Pub. 8 2018-2019 Issue 3

18 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S T he way we define relationships is changing. What were once face-to-face interactions are now digital interac- tions. Ensuring these online experiences are positive is crucial in the digital age. In addition to careful attention to usability, better experienc- es can be ensured through the use of data: transactional data, demographic data, behavioral data—a lot of which the average Financial Institution (FI) is currently sitting on. A lot of FIs already leverage data for security and compliance issues, but few are looking to data to build experiences and rela- tionships. The potential rewards, though, are huge—particularly for community-focused FIs looking to drive local engagement. If, that is, they know how to use their data Q2’s data scientists and engineers have been working on this for years, uncovering ways to give community FIs ac- tionable insights to better serve their account holders on our usability-tested digital banking platform. Our mission is to build stronger communities by strengthening the FIs that serve them — so it’s mission critical that we help build relationships in FIs’ communities. Building SMARTer Relationships Building on the machine learning and analytics that we pioneered for security solutions like Q2 SentinelTM—which uses behavioral analytics and other data points to detect and intercept fraud in real time—Q2 turned its data expertise to the challenge of building relationships. Our solution is Q2 SMART™. Banks already have a wealth of data—and they’re collecting more transactional and behav- ioral data all the time. But, for the most part, it goes unused. They could be doingmore, and now they can—with Q2 SMART. Q2 SMART uses a class of algorithmic techniques known as collaborative filtering, or social filtering, to make sense of an FI’s transactional and behavioral data. It can then make product recommendations about likely account holder needs. And it works. Q2 data scientists, working with FIs, report that users from the collaborative filteringmodel are three times more likely to open a new product than those from a larger, more general group. Q2 SMART will help FIs know their account holders better. They’ll be able to effectively anticipate customer needs and deliver better banking experiences. Q2 SMART lets FIs target the right banking product or service to the right person with the right message at the right time—for example, which account holders are the best fit for specific types of loans, savings pro- grams, credit and debit cards, and other products and services. Serving digital communities Communities are as much online as they are off—maybe more so. Reaching these digital neighborhoods in meaningful, actionable ways has been a challenge to FIs, who are often be- hind the technology curve. But Q2 SMART is changing that. Even small FIs can now connect with the online communities they serve in meaningful ways. Though introduced to Q2’s clients only a few years ago, Q2 SMART has shown real re- sults—that will only get better. We see a win-win: communities receiving the services they need to thrive, and banks finding increased opportunities for engagement and revenue with the communities they serve. n To learn more about Q2 and how can leverage analytics to protect your assets, uncover account holder behaviors, and more, visit https://www.q2ebanking.com/ platform/analytics/. Growing Relationships, Communities and Opportunities with Data