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Q2 Holdings (QTWO) to Enhance LAPFCU's Digital Banking Services

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Q2 Holdings Inc. (QTWO - Free Report) has collaborated with the Los Angeles Police Federal Credit Union (“LAPFCU”) to provide digital services for law enforcement members. LAPFCU serves more than 45,000 law enforcement personnel and their families.

LAPFCU will transition to QTWO’s industry-leading platform, incorporating Q2 Innovation Studio and Q2 Marketplace. The Q2 Innovation Studio provides fintechs and financial institutions with technical tools, while the Q2 Marketplace facilitates faster delivery of innovative solutions by connecting developers directly with account holders.

This will help the LAPFCU incorporate third-party solutions into its digital banking ecosystem and offer services directly to its members. The LAPFCU members will also be able to access a wide range of digital financial services, similar to in-branch and call center capabilities.

In the past year, Q2 Holdings has signed several digital banking deals with credit unions. However, the company faces tough competition from Jack Henry and Associates (JKHY - Free Report) , Alkami Technology (ALKT - Free Report) and NCR Voyix Corporation (VYX - Free Report) in this space.

Jack Henry and Associates competes with QTWO in the processing side of the digital banking market. Alkami Technology and NCR Voyix compete with Q2 Holdings in the small medium business sector of the digital banking space.

Despite this, QTWO has a reputation as a top digital banking provider, offering unified retail, small business and commercial solutions. These solutions help financial institutions boost their deposits. In the fourth quarter of 2023, Q2 Holdings gained significant clients in the banking sector, with seven of the top 15 North American banks now using its relationship pricing solutions.

The company is also benefiting from securing contracts in retail, small business and commercial digital banking across Tier 2 and Tier 3 segments, with favorable macroeconomic conditions as a tailwind.

Currently, QTWO and JKHY carry a Zacks Rank #2 (Buy) each. ALKT and VYX carry a Zacks Rank #3 (Hold) each at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

QTWO, JKHY and ALKT have returned 112.2%, 84.8% and 5.1%, respectively, in the past year. Shares of VYX have plunged 47.9% in the same time frame.

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