US-based API-driven deposit network ModernFi has announced its integration with Q2 ’s Digital Banking Platform via the latter’s Partner Acceleration Program. ModernFi’s integrated deposit network allows banks and credit unions to offer extended deposit insurance through Q2’s Digital Banking Platform, aiding in deposit growth, retention, and management.

This integration of sweep and reciprocal programmes into digital banking reduces friction for depositors and bank teams, promoting industry-wide adoption. Q2 Holdings is a 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 high-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 competitors or leave the banking sector entirely. Streamlining deposit growth and stability 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-utilised sweep and reciprocal programmes manually through paperwork, phone calls, and emails.

This burdensome onboarding and management process helps explain why less than half of all US banks participated in reciprocal programmes in 2023, even though those that did experienced 12% higher growth than those that did not. The Q2 Partner Accelerator is a programme 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 standardised integrations to their customers.

Officials from ModernFi said they are happy to partner and integrate with Q2’s Digital Banking Platform to launch their fully integrated insured sweep account. By breaking new technical ground and bringing sweep and reciprocal programmes into the modern age, they have removed the friction for depositors and operational burden for institutions, dramatically increasing the usability and adoption of these critical products. They look forward to continuing to innovate alongside their partners to help drive deposit growth and stability for financial institutions and the communities they serve.

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