Q2 and Alloy Join Forces to Combat Fraud in Financial Institutions

Q2 Holdings Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for financial services, has announced a strategic partnership with Alloy, a leading identity and fraud prevention platform provider. The collaboration aims to deliver a joint ongoing fraud monitoring solution for Q2 Digital Banking customers, empowering financial institutions to manage their fraud posture while maintaining an engaging user experience.

The partnership addresses the growing concern of account takeover and peer-to-peer (P2P) payment fraud among financial institutions. According to Alloy's upcoming 2025 State of Fraud Benchmark Report, one in three financial institutions lost over $1 million to fraud last year, with account takeover fraud being the most common fraud type by case volume identified by mid-market banks and credit unions in 2024.



The joint solution combines Q2's digital banking platform with Alloy's centralized identity decision engine for real-time fraud detection and prevention. Alloy will serve as the centralized identity decision engine, integrating Q2's digital banking data, Q2 Innovation Studio, and Alloy's robust data partner network to help financial institutions prevent more fraud. The solution will actively ingest user activity signals coupled with fraud signals from multiple third-party data sources, enabling real-time interdiction on risky activities that may occur within the Q2 Digital Banking platform.

The partnership will also help financial institutions distinguish between genuine customers and potential fraudsters, ensuring that genuine customers benefit from a seamless digital banking experience while strategically introducing healthy friction for riskier customers. This approach enables financial institutions to maintain a balance between strong fraud prevention and maintaining a seamless digital experience for their customers.

By integrating Q2's digital banking data with Alloy's identity-centric decisioning platform, the joint solution will provide real-time digital banking user action risk assessments and ongoing monitoring. This will help financial institutions improve operational efficiency via centralized decisioning and streamlined case management, enabling them to quickly identify and address fraudulent activities.

The partnership between Q2 and Alloy represents a significant advancement in fraud prevention for financial institutions leveraging Q2's digital banking platform. By combining real-time risk assessment, enhanced identity verification, improved operational efficiency, and adaptability to emerging threats, the partnership empowers financial institutions to better protect their customers and maintain a seamless user experience.

In conclusion, the strategic partnership between Q2 and Alloy delivers a comprehensive solution for addressing the growing concern of account takeover and P2P payment fraud among financial institutions. By combining real-time risk assessment, enhanced identity verification, improved operational efficiency, and adaptability to emerging threats, the partnership empowers financial institutions to better protect their customers and maintain a seamless user experience.