Q2 Holdings Teams with Alloy on Integrated Fraud Prevention Solution for Digital Banking

Q2 Holdings Inc. has announced a strategic partnership with Alloy to provide an integrated fraud monitoring solution for Q2’s digital banking customers. The solution leverages Alloy’s centralized identity decision engine to address ongoing fraud risks, particularly account takeover and P2P payment fraud—two threats that have grown significantly more sophisticated with the rise of AI-powered fraud tools.

The joint solution combines Q2’s digital banking data and Innovation Studio capabilities with Alloy’s extensive data partner network. It processes user activity signals and fraud indicators from multiple third-party sources to deliver real-time risk assessments and enable immediate intervention for suspicious activities within Q2’s Digital Banking platform.

According to preliminary findings from Alloy’s upcoming 2025 State of Fraud Benchmark Report, one-third of financial institutions experienced fraud losses exceeding $1 million in 2024. Account takeover emerged as the predominant form of fraud affecting mid-market banks and credit unions during this period, reflecting a broader industry challenge that has intensified since the acceleration of digital banking adoption.

The system aims to enhance operational efficiency through centralized decision-making and streamlined case management. It implements targeted friction points for potentially risky users while maintaining smooth experiences for legitimate customers, following the principle of risk-based authentication that has become increasingly important in digital banking security.

Jeff Scott, VP of fraudtech solutions at Q2, emphasizes that the partnership will enhance Q2’s existing fraud monitoring capabilities while maintaining focus on user experience: “We are committed to continuously empowering our customers to help them fight against fraud and protect their account holders.”

Q2 Holdings, headquartered in Austin, Texas, provides digital transformation solutions for financial services organizations globally and trades publicly on the NYSE under QTWO. Alloy, founded in 2015, serves over 600 financial institutions and fintechs with its Identity and Fraud Prevention Platform, having established itself as a leading provider of continuous identity verification solutions.

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January 23, 2025 – by the ID Tech Editorial Team