Q2 is a financial experience company dedicated to providing digital banking and lending solutions to banks, credit unions, alternative finance, and fintech companies in the U.S. and internationally.
How has the journey been for Q2, especially through the COVID era and beyond?
The last five years have been transformative for Q2, marked by technological advances and shifts in consumer behavior. As we celebrate 20 years, it is striking how far banking has come. Back then, we were tied to desktops, and now over half of our logins—both personal and business—are through mobile devices. The COVID period accelerated trends that were already emerging, forcing rapid adoption of digital tools. Before the pandemic, users logged in around 11 to 12 times a month. That number jumped to 22 during the pandemic, showing how essential digital financial management became. This shift was not just a change in habits but a realization that technology can replace many day-to-day interactions with financial institutions. The pandemic also triggered an investment surge in fintech, although many companies built strong products without evolving into sustainable businesses. Financial institutions responded by focusing on delivering more curated digital experiences.
How does Q2 manage to stay focused on delivering personalized services across so many different financial institutions and regions?
It is essential to recognize that financial institutions are as diverse as the communities they serve. Some are defined by geography, others by affinity groups or specific business sectors. Our goal is to provide each institution with the tools to deliver personalized experiences. This goes beyond aesthetics—every institution can decide how to arrange dashboards, integrate relevant services, and align solutions with the needs of their audience, whether it is individuals or businesses.
We offer what we call a composable dashboard, giving institutions full control over what they present and how they present it. This allows them to craft highly customized experiences, much like how streaming services recommend content tailored to individual users. Two institutions in close proximity can serve similar financial products, but with entirely different customer experiences based on what resonates with their specific communities.
What are the key financial products and services that consumers in the U.S. are demanding right now?
Consumers expect their financial institutions to meet both routine and complex needs with ease. Managing bills, transferring funds, and performing day-to-day transactions are basic requirements. However, people and businesses are also seeking greater support in navigating their financial lives, which often involves a combination of technology and human assistance. Small business owners, in particular, juggle multiple accounts and software without the luxury of dedicated financial staff. They are experts in their businesses, not in financial management. Our goal is to empower them by offering tools that simplify operations, allowing them to focus on their core activities. Similarly, individuals benefit from a comprehensive view of their finances through aggregation tools and advice. This support helps customers feel more confident about their financial decisions, removing the fear of navigating complex markets alone.
How does Q2 balance continuous innovation with the need for robust cybersecurity?
Cybersecurity is an absolute priority, requiring ongoing investment and collaboration. Technology alone is not enough—we rely heavily on partnerships with financial institutions, technology providers, and law enforcement. The interconnected nature of banking means that security depends on the strength of the entire network. Each interaction and transaction, whether internal or external, must be carefully managed to ensure seamless and secure operations. Human behavior also plays a significant role, as people often present the greatest security risk. That is why we emphasize strong organizational practices and ongoing training. Artificial intelligence is becoming a powerful tool for both security and fraud prevention. Criminals are becoming more sophisticated, so we must stay ahead by continuously evolving our defenses. With AI’s growing capabilities, it will enhance our ability to detect and mitigate risks, making financial operations safer for everyone involved.
Was there ever an appetite for Q2 to launch its own challenger bank, or is the company committed to supporting existing financial institutions?
Our mission is clear: we are here to empower financial institutions, not replace them. We believe in the importance of strengthening communities by supporting the banks and credit unions that serve them. Running a technology company and running a bank are fundamentally different challenges. Many fintechs that initially took a challenger approach have realized that partnering with existing institutions is the best path forward. Banks already excel in managing risk, navigating regulations, and building relationships within their communities.
Our founder, Hank Seal, was deeply committed to the idea that local financial institutions understand their communities in ways that larger banks cannot. We are dedicated to providing these institutions with the technology they need to serve their customers effectively. There is space in the market for both large and small players, and we believe that local institutions will continue to play an essential role, even as the financial landscape evolves.
What do you see as the biggest growth areas for fintech over the next few years?
Payments remain one of the most dynamic areas of growth, with innovations happening across peer-to-peer transfers, corporate payments, and international transactions. The goal is to simplify the payment experience for users, allowing them to send money quickly and securely without worrying about the underlying technology. Users should be able to choose how and when they send funds, with the right payment tools emerging seamlessly to meet their needs.
AI and automation are also reshaping the industry, with chatbots and fraud prevention tools becoming more sophisticated. Financial institutions are exploring ways to integrate AI-powered tools that offer personalized advice, such as bookkeeping solutions embedded directly into banking apps. We expect to see more niche-focused institutions emerging, serving specific industries or communities with tailored solutions. By 2030, we anticipate a financial ecosystem where technology and human expertise work together seamlessly, providing both individuals and businesses with the support they need to thrive.
What role will AI play in the future of financial services, and how does Q2 envision that evolution?
AI is becoming integral to financial services, but it is essential to recognize that AI operates across a continuum, from basic machine learning to advanced generative models. The key is knowing which type of AI to apply to specific tasks. At Q2, we began integrating AI more than a decade ago, starting with machine learning tools focused on fraud detection and security. One example is our Andy AI agent within the PrecisionLender product, which acts as a coach for bankers, guiding them in pricing decisions. The future of AI will involve more than just question-and-answer interactions. We envision a world where AI agents collaborate with each other, testing ideas and gathering data autonomously. This approach mirrors how humans work together, each contributing their expertise. The goal is not to replace human intelligence but to complement it, creating systems where technology and people collaborate effectively. While AI will continue to evolve rapidly, we believe that the most meaningful developments will come from thoughtfully integrating these tools into existing systems.
