Small businesses need you – three ways to attract and retain your community’s businesses

Small businesses need your business as much as you need theirs. Since the advent of the modern banking system, small business owners have relied on regional and community financial institutions (RCFIs) to help them start their businesses, grow their businesses and maintain their businesses. In fact, as recently as 2013 RCFIs accounted for approximately 75% of all small business loans in the United States.

Since then, however, the ranks of RCFIs have continued to decline, mega banks have proliferated, and alternative lending sources such as Lending Tree, Quicken Loans and the Lending Club have provided entrepreneurs yet another source of funding to compete with RCFIs’ share of the small business market. And that’s to say nothing of the myriad non-traditional financial services providers offering innovative payments and digital banking solutions to small business owners.

Fortunately, in spite of the multiple forces working against RCFIs today, this fact remains: small business owners prefer to bank locally. They understand that the relationships and local insight of RCFIs is invaluable to them and their businesses, and something the mega banks and others competing for their business simply cannot provide. But in an ultra-competitive environment, with a seemingly infinite number of options available to small business owners, what can institutions like yours do to continue earning their business? Below are three best practices sure to increase your odds of winning the battle for small business market share in your community.

Invest in Technology

A no-brainer if ever there was one, right? You’d think so, but the reality is that consumers view the mega banks as technologically savvier than their RCFI counterparts because their websites, in many cases, are better; i.e., they look better, are easier to navigate and display equally well on mobile devices. So the first order of business for RCFIs looking to compete for small business clients, or any account holders for that matter, is to update their website. A fresh, modern looking website, that renders equally well on a mobile device, will significantly increase your odds of converting a website visitor into a new client.

Speaking of mobile devices, a survey conducted by ath Power Consulting found that nearly 70% of small business owners would switch banks in order to partake of better mobile banking services – 70%! Your typical small business owner isn’t generally sitting behind a desk all day; they’re hustling to generate new business, take care of existing clients and manage the day-to-day affairs of their company. Providing them a tool that enables them to deposit checks, transfer funds, authorize wire transfers and manage their cash flow while on the go is an invaluable service, one they’re more than willing to pay you for; as much as $100 a month, according to the Aite Group.

Become a Resource

Sir Francis Bacon is credited with coining the phrase, “Knowledge is power.” If ever there was a group this sentiment applied to it’s small business owners. As a RCFI you’re better positioned to provide the knowledge your local business owners need to be successful than arguably any other source they could tap. You’re privy to local housing data, commercial loan data, local zoning data, employment data and much more, all of which are extremely valuable to area entrepreneurs and small business owners. Positioning your institution as the subject matter expert on all things small business related is one of the smartest moves you can make.

As local business owners, and prospective business owners, begin utilizing the information you provide, something magical happens: trust forms. Whether the partakers of the information you provide realize it or not, you have become a trusted resource to them. A phenomena that is particularly powerful with business owners whose accounts you don’t yet hold; i.e., new business. It may take longer for some than others, but eventually they’ll think, “Wow, if this FI is willing to provide all this valuable information to me when I’m not even a client, what would they do for me if I were a client?” Become an invaluable resource to your local business community, and they’ll reward you with their business—guaranteed.

Market Your Wares

“I would’ve used my local bank for everything, if I would’ve known they offered it.” Those are the words of Chris, a small business owner who operates a mobile coffee service in Austin, TX, when asked why he doesn’t use the mobile business product his local bank provides. A sentiment all too common among small business owners. The same ath Power study cited above produced one particularly tragic finding: in 839 in-branch visits by prospective small-business customers, nearly 40% of bankers failed to mention the mobile banking services they offered. The savviest consumer in the world can’t buy something they don’t know about. To gain more business clients, you gotta tell ‘em about all the great business products and services you have to offer them, and what those products and services will do for them.

Which really isn’t difficult, and dovetails nicely into point number two about positioning yourself as the small business subject matter expert in your community. Billboards, radio, print ads and statement stuffers will likely always have a place in your marketing budget, but there are other, more effective means of getting the word out, which also happen to be less expensive and serve to position you as the invaluable resource you’re aiming to be. Examples, in no particular order, include: creating a business resource center on your website, chock full of valuable small business related info; producing a small business blog, where your in-house commercial loan officers and others can provide valuable tips and information; host workshops or seminars in-branch where small business owners, and aspiring small business owners, can learn about things like managing cash flow, accessing lines of credit and how the commercial loan process works; spread the word via Twitter, Facebook and other social media outlets; and last but not least, educate your front line folks on all the valuable products and services you have to offer small business owners.


It’s no secret in banking circles that business banking clients are a good thing. They maintain higher balances, are more willing to pay for products and services than retail account holders and the relationships you build with them result in greater lending opportunities. What doesn’t appear to be as widely known, however, is just how badly business owners need you. They need your technology, your expertise and your support. By investing in the tools they need, becoming the resource they need and making them aware of both, you will absolutely grow your business, their business and strengthen the communities you both serve in the process.

Opening the doors to more women in STEM fields

Four years ago I read Gloria Feldt’s No Excuses: 9 Ways Women Can Change the Way We Think About Power and it changed my career. It taught me about the ways in which our ancestors fought to open doors—both professionally and personally—for women in our nation and yet many of us do not take advantage of these opportunities. Yet, statistics show that today women only make up 24 percent of the STEM (science, technology, engineering, and mathematics) workforce in the U.S. I am proud to be a small representative of it, and am happy that my company continues holding open the doors that Feldt discussed.

At Q2, women compose almost half of the User Experience Design team – with numbers increasing in development, QA and C-level positions. So, I cannot help but wonder: Why aren’t more women stepping through the doors of innovative companies like Q2?

While I can’t answer this question with certainty, I would like to present reasons for businesses and employees alike to take notice.

Business Advantages in Hiring Women

1.  Improvement of complex decision-making: Diversity of all kinds increases the chances that complex decisions will be made correctly. Certainly those of us working in STEM fields face a number of complex decisions every day.

2.  Competitive talent: To remain competitive with other businesses in these fields, and for the U.S. to remain a viable member of the global economy, we must support the caliber of employees in STEM roles. An obvious and largely untapped talent pool is young women, who in 2013 were 21 percent more likely than men to graduate with a bachelor’s degree, and account for almost half of all students in MBA and MD programs.

3.  Greater innovation: Different points of view generate fresh ideas—that’s just common sense. And isn’t innovation what technology is all about? It’s worthwhile to note that few women contributed to the first design of the airbag, resulting in airbags that were well-suited to protect men’s bodies, but failed to adequately protect women and children.

4.  Stronger market strategies: It may be old news that, with their increased purchasing power, women are responsible for the majority of household buys. But this applies to technology consumption as well. A study performed by OgilvyAction showed that women significantly outpaced men in their usage of mobile apps related to health, entertainment, lifestyle, social networking and gaming. A fair representation of women in technology companies could help us identify with and better serve this growing consumer base.

5.  Profitability: Last, but certainly not least, companies with the highest representation of women in senior management delivered 53 percent higher return on equity and 42 percent higher return on sales than those with the lowest numbers of female senior managers. That kind of difference in the bottom line is difficult to ignore.

Both men and women can bring awareness to this growing need of women in the workforce, not just STEM fields. Here are ways in which you can make a difference in your industry.

How to Make a Difference

1. Share knowledge of job openings with a smart woman in your network.

2. Offer to review a friend’s resume.

3. Encourage female coworkers to attend empowering seminars with you.

4. Suggest that experienced female employees adopt younger female mentees.

5. Expose these formerly unconventional fields to your daughter, niece, or other young women in your family at early ages.

It is up to us to understand the need for women in STEM fields. Acknowledging your power to incite change in these areas could alter the future of our businesses.

What cyber security lessons were learned in 2014?

Arguably, 2014 will be remembered as a year that left its mark on the state of cyber security across the industry. From massive retail data breaches to cyber attacks waged by nation states against organizations, the widespread impacts led to unprecedented repercussions. These types of attacks can cause brand damage, increased audit scrutiny and significant loss of market share. Let’s take a closer look at what we saw in 2014.

Massive Retail Breaches

2014 was a record year for retail data breaches – at least in terms of number of records lost. Between Home Depot, Target and JP Morgan Chase, nearly every American felt the impact in some way, shape, or form. And while the large retailers occupied the mainstream headlines, a slew of small and mid-size retailers experienced similar breaches. POS (Point-of-Sale) systems became a popular target for criminals, as they obviously play a significant role in processing financial transactions. This, coupled with the increased demand for stolen credit cards, had a significant impact on the surge of malware targeting POS systems. Until merchants and manufactures get serious about securing these terminals and their networks, they will remain a rich target for cyber criminals.

Sophisticated Banking Trojans

An underground market once dominated by ZeuS, Carberp, Citadel and SpyEye has given birth to more advanced variants and copycats boasting additional functionality and capabilities. In 2013 nearly a million new banking malware variants were uncovered, which more than doubled the volume of the previous year.  Institutions amped up their security to protect against these threats, but the rise of banking malware continued into 2014 as fraudsters tried to stay one step ahead. Last year we were introduced to Kronos, Emotet, Dridex and Dyre. Although core functionality (e.g. stealing online banking credentials) still existed, these newer variants included enhancements in the form of anti-detection techniques and intelligent communication mechanisms.

Surges in Crypto-malware

Researchers observed a global surge in the occurrence of crypto-malware families such as CryptolockerCryptodefense and Cryptowall. Cryptomalware is a particularly sinister threat that encrypts data on a compromised device and then attempts to extort money from the victim in order to have the data decrypted. Across the world, we watched as crypto-malware targeted a wide range of victims, from state governments to small towns, and large corporations to the average consumer. Faced with really no other option, most victims reluctantly paid the demanded ransom, crossing their fingers and blindly trusting their data would be restored. Unfortunately, this wasn’t always the outcome.

Attacks Aimed at the Weakest Link

The threat of attack directed towards the human element of security had been predicted. Frankly, it continues to prove to be the easiest path of resistance and yields a high rate of success. Attackers are no longer “throwing the kitchen sink” in hope the victim bites at the phish. Instead, techniques evolved as social engineering efforts became more specially crafted, targeting the victim in a manner that increased the chance the victim would divulge information or perform actions that would be unlikely in ordinary circumstances. Well-planned attempts targeted the back office at financial institutions, and fraudsters impersonated legitimate customers and coerced victimized employees into approving fraudulent transactions.

2015 and Beyond

So, what does 2015 have in store? Not surprisingly, we should probably be hedging our bets towards more of the same. However, I strongly believe institutions can tip the scale of power in their favor. Security requires vigilance and accountability. The threats we face are too pervasive to allow us to believe we can prevent them all. Financial institutions must leverage the right technology solutions that not only help defend against these threats, but also provide real-time detection. Ideally, these solutions can improve our ability to not only respond, but also remediate all types of attack. Tipping the scale, we greatly improve our chances for winning this ongoing fight.

Words Have Meaning…Names, Power

The Patagonian Toothfish proved to be so popular that several years ago there was concern the species was on the verge of ecological collapse. How is it possible you’ve likely never heard of this fish, yet enough of it is sold and eaten each year to threaten its viability? The ugly creature was remarkably unpopular until it was marketed under the more attractive and exotic name, Chilean Sea Bass, by an enterprising fish wholesaler.


Everything from fish names to product and feature titles is responsible for creating powerful first impressions for consumers. Based on consumer impressions, products and features either experience widespread adoption or massive failure. Specific to financial services, here is a more concrete example: Mobile Remote Deposit Capture. If you’re a banker or commercial client, this is a great name for taking a picture of a check and depositing it remotely, versus driving to the local branch. However, if you’re a consumer, this is jargon. Taking high-value business-centric features like the remote capture of a check for deposit to consumers is a great way to create a high-value, self-service workflow. However, the packaging and naming must create logical connections and context associated with the features. Essentially, you have to create a brand around the feature for consumers to connect with and embrace.


The more complex the function, the more important it is to create an intuitive message about the what and why of a new feature. Without establishing a relatable name, value proposition and brand, consumer adoption and satisfaction of valuable workflows and features are likely to lag. Naming, branding, and complexity are key elements to consider when delivering business services to consumers in ways that delight, rather than frustrate them.


Products and services are named with the same goal in mind: to say something about the product that a lengthy explanation cannot. Easy Deposit is a tremendously popular name for Retail Mobile Remote Deposit Capture because it communicates the benefits of the feature. The emphasis is on the function (deposit) and the benefit (ease). The value proposition is built into a simple name that provides the context for use and a promise of why consumers should care.


The second key component of bringing a business-oriented service to the consumer space is to think about the complexity of the task required to achieve the result. Transfers from a locally held account to an account at another financial institution via online or mobile banking are typically fulfilled via the ACH network, but not presented this way to retail customers. Given the lack of familiarity with ACH processing, a feature called ACH payment would be confusing. Therefore, further exploration for a name that creates context for consumers is vital for success.


Beyond the naming, this feature’s adoption benefits by reducing the choices of how the transfer is made, as well as the complexity required to set it up. Rather than a model in which end users create a recipient and bind an account triplet (ABA, account number, type) for the external account, the workflow for identifying the target account is simplified and broken into multiple steps, each step with an explanation of the required data and how to obtain it. Addressing the how in this case will prove as valuable to consumer adoption as addressing the what,demonstrating the power of fusing naming conventions and technology.


Finally, in this particular example, careful consideration of the entry point for this feature, which is often the transfer menu item, should be considered. The typical distinction between an internal funds transfer and an external ACH-fulfilled transfer is likely hidden or invisible to consumer banking customers. After a self-service linking process (often involving micro deposits), the external accounts should be presented alongside the account holder’s internal accounts as options for transferring funds.


Packaging, including naming and reviewing workflows, will greatly influence how consumer banking customers will perceive the value of business features or services.  Creativity and workflow review will make the difference between success and failure.  Ensure the features and benefits are easy to discover, use, recall and share. Ultimately, a well-packaged feature may require significant effort to repackage and market, but without this effort, business features are likely to live in obscurity – like the nearly forgotten Patagonian Toothfish – rather than embraced and adopted by millions.


This article was originally printed in the September/October 2014 issue of Western Banker magazine.

Our Shared Responsibility: Q2 Honors National Cyber Security Awareness Month

Sponsored by the Department of Homeland Security, National Cyber Security Awareness Month celebrated its 11th year this October. Each year, this month serves as an opportunity for not only Security professionals, but also consumers, small and medium sized businesses, corporations, and financial institutions to spread awareness and share information about Cyber Security.

The theme of National Cyber Security Awareness Month for 2014 was “Our Shared Responsibility.” As we’re constantly connected to the internet, our risk of exposure to theft, fraud, and abuse is significant. Cyber Security attacks can affect our finances, identity, and privacy making it an important national security priority.

Throughout the month, Q2 presented a weekly series of Security presentations with the goal of educating its employees of not only the risks and threats the Security team sees on a daily basis, but also countermeasures they can use to protect themselves and the company. Topics such as how to recognize social engineering attempts, information about security threats such as Heartbleed and POODLE, and a demonstration of common hacking techniques were presented to Q2 employees to increase awareness of Cyber Security protection.

By the end of the month, the Q2 Security team recognized a notable increase in the awareness of Cyber Security amongst coworkers. Employees are actively reporting suspicious emails and seeking out the Security team for advice about personal Cyber Security. By opening a dialogue with our employees about the importance of Cyber Security, Q2 is helping to protect our customers, our employees, and our company.

Cyber Security awareness doesn’t end in October. We encourage you to make security-minded thinking a part of your day-to-day routine. Talk to your account holders and employees about Cyber Security awareness and security basics. Education and information are the first steps in combatting Cyber Security threats. If you have questions about Q2’s Cyber Security recommendations and best practices, please feel free to reach out to the Q2 Security team by contacting Jean Twaddell at