Q2 Holdings Inc. (NYSE: QTWO), a provider of digital transformation solutions for financial services, announced a strategic partnership with Alloy, an identity and fraud prevention platform provider, to deliver a joint ongoing fraud monitoring solution for Q2 Digital Banking customers.
Powered by Alloy’s centralized identity decision engine for fraud detection and prevention, this solution addresses the need for FIs to take “control of their fraud monitoring efforts while maintaining an engaging user experience and growing their business.”
Through this partnership, Q2 and Alloy will deliver a solution that addresses ongoing fraud risks, such as “account takeover and peer-to-peer (P2P) payment fraud, that continuously threaten financial institutions.”
According to Alloy’s 2025 State of Fraud Benchmark Report one in three financial institutions lost “over $1 million to fraud last year.”
Additionally, account takeover fraud was the “most common fraud type by case volume identified by mid-market banks and credit unions in 2024.”
Alloy will serve as the centralized identity decision engine, integrating Q2’s digital banking data, Q2 Innovation Studio, and Alloy’s data partner network to “help FIs prevent more fraud.”
The ongoing fraud monitoring offering will be the first solution to actively ingest user activity signals coupled with fraud signals from “multiple third-party data sources with the ability to interdict in real time on risky activities that may occur within the Q2 Digital Banking platform.”
By bringing together events in Q2 digital banking with third-party data vendors in Alloy’s identity-centric decisioning platform, the joint solution will “provide real-time digital banking user action risk assessments and ongoing monitoring.”
The partnership will help distinguish genuine customers from the risky ones ensuring that genuine customers benefit from “a seamless digital banking experience while strategically introducing healthy friction for riskier customers.”
Additionally, it will improve operational efficiency via “centralized decisioning and streamlined case management.”
Jim Mortensen, Strategic Advisor at Datos Insights said:
“By combining Q2’s digital banking platform with Alloy’s identity-centric fraud prevention and orchestration capabilities, Q2’s clients can leverage a more dynamic approach to fraud detection. What makes this partnership particularly compelling is the real-time risk assessment and interdiction capabilities coupled with the ability for client FIs to make timely modifications to their fraud detection processes rapidly. This approach should help Q2 clients strike that crucial balance between strong fraud prevention and maintaining the seamless digital experience consumers expect.”
