The Future of Banking Tech Is Coming

Drew Norman

There’s an old baseball adage: "You can't win the pennant in April, but you sure can lose it."

Digital banking is no different. The future of banking tech is around the corner, but the decisions financial institutions make today will determine who’s ahead tomorrow.

At CONNECT 25, Q2 CEO Matt Flake and CTO Adam Blue sat down for a candid, on-stage conversation about the industry’s most pressing topics. During their discussion, they urged banks and credit unions to recognize their unique position and capitalize on the opportunities in front of them.

Here are six key takeaways to summarize their conversation.

Our world will only become more connected, not less

Financial institutions have something incredibly powerful at their fingertips: data. But the real power comes into play when you make this data actionable and extendable.

In today’s connected world, people expect their data to move with them across various functions, tools, and providers—whether that’s Venmo, Yardi, or wherever they do business. Opening and extending your account holders’ data is key to powering seamless experiences and building stronger relationships with them.

And with the privilege of this data comes the responsibility to make a meaningful difference with it. But as Matt says, you don’t have to “eat the whole elephant”—you can get big results from starting small.

For example, one Q2 customer tapped into its user data to pinpoint a niche but important member segment: those using payday lenders. Once they identified these members, the credit union performed targeted outreach to set them up with better, lower-interest loans through their institution—ultimately helping 2,500 members stabilize their finances while driving loan growth.

To win business customers, ERP integration is a must

ERP, or enterprise resource planning, is quickly becoming one of the most important capabilities a financial institution can offer. To put it simply, running a business is complicated, and end users don’t want to bounce between two screens to do one task. And since commercial customers often handle significant sums of money, providing a comfortable experience is paramount.

Luckily, real-time integration is coming, and it will quickly go from a nice-to-have to a must-have. As commercial entities and SMBs look for financial institutions moving forward, direct ERP integration will certainly be a deciding factor. Now is the time to put your institution in a position to win their business and grow your own.

Innovation is everywhere—tap into it

You can’t build everything, and you don’t have to. In the race to innovate, the goal shouldn’t be to reinvent every tool your account holders might need, but to allow access to them in an efficient, scalable way.

That’s why partnering with top-tier financial services providers often beats owning the fourth-best version of something. According to Matt, “that’s a road to mediocrity.” In fact, our realization that partnership breeds success was the impetus behind Q2 Innovation Studio.

By helping financial institutions tap into a broader fintech ecosystem without sacrificing trust or control, we’ve expanded the services we’re able to offer, helped our customers reach more end users, and amplified the creativity around us. Because, after all, innovation makes for a better team sport than a solo journey.

Implement AI with intention and keep human connection at the center

Artificial intelligence is the tool of tomorrow, but it’s not a cure-all. And while it may feel new, AI has quietly improved processes behind the scenes for decades.

When the latest AI buzz emerged, everyone felt pressure to jump in and build something, anything, to keep pace. But as financial institutions face churn and half-baked models pile up, there’s a clear takeaway: deploying AI effectively is a marathon, not a sprint.

We believe it works best when used with intention—not as a replacement, but as a complement to the people behind the work. If you’re using AI to streamline customer support, for example, let it handle the back-end operations while ensuring the last touch is always human.

At the end of the day, it’s important to remember that no matter how advanced your technology gets, banking has and always will be built on trust.

Reliability is your silent strength

People are doing more in the digital channel than ever before, and they’re relying on you to help them do it quickly and safely. Moving your customers’ money is more than a transaction—it’s a matter of them getting their paycheck on time, making their rent payment, or transferring funds for their business.

We understand that reliability isn’t a feature, it’s a core part of your brand promise—and it often goes unnoticed until something goes wrong. At Q2, we’ve made real changes to how our teams operate so we can respond better and faster in support of your brand promise.

As Matt says, “the larger we get, the smaller we have to act.” And quite frankly, this philosophy applies to your financial institution too. Together, we must remain focused on the basics and treat everything with extreme care—whether shiny and new, or legacy and load bearing.

On the path to core modernization, don’t bring old baggage on a new journey

The core of yesteryear doesn’t fit in today’s world. Your original systems weren’t built for 24/7 access, real-time updates, or the demands of modern digital banking—and that’s okay. But expecting that a mere lift-and-shift to the cloud will solve all your problems is wishful thinking.

The truth is, some parts need to be rebuilt, rethought, or even retired. It’s a heavy lift, but it will pay off in stability, scalability, and long-term savings. If you’re going to move forward, make sure your foundation is ready for the road ahead. No one wants a new car that breaks down half-way home from the dealership.