ModernFi Announces Integration with Q2's Digital Banking Platform

Rhea-AI Summary

ModernFi has announced its integration with Q2's Digital Banking Platform via the Q2 Partner Accelerator Program. This collaboration enables banks and credit unions to offer accounts with extended deposit insurance, potentially enhancing deposit growth and retention.

The integration aims to eliminate operational friction and increase adoption of sweep and reciprocal programs. These programs, previously managed manually, will now be fully integrated into digital banking, offering a more streamlined experience.

ModernFi's integration is expected to help financial institutions strengthen their balance sheets by providing a non-rate solution to grow deposits. This move is particularly significant as financial institutions strive to compete with larger competitors and retain depositors within the banking sector.

The Q2 Partner Accelerator Program allows financial services companies to pre-integrate their technology into Q2's platform, enabling swift deployment to customers. This partnership is seen as a key step in modernizing and enhancing the usability of sweep and reciprocal programs.

Positive

• ModernFi's integration with Q2's platform enhances deposit growth and retention capabilities.
• The collaboration offers a non-rate solution for strengthening balance sheets.
• Streamlined processes eliminate operational friction for financial institutions.
• Improved usability and adoption of sweep and reciprocal programs.
• Q2 Partner Accelerator Program facilitates rapid deployment of integrated solutions.

Negative

• Less than half of U.S. banks participated in reciprocal programs last year.
• Potential operational challenges in transitioning from manual to digital processes.
• Dependence on Q2's platform for the integration may pose risks if platform issues arise.

Through ModernFi’s first-of-its-kind fully integrated deposit network, banks and credit unions can now offer accounts with extended deposit insurance directly through Q2’s Digital Banking Platform to help grow, retain, and manage their deposit base.

NEW YORK--(BUSINESS WIRE)-- ModernFi, the first fully integrated and API-driven deposit network, today announced its integration with Q2’s Digital Banking Platform, via the Q2 Partner Accelerator Program. This end-to-end integration, bringing sweep and reciprocal programs directly into digital banking, aims to eliminate friction for depositors and bank operating teams and drive adoption of these crucial programs throughout the industry.

Q2 Holdings, Inc. (NYSE: QTWO) is a leading provider of digital transformation solutions for financial services. As part of the Q2 Partner Accelerator Program, financial institutions will be able to offer ModernFi’s digitally integrated insured sweep accounts to provide their highest-value customers extended deposit insurance via the Q2 Digital Banking Platform. ModernFi helps financial institutions strengthen the insured composition of their balance sheets and compete for depositors that might otherwise go to the largest competitors or leave the banking sector entirely.

ModernFi’s integration with the Q2 Digital Banking Platform offers an attractive, non-rate solution for financial institutions to grow deposits and bolster the strength of their balance sheets, a top concern for both banks and credit unions. The integration is key for financial institutions that are used to running these under-utilized sweep and reciprocal programs manually through paperwork, phone calls, and emails. This burdensome onboarding and management process helps explain why less than half of all U.S. banks participated in reciprocal programs last year, even though those that did experienced 12 percent higher growth than those that did not.

“ModernFi is proud to partner and integrate with Q2’s Digital Banking Platform to launch its fully integrated insured sweep account,” said Brendan Quinn, Digital Banking Partnerships Lead of ModernFi. “By breaking new technical ground and bringing sweep and reciprocal programs into the modern age, we have removed the friction for depositors and operational burden for institutions, dramatically increasing the usability and adoption of these critical products. We look forward to continuing to innovate alongside our partners to help drive deposit growth and stability for financial institutions and the communities they serve.”

The Q2 Partner Accelerator is a program through the Q2 Innovation Studio that allows in-demand financial services companies who are leveraging the Q2 SDK to pre-integrate their technology to the Q2 Digital Banking Platform. This enables financial institutions to work with these partners, purchase their solutions, and rapidly deploy their standardized integrations to their customers.

“We’re excited to welcome ModernFi to the Q2 Accelerator Partner Program,” said Johnny Ola, managing director of Q2 Innovation Studio, at Q2. “Financial institutions can now access ModernFi’s deposit network to help grow deposits.”

To learn more about ModernFi and the Q2 Innovation Studio, please click here.

About ModernFi

ModernFi empowers financial institutions of all sizes to better serve their communities. Through ModernFi's deposit network, banks and credit unions can grow, retain, and manage their deposit base by sourcing deposits, sweeping funds, and providing additional security to depositors via extended deposit insurance through network institutions. Founded by a team of veteran engineers and industry experts, the firm provides financial institutions with end-to-end deposit management built on a modern tech stack and a foundation of compliance. Learn more at ModernFi.com.

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 institutions and fintech companies to provide comprehensive, data-driven digital engagement solutions for consumers, 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.

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Media

ModernFi

contact@modernfi.com

Source: ModernFi

FAQ

What is the significance of ModernFi’s integration with Q2’s Digital Banking Platform?

The integration enables banks and credit unions to offer accounts with extended deposit insurance, enhancing deposit growth and retention.

How does ModernFi's integration with Q2 help financial institutions?

It streamlines the management of sweep and reciprocal programs, reducing operational friction and increasing program adoption.

What are the benefits of the Q2 Partner Accelerator Program for financial institutions?

The program allows financial institutions to quickly deploy integrated solutions from in-demand financial services companies.

How does ModernFi’s integration address operational burdens?

By fully integrating sweep and reciprocal programs into digital banking, it reduces the need for manual paperwork, phone calls, and emails.

What impact will ModernFi's integration with Q2 have on deposit insurance?

It provides extended deposit insurance, which helps financial institutions strengthen their balance sheets and compete for depositors.

What challenges might arise from ModernFi’s transition to digital processes?

Institutions may face operational challenges in transitioning from manual to fully integrated digital processes.