Q2 Unveils 2025 State of Commercial Banking Report
Q2 Holdings (NYSE:QTWO) has released its State of Commercial Banking January 2025 Market Analysis report, highlighting key trends and challenges in the commercial banking sector. The report, based on Q2 PrecisionLender's database of 2024 commercial lending deals from over 140 North American financial institutions, reveals that banks have successfully rebuilt liquidity to near pre-crisis levels.
Key findings include: improved but costlier liquidity affecting net interest margins; Federal Reserve rate cuts of 100 basis points reshaping loan pricing; isolated credit stress in commercial real estate; ongoing fraud concerns; and increasing importance of digital technology for small business relationships. The data shows only modest increases in delinquencies and a decline in commercial and industrial downgrades, while emphasizing the opportunity in the underserved SMB market.
Q2 Holdings (NYSE:QTWO) ha pubblicato il suo rapporto sull'analisi di mercato dello stato del banking commerciale di gennaio 2025, evidenziando le principali tendenze e sfide nel settore bancario commerciale. Il rapporto, basato sul database di Q2 PrecisionLender relativo agli affari di prestito commerciale del 2024 provenienti da oltre 140 istituzioni finanziarie nordamericane, rivela che le banche hanno ricostruito con successo la liquidità a livelli vicini a quelli pre-crisi.
I risultati chiave includono: liquidità migliorata ma più costosa che influisce sui margini di interesse netto; tagli dei tassi della Federal Reserve di 100 punti base che modificano la pricing dei prestiti; stress creditizio isolato nel settore immobiliare commerciale; preoccupazioni continue per frodi; e crescente importanza della tecnologia digitale per le relazioni con le piccole imprese. I dati mostrano solo modesti aumenti nei tassi di morosità e un declino nei downgrade commerciali e industriali, sottolineando l'opportunità nel mercato delle piccole e medie imprese poco servito.
Q2 Holdings (NYSE:QTWO) ha presentado su informe sobre el análisis de mercado del estado de la banca comercial de enero de 2025, destacando las principales tendencias y desafíos en el sector bancario comercial. El informe, basado en la base de datos de Q2 PrecisionLender de los acuerdos de préstamos comerciales de 2024 de más de 140 instituciones financieras de América del Norte, revela que los bancos han logrado reconstruir la liquidez a niveles cercanos a los anteriores a la crisis.
Los hallazgos clave incluyen: liquidez mejorada pero más costosa que afecta los márgenes de interés neto; recortes de tasas de la Reserva Federal de 100 puntos básicos que remodelan la fijación de precios de los préstamos; estrés crediticio aislado en bienes raíces comerciales; preocupaciones continuas sobre fraudes; y la creciente importancia de la tecnología digital para las relaciones con pequeñas empresas. Los datos muestran sólo aumentos moderados en las morosidades y una disminución en los degradados comerciales e industriales, mientras enfatizan la oportunidad en el mercado de las pequeñas y medianas empresas poco atendido.
Q2 Holdings (NYSE:QTWO)는 2025년 1월 상업은행 현황에 대한 시장 분석 보고서를 발표하여 상업은행 부문의 주요 트렌드와 도전 과제를 강조했습니다. 이 보고서는 140개 이상의 북미 금융 기관의 2024년 상업 대출 거래 데이터베이스인 Q2 PrecisionLender에 기반하고 있으며, 은행들이 위기 이전 수준에 근접하게 유동성을 성공적으로 회복했음을 보여줍니다.
핵심 발견 사항으로는: 순이자 마진에 영향을 미치는 개선된 유동성, 그러나 더 비싼 유동성; 대출 가격을 재편성하는 100bp의 연준 금리 인하; 상업용 부동산에서의 분리된 신용 스트레스; 지속적인 사기 우려; 그리고 중소기업 관계에 대한 디지털 기술의 중요성 증가가 있습니다. 데이터에 따르면 연체율은 다소 증가했지만 상업 및 산업 신용등급 하락은 감소했고, 소외된 중소기업 시장에서의 기회를 강조했습니다.
Q2 Holdings (NYSE:QTWO) a publié son rapport d'analyse du marché de l'état de la banque commerciale de janvier 2025, mettant en lumière les principales tendances et défis du secteur bancaire commercial. Le rapport, basé sur la base de données de Q2 PrecisionLender concernant les accords de prêt commercial de 2024 de plus de 140 institutions financières nord-américaines, révèle que les banques ont réussi à reconstruire la liquidité à des niveaux proches de ceux d'avant la crise.
Les résultats clés comprennent : une liquidité améliorée mais plus coûteuse affectant les marges d'intérêt nettes ; des baisses de taux de la Réserve fédérale de 100 points de base remodelant la tarification des prêts ; un stress crédit isolé dans l'immobilier commercial ; des préoccupations persistantes concernant la fraude ; et une importance croissante de la technologie numérique pour les relations avec les petites entreprises. Les données montrent seulement des augmentations modestes des retards de paiement et une diminution des dégradations commerciales et industrielles, tout en soulignant l'opportunité dans le marché des PME mal desservi.
Q2 Holdings (NYSE:QTWO) hat seinen Marktanalysebericht über den Stand des Gewerbebankgeschäfts für Januar 2025 veröffentlicht, in dem wichtige Trends und Herausforderungen im Gewerbebanksektor hervorgehoben werden. Der Bericht basiert auf der Datenbank von Q2 PrecisionLender, die auf 2024 abgeschlossenen Gewerbelendungen von über 140 nordamerikanischen Finanzinstituten basiert, und zeigt, dass die Banken die Liquidität erfolgreich auf nahezu das Niveau vor der Krise wiederaufgebaut haben.
Zu den wichtigsten Erkenntnissen gehören: verbesserte, aber kostspieligere Liquidität, die die Nettomargen beeinflusst; Zinssenkungen der Federal Reserve um 100 Basispunkte, die die Kreditpreisgestaltung umgestalten; isolierter Kreditstress im gewerblichen Immobilienbereich; anhaltende Betrugsängste; und die zunehmende Bedeutung digitaler Technologien für die Beziehungen zu kleinen Unternehmen. Die Daten zeigen nur moderate Zunahmen bei den Zahlungsverzügen und einen Rückgang bei den Herabstufungen von Handels- und Industrieunternehmen, während die Chancen im unterversorgten KMU-Markt betont werden.
- Banks have rebuilt liquidity to near pre-crisis levels
- Credit performance exceeded expectations with modest delinquency increases
- Decline in commercial and industrial downgrades
- Growth opportunity identified in underserved SMB market
- Increased cost of liquidity squeezing net interest margins
- Pockets of stress in commercial real estate sector
- Persistent payment fraud concerns
New report reveals combating payment fraud, strengthening client relationships and enhancing commercial banking experience are top trends for financial institutions
“The commercial banking industry demonstrated resilience and adaptability in 2024, successfully rebuilding liquidity to near pre-crisis levels,” said Q2’s Senior Strategic Business Advisor Gita Thollesson. “2025 will present its own challenges and opportunities, including combating payment fraud and strengthening primacy in a competitive digital landscape. For banks and credit unions to maintain their edge, they should strategically leverage digital offerings to enhance profitability and meet customer demands for efficiency and innovation.”
This report is based on findings from Q2 PrecisionLender’s proprietary database of 2024 commercial lending deal flow, along with economic data from several public sources, including the Federal Deposit Insurance Corporation (FDIC) and Federal Reserve, and industry research. Q2 PrecisionLender data reflects commercial relationships from more than 140 geographically diverse banks and credit unions in
Key Takeaways from the Report:
- Liquidity has improved but has become more costly, squeezing net interest margins – Financial institutions have emerged from the liquidity crisis with a solid foundation of deposits, approaching pre-crisis levels.
- Federal Reserve rate cuts have reshaped the commercial loan pricing landscape – The 100 basis points in Federal Reserve rate cuts between September and December 2024 contributed to a shallowing of the inverted yield curve, with short-term rates declining while mid-term rates spiked.
- Pockets of credit stress reside in the commercial real estate sector – Credit performance has exceeded expectations across much of the market, with only a modest increase in delinquencies and a decline in commercial and industrial (C&I) downgrades.
- Fraud continues to concern bank and credit union executives – By embracing collaboration, advanced technologies like AI, and a centralized approach, banks and credit unions can be a strong ally for business customers in the ongoing battle against fraud.
- Data and digital technology drive the acquisition and growth of small business relationships – The underserved small and medium-sized business (SMB) market presents an opportunity for banks and credit unions to grow deposits.
- Efficiency and user experience are becoming even more pivotal for midsize and large companies – Commercial clients are looking to their banks and credit unions to help them manage their business more efficiently.
Click here to download the 2025 State of Commercial Banking Market Analysis report.
For additional insights related to the report, listen to Q2 senior strategic business advisor and report co-author Anna-Fay Lohn’s episode on The Purposeful Banker podcast, and watch the recording of Q2’s annual State of Commercial Banking webinar.
To learn more about how Q2 delivers simple, smart, end-to-end banking and lending solutions for commercial financial institutions, visit https://www.q2.com/commercial.
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
Forward-looking Statements
This press release and the report referenced herein contains forward-looking statements, including statements about: anticipated challenges and opportunities in 2025, including combating payment fraud and strengthening primacy in a competitive digital landscape; requirements for financial institutions to remain competitive; improved liquidity, with increased costs and tighter net interest margins; the effects of interest rate cuts on commercial lending; credit stress levels across the market; increased fraud and ways to combat it; opportunities for data and digital technology within the SMB market; and, the increased importance of efficiency and user experience. The forward-looking statements contained in this press release are based upon our historical performance and our current plans, estimates, and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include risks related to: (a) global economic uncertainties and challenges or changes in the financial services industry and credit markets, including as a result of recent bank failures, mergers and acquisitions within the banking sector, inflation, higher and shifting interest rates and any potential financial regulations and their potential impacts on our prospects' and customers' operations, the timing of prospect and customer implementations and purchasing decisions, our business sales cycles and on account holder or end user, or End User, usage of our solutions; (b) the risk of increased or new competition in our existing markets and as we enter new markets or new segments of existing markets, or as we offer new solutions; (c) the risks associated with the development of our solutions, including artificial intelligence, or AI, based solutions, and changes to the market for our solutions compared to our expectations; (d) quarterly fluctuations in our operating results relative to our expectations and guidance and the accuracy of our forecasts; (e) the risks and increased costs associated with managing growth and global operations, including hiring, training, retaining and motivating employees to support such growth, particularly in light of recent macroeconomic challenges, including increased competition for talent, employee turnover, labor shortages and wage inflation; (f) the risks associated with our transactional business which are typically driven by End User behavior and can be influenced by external drivers outside of our control; (g) the risks associated with effectively managing our business and cost structure in an uncertain economic environment, including as a result of challenges in the financial services industry and the effects of seasonality and unexpected trends; (h) the risks associated with geopolitical uncertainties, including the heightened risk of state-sponsored cyberattacks or cyber fraud on financial services and other critical infrastructure, and political uncertainty or discord, including related to the 2024 U.S. presidential election; (i) the risks associated with accurately forecasting and managing the impacts of any economic downturn or challenges in the financial services industry on our customers and their End Users, including in particular the impacts of any downturn on financial technology companies, or FinTechs, or alternative finance companies, or Alt-FIs, and our arrangements with them, which represent a newer market opportunity for us, a more complex revenue model for us and which may be more vulnerable to an economic downturn than our financial institution customers; (j) the challenges and costs associated with selling, implementing and supporting our solutions, particularly for larger customers with more complex requirements and longer implementation processes, including risks related to the timing and predictability of sales of our solutions and the impact that the timing of bookings may have on our revenue and financial performance in a period; (k) the risk that errors, interruptions or delays in our solutions or Web hosting negatively impacts our business and sales; (l) the risks associated with cyberattacks, financial transaction fraud, data and privacy breaches and breaches of security measures within our products, systems and infrastructure or the products, systems and infrastructure of third parties upon which we rely and the resultant costs and liabilities and harm to our business and reputation and our ability to sell our solutions; (m) the difficulties and risks associated with developing and selling complex new solutions and enhancements, including those using AI with the technical and regulatory specifications and functionality required by our customers and relevant governmental authorities; (n) risks associated with operating within and selling into a regulated industry, including risks related to evolving regulation of AI and machine learning, the receipt, collection, storage, processing and transfer of data and increased regulatory scrutiny in financial technology and related services, including specifically on banking-as-a-service, or BaaS, services; (o) the risks associated with our sales and marketing capabilities, including partner relationships and the length, cost and unpredictability of our sales cycle; (p) the risks inherent in third-party technology and implementation partnerships that could cause harm to our business; (q) the risk that we will not be able to maintain historical contract terms such as pricing and duration; (r) the general risks associated with the complexity of our customer arrangements and our solutions; (s) the risks associated with integrating acquired companies and successfully selling and maintaining their solutions; (t) litigation related to intellectual property and other matters and any related claims, negotiations and settlements; (u) the risks associated with further consolidation in the financial services industry; (v) the risks associated with selling our solutions internationally and with the continued expansion of our international operations; and (w) the risk that our debt repayment obligations may adversely affect our financial condition and that we may not be able to obtain capital when desired or needed on favorable terms.
Additional information relating to the uncertainty affecting the Q2 business is contained in Q2's filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Q2's website at http://investors.Q2.com/. These forward-looking statements represent Q2's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Q2 disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130547921/en/
MEDIA CONTACT
Carly Baker
Q2 Holdings, Inc.
+1 210-391-1706
Carly.baker@q2.com
Source: Q2 Holdings, Inc.
FAQ
What are the key findings of Q2's 2025 State of Commercial Banking Report?
How did the Federal Reserve rate cuts affect QTWO's commercial lending landscape in 2024?
What are the main challenges facing commercial banks according to QTWO's 2025 report?
How has commercial banking liquidity changed according to QTWO's 2025 report?
