AUSTIN, Texas–(BUSINESS WIRE)–Q2 Holdings, Inc. (NYSE: QTWO), a leading provider of digital transformation solutions for banking and lending, today announced that UK-based Knoma, which offers student loans without interest-free, partnered with Q2 Lending to reduce the average student wait time for loan decisions from months to less than two minutes. By leveraging Q2 Lending, which securely automates end-to-end loan management from application to repayment, Knoma has created a fast and cost-effective system to transform the student loan industry.
Knoma, which provides student loans to working adults and continuing education courses in technology-related fields, can now securely and accurately automate student loan decision making for more than 90% of its applications without having to need a secondary examination. Knoma CEO and Founder Brett Shanley said, “It would cost me millions if I spent all my time trying to build this kind of system from scratch, and it would take years to do it. Q2 did all of this for me at a fraction of the cost, while allowing the company to have a live MVP within 6 months.
“We have disrupted the student financing model by asking our education partners to pay the interest on the loan, instead of having the student pay. This allows us to offer fair and transparent funding to our students while ensuring that there are no hidden fees, and in return, our educational partners benefit from a gradual increase in their enrolment.
Q2 Lending, which integrates Q2 Originate, Q2 Portal and Q2 Loan, serves as the backbone of Knoma and provides students with a clean and modern interface from loan application to repayment. Knoma’s core system, powered by Q2, enables fast, accurate, and flexible workflows that configure and adapt to Knoma’s internal criteria for loan suitability and approvals, underwriting, compliance, risk assessment and identity verification. It automates loan deposits to universities and education partners, securely linking payments to students who have received funding and displaying transaction history to students and education partners.
The fully automated platform is able to push and pull data through multiple APIs, reducing the administrative burden and time typically associated with loan processing. Only 10% of loan applications require secondary review, reducing Knoma’s business costs and creating a flexible, scalable system that can easily be expanded.
Q2’s single-source backend seamlessly integrates with Salesforce and leverages other top fintechs to collect and evaluate multiple data points to make reliable lending decisions. Student identity verification is done through Onfido, credit history and banking data feeds through True Layer and Credit Kudos. Conga, available as an optional API on Q2’s platform, automatically populates the student loan agreement, collects the student’s signature, and helps manage repayment schedules.
“We are excited to work with Knoma to simplify and transform the loan process experience so students can continue their education,” said Ian Nelson, Managing Director EMEA, Q2. “By leveraging Q2’s innovation, Knoma has a reliable and flexible ecosystem that is globally scalable. We are proud to be part of this important work.
To learn more about Knoma and Q2 Lending:
BLOG: Second Quarter Loans Allow Knoma to Reduce Student Loan Assessments from Months to Minutes
VIDEO: Cercle FINTECH: “Responsible Fintech” with Q2 and Knoma.
UK-based Knoma, which offers interest-free and cost-free student loans, helps students start their lifelong learning journey today, spread the costs over interest-free installments and to access the knowledge market. To learn more, please visit Knoma.
About Q2 Holdings, Inc.
Q2 is a financial experience company dedicated to providing digital banking and lending solutions to banks, credit unions, alternative finance and fintech companies in the United States and abroad. With comprehensive end-to-end solution sets, Q2 enables its partners to deliver consistent, secure, data-driven experiences to every account holder – from consumers to small businesses and enterprises. Based in Austin, Texas, Q2 has offices around the world and is listed on the New York Stock Exchange under the symbol QTWO. For more information, visit Q2.com.