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Q2

Written by Q2 | 25 Jun, 2020

A previous Q2 blog post highlighted a significant shift in Q2’s Banking as a Service (BaaS) presence with the rebranding under the “Q2 BaaS” moniker. The financial services industry's needs are more fluid than ever, representing a compelling opportunity for the Q2 BaaS team. Q2’s Jonathan Price, senior vice president of emerging businesses, corporate and business development recently spoke with Zachary Miller, founder and managing editor at media company Tearsheet, to discuss Q2’s decision to transform its BaaS offering. The discussion covered critical topics, including:

Moving under the Q2 BaaS brand

Q2 BaaS’s efforts are meant to help entities offer banking services without being a bank. Leveraging its CorePro cloud-based core processor to power onboarding, deposit processing, debit card, and payment solutions for clients like Acorns and Credit Karma. By dissolving its collaborative partnership with StoneCastle and rebranding as Q2 BaaS, Q2 hasn’t created a fundamental change in its approach to serving customers or building solutions. It has, however, created an opportunity to build transformative initiatives in the marketplace without being locked into an exclusive partnership for its deposit network. (Q2 and StoneCastle will continue to support existing customers and may choose to partner together on an ad hoc basis on future projects.)

Opportunities beyond traditional banking

Q2 has invested over 15 years working with financial institutions (FIs), corporations, and regulators. As the market saw rapid changes and disruption following the financial crisis of 2007-2008, Q2 invested time and money in the fintech space. With this experience, the company is poised to serve FIs and fintech players alike. Fintechs need the infrastructure and compliance that banks can provide; Q2 is equipped to connect fintechs with the right banks, and help banks scale up to meet the demands of growing fintechs.

Projected growth in other markets

Demand in the BaaS space will fuel disruptive, first-in-industry banking products over the coming months and years. With this in mind, fintech opportunities won’t represent the final stop for Q2 BaaS’s projected expansion. Look for potential efforts by Q2 BaaS in solutions designed for early direct deposit, gig economy and self-employed workers, and more.

Learn more

Read about the benefits and advantages of Q2 BaaS in the Tearsheet article, Q2 rebrands Cambr as Q2 BaaS as it moves on from its partnership with StoneCastle, then learn more about Q2 BaaS solutions.