The second quarter announces the State of the Commercial Banking Market 2023 report

Austin, Texas – () –Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for banking and lending, will release its 2023 Commercial Banking Market Analysis Report on Thursday, January 26, following its State of Commercial Banking webinar at 2 p.m. CST. The report, which is based on insights from databases for the second quarter, is an annual review of the major trends in the commercial banking industry over the past 12 months, as well as a look at the challenges and opportunities ahead in the year ahead. The annual webinar provides an overview of the report’s findings and provides an exclusive insight into the trends and outlook of the commercial banking services market.

“Developments in the banking industry in 2022 have led to major changes in how financial institutions approach the marketplace, including how they think customer-facing and internally-facing technology,” said Gita Thulson, director of strategic advisory services for the second quarter. “Amid uncertainty in the macro environment, the data predicts that banks will begin to think about their digital investments more strategically, shifting their focus to using technology to drive efficiencies in back-end processes, smarter workflows, and more employee engagement.”

The findings of this report are based on PrecisionLender’s Q2 proprietary database of 2022 commercial lending deal flow, combined with economic data from several public sources, including the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, as well as industry research. Q2 PrecisionLender’s data reflects business relationships from more than 150 geographically diverse banks and credit unions in the United States, ranging in size from small community banks to top 10 US institutions. The report also reveals market trends in payment fraud activity based on Q2 Centrix Exact/TMS data from nearly 300 financial institutions across the US.

The report’s findings reveal five key points:

  • The economic outlook for 2023 is uncertain: Although some economic indicators point to a recession, the resilience of the labor market suggests that it will look different from recessions in the past.
  • Banks prepare for economic downturnsCommercial banks are increasing provisions for loan losses despite their consistently strong credit quality.
  • Renewed focus on deposits: Demand for loans exceeded the growth of deposits, which led to a rise in experimental deposits and intensified competition.
  • Digital access to the depth of financial institutions: Fintech partnerships and a focus on small business experiences top the list.
  • Payments innovation offers an opportunity: Digital advancements such as real-time payments, integrated accounts payable, and API integration for key systems such as ERP will help financial institutions of all sizes to compete.

“The findings of this year’s report reinforce the notion that the commercial banking market is at a pivotal point in its development,” said Thulson. “However, bankers are accustomed to dealing with these cyclical changes and have an opportunity to position themselves as trusted advisors to their clients to help them thrive while the market navigates unfettered waters.”

click here Learn more and register for the 2023 State of Commercial Banking webinar. All registrants will receive a copy of the report after the webinar.

To learn more about how Q2 delivers simple, smart and comprehensive banking and lending solutions to commercial financial institutions, visit: https://www.q2.com/commercial.

About Q2 Holdings, Inc.

Q2 is a financial expertise company dedicated to providing digital banking and lending solutions to banks, credit unions, alternative finance, and financial technology companies in the United States and internationally. With end-to-end suites of solutions, Q2 enables its partners to provide cohesive, secure and data-driven experiences for every account holder – from the consumer to small business and enterprise. Q2 is headquartered in Austin, Texas, with offices around the world and is publicly traded on the New York Stock Exchange under the stock symbol QTWO. To find out more, please visit Q2.com.

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