Moven and Q2 partner to help small banks compete with challengers

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The neobank Moven, which founder Brett King launched in 2011 as one of the first U.S. challenger banks, is now offering its technology to community banks in a streamlined form with partner Q2. The offering could help small banks get up and running with a mobile banking app within 30 days, the companies say. This could be used by small banks that don't have a mobile app and want to start offering one, that want to improve their existing app, or that want to launch a challenger bank of their own.

The companies sought to create a program for community banks that would help them compete with a Chime or a Varo, King said.

Brett King, founder, Moven
“The question was, how do we create something for community banks that helps them compete with a Chime or a Varo, combining the strength of Q2 with our banking as a service skills?” King said.

Moven offers an app that tracks a basic checking and savings account and debit card, all of which, in this case, will be managed by the community bank client. The app helps users monitor their spending, set up budgets, and create and track progress on savings goals.

In March, Moven stopped offering the app directly to consumers, with CBW Bank in Weir, Kan. serving the accounts. It refocused on serving enterprise clients, which include TD Bank and Westpac in Sydney, Australia.

To begin with, the version of Moven that Q2 offers community banks will provide account aggregation with a simple bank account and a savings account, according to Kesh Talwar, CEO of Moven.

Later, banks will be given the opportunity to add features like loans and credit cards to the app.

Rahm McDaniel, vice president of strategic solutions at Q2, said, “We wanted to focus on something that could be implemented very, very quickly, [community banks] could begin the process of customer acquisition because of the climate that we're in and what COVID is doing to the customer landscape and pushing it into digital at an accelerating pace.”

Q2 offers a digital banking core processing system called CorePro that can handle the Moven mobile banking transactions and send the data into the bank’s existing core banking system.

The integration of CorePro and Moven's app provides software that is ready to be used by a bank.

“We think Moven has an ideal package that can be shrink-wrapped, and we can work on an integration plan in advance that will allow them to have that very quickly without having to disrupt the bank operations or the existing full-service core stack,” McDaniel said. Generally, Q2 will ship transaction data in a file to the general ledger of the community bank's existing core system.

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