a significant step forward in banking innovation. By leveraging AWS's cloud infrastructure and AI capabilities, Q2 is positioning itself at the forefront of digital transformation in financial services. The collaboration aims to enhance security, automate processes and improve customer experiences for banks, credit unions and fintechs.

Key points to consider:

• Q2's migration of over 50,000 services to AWS indicates a substantial commitment to cloud-based solutions
• Integration of generative AI through Amazon Bedrock for Q2's Andi Copilot could significantly streamline commercial banking workflows
• Q2 Sentinel, built on Amazon SageMaker, demonstrates the potential for advanced fraud detection using machine learning
• The partnership may accelerate Q2's ability to innovate and compete in the rapidly evolving fintech landscape

For investors, this move could potentially lead to improved operational efficiency, faster product development and enhanced service offerings for Q2, potentially driving long-term growth and competitiveness in the digital banking solutions market.

AI and Machine Learning Specialist

The integration of AWS's generative AI and machine learning capabilities into Q2's product suite is a game-changer for the banking sector. Here's why it's significant:

• Generative AI via Amazon Bedrock can revolutionize workflow automation in commercial banking, potentially reducing operational costs and improving efficiency
• Machine learning models on Amazon SageMaker for fraud detection (Q2 Sentinel) represent a cutting-edge approach to security in digital banking
• The use of AI for personalized user experiences and data-driven insights could significantly enhance customer engagement and satisfaction

This partnership positions Q2 to offer more sophisticated, AI-driven solutions to its clients. The ability to automate repetitive tasks and provide data-driven insights could be a major selling point for Q2's products, potentially leading to increased market share and revenue growth. However, the success will depend on effective implementation and the ability to demonstrate tangible benefits to financial institutions.

Q2 works with AWS and Presidio to enhance security and drive innovation, using generative AI to help financial institutions automate critical and repetitive processes

AUSTIN, Texas--(BUSINESS WIRE)-- Q2 Holdings Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services, today announced an expanded strategic partnership with Amazon Web Services, Inc. (AWS), an Amazon.com, Inc. company (NASDAQ: AMZN), to continue driving innovation for its bank, credit union, and fintech customers. As part of this collaboration, AWS and Presidio, a leading technology services and solutions provider and a premier consulting partner within the Amazon Partner Network, will help Q2 expand the use of the AWS platform to power its digital banking product, including Q2 Innovation Studio solutions. Q2 will leverage AWS innovation, including generative artificial intelligence (AI) technology, for its solution suite to help financial institutions automate critical and repetitive processes and better serve their consumer and business customers.

"Q2 is making it easy and efficient for regional and community banks to use technology like AI to help make more informed, data-driven decisions and tailor banking experiences," said Scott Mullins, General Manager of Financial Services at AWS. "AWS's generative AI capabilities are backed by the highest levels of security and privacy, giving financial services organizations the ability to automate clerical tasks and provide the information bankers need to spend more time on client-facing services. We're excited to see Q2 continue to drive innovation for these financial institutions that help our local economies thrive."

Q2 is using advanced technologies to help financial institutions capture the full potential of their data to drive insights for fraud detection, audience segmentation, and personalized user experiences. For example, Q2 Sentinel, a fraud detection tool, was built on Amazon SageMaker, using machine learning, endpoint interrogation, and other security technology to monitor user behavior on its digital banking platform. To date, the tool has helped identify instances of fraudulent behavior, saving customers time and money. Additionally, Q2's Andi Copilot, an AI solution suite purpose-built for bankers, uses Amazon Bedrock to power agents that are designed to automate workflows for Q2’s commercial banking customers.

"Cloud and AI technologies are transforming banking, but they must have the working knowledge of the industry to provide the right recommendations to have real-world impact," said Jordan Hager, Senior Vice President, Global Technology at Q2. "AWS has the financial services pedigree we need to provide the right security, privacy, and performance that our customers depend on. AWS also allows us to accelerate innovation for customers in areas like generative AI to help our customers make internal workflows simpler and less tedious, while delivering robust, personalized banking solutions. By leveraging AWS technology, we are not only enhancing the security of our platform but also positioning our architecture to meet the evolving needs of our customers, both now and in the years to come."

Q2 has been an AWS customer for more than six years, leveraging AWS compute, storage, database, analytics, machine learning, and AI services. With this expanded partnership, Q2 will migrate and modernize more than 50,000 services on AWS, including its Q2 Innovation Studio and Partner Marketplace platform, which provides access to comprehensive financial data and open banking services.

About Q2 Holdings, Inc.

Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2 enables its financial institution and fintech customers to provide comprehensive, data-driven digital engagement solutions for customers, small businesses and corporate clients. Headquartered in Austin, Texas, Q2 has offices worldwide and is publicly traded on the NYSE under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241022822533/en/

Maria Gari

+1-315-657-0041

Maria.gari@q2.com

Source: Q2 Holdings, Inc.

FAQ

What is the purpose of Q2's expanded partnership with AWS?

The expanded partnership aims to drive innovation for Q2's bank, credit union, and fintech customers by leveraging AWS's platform and generative AI technology to enhance security, automate processes, and improve customer service.

How is Q2 (QTWO) using AWS's technology for fraud detection?

Q2 has developed Q2 Sentinel, a fraud detection tool built on Amazon SageMaker, which uses machine learning and endpoint interrogation to monitor user behavior on its digital banking platform, helping to identify fraudulent activities.

What is Andi Copilot and how does it benefit Q2's customers?

Andi Copilot is an AI solution suite developed by Q2, powered by Amazon Bedrock. It is designed to automate workflows for Q2's commercial banking customers, making internal processes simpler and less tedious.

How many services will Q2 (QTWO) migrate to AWS as part of this partnership?

Q2 plans to migrate and modernize more than 50,000 services on AWS, including its Q2 Innovation Studio and Partner Marketplace platform.