Apiture and NCR ranked as overall leaders. Digital banking platforms that offer flexibility and personalization are highly sought after by banks and credit unions striving to become central to the financial lives of their business customers
Q2 leads the race to modernize business digital banking in Javelin Strategy & Research’s 2022 Small Business Digital Banking Vendor Scorecard. The Austin, Texas-based vendor edged out Apiture and NCR among vendors offering digital banking solutions for banks and credit unions that are looking to appeal to small businesses and microbusinesses.
Javelin scored six leading digital banking vendors across three categories—Functionality and User Experience, Administration and Portfolio Management, and Strategic Vision and Delivery of Solutions—and assessed them on 380 features and functions deemed most important to the digital banking journeys of small businesses.
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Servicing the digital banking needs of small businesses and microbusinesses has become a highly competitive area for banks and credit unions, and one with significant headwinds created by the dominance of the largest U.S. banks. This makes choosing the right vendor with the right solutions an essential task for financial institutions (FIs) entering the small business banking space.
“Smaller banks and credit unions have struggled to express their competitive advantages in the digital space,” said Ian Benton, senior analyst of Digital Banking & Payments at Javelin Strategy & Research. “The most successful vendors are empowering their FI clients with a personalized digital experience, one that serves the FI’s unique business customer base.”
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Q2 emerged as the overall winner with the successful realization of a single-platform approach to digital banking, which gives bank and credit union clients the flexibility to present products and services to businesses based on individual needs rather than a one-size-fits-all solution. This allowed Q2 to sweep the first-place positions in all three categories. Apiture of Wilmington, N.C. took second place and NCR of Atlanta, Ga. placed third in overall ranking.
The report states that the gap between leaders and laggards in the space has shrunk considerably. Business banking features that would have been at the vanguard a few years ago are now expected, with digital banking and payments platforms becoming highly commoditized. The main points of differentiation today are cash-flow analysis and financial health, insights, streamlined account opening, and invoicing and payment acceptance. These are not areas where banks and credit unions have traditionally played, underscoring the competitive hurdles they must overcome and that vendors are focused on helping them clear.
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