Q2 software helps P2Ps to scale

Peer-to-peer lending platforms have never been so busy. Between ongoing regulation, a rush of new yield-seeking investors, and a rapidly changing borrower landscape, many platforms are struggling to keep pace with their administrative needs.

Luckily, as the P2P sector expands, more scale-up solutions are becoming available.

Q2 has been working with P2P lenders for many years, and it offers a unique end-to-end solution that can help ease the administrative burden on P2P platforms, while helping them to scale up their business as we emerge from the pandemic.

“The typical feedback that we get from our alternative finance clients is we’re the one true provider in the market that’s end-to-end,” says Ian Nelson, managing director for Q2 in EMEA.

“They find other providers that can do parts of the journey but we are one of the only ones that can do the full journey, end to end from their client engagement all the way through to termination and delinquency.”

Q2 is a New York Stock Exchange listed Software as a Service (SaaS) business based out of Austin, Texas. It originally provided account opening and deposit-taking services to regional banks across the US, but 17 years later it has spread to become a global business which offers an end-to-end solution for digital banking and fintech businesses.

In addition to working with banks, Q2 also provides origination capabilities for financial institutions – including P2P lenders – who wish to originate loan transactions.

Over the past few years, Q2 has been working closely within the fintech market, helping them provide niche solutions to the marketplace and provide a strong alternative to banks.

“One of the solutions that we have is to use our portal technology, our engagement platform with external clients integrated with our origination capability and our ability to book loans for clients and overlay that with a solution called ‘marketplace’ that allows the investment in the loans from an investor perspective,” says Nelson.

Read more: Brokers preferred alternative lenders for Covid loans

“In the P2P market we’re able to satisfy all aspects of the P2P model, and we actually do have a client who is just very shortly due to go live using that mix of modules.”

That client is Folk2Folk – one of the largest P2P platforms in the UK, which specialises in rural business and property lending.

Q2 offers a series of modules, which can do everything from originations to managing delinquencies. This means that each client can essentially build a bespoke software solution based on their specific needs.

For example, Folk2Folk has chosen to use Q2’s portal technology to engage with clients and investors, as well as their origination solution which helps them to manage the origination process. They also use Q2’s loan technology to book and manage deals, and they use marketplace to oversee loan investment activity.

“Not only that, but we also provide portal capabilities for the investor,” says Phil Swift, customer success manager for Q2’s EMEA clients.

“So all of this can be done online, which provides an incredible end-to-end platform that truly is end-to-end.

Read more: Folk2Folk doubles its profits

“With a great track record of implementing the system with live clients, I think we’re well placed to help the UK’s P2P market expand, to provide a solid platform for that expansion, to provide something that can be rapidly implemented and deployed in the customer environment.”

Q2’s services can provide an agile, highly automated platform, allowing financial institutions to concentrate their efforts on the smaller number of transactions that may need manual oversight. Ultimately, this means that P2P platforms can focus on what they do best and scale up accordingly.

“We’re able to support clients from early stage growth – from when they’re getting their first seed capital all the way through to when they scale,” says Nelson.

“Together we are heavily positioned to support the alternative fintech sector, have real appetite and ability to support the P2P sector.”

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