Q2 acquires ClickSWITCH to ease the account switching experience for account holders
By Pavithra R
Q2, a leading provider of digital transformation solutions for banking and lending, has announced its acquisition of Minneapolis based ClickSWITCH, a patented digital account switching software-as-a-service (SaaS) solution that has transformed how FIs and FinTechs attract and retain new primary account holders. Financial terms of the transaction were not disclosed.
The acquisition reflects Q2’s ongoing mission to build strong and diverse communities by strengthening FIs. The deal is expected to bolster the company’s portfolio of digital banking offerings. ClickSWITCH’s digital account switching solutions will expand Q2’s market reach, further drive innovation and deliver greater value to Q2’s customers.
Founded in 2014, ClickSwitch is a digital account switching solution for financial institutions and challenger banks that simplifies the process of bringing new account holders onboard by switching direct deposits and automatic payments to new accounts. It enables FIs to increase deposits, primary account holders and profitability. The firm processes financial account switches faster securely, with comprehensive coverage across North America. Its solution helps clients to increase account holder acquisition and activation rates, engage during onboarding, and cross-sell products to capture full profit potential.
“A major challenge that financial institutions and fintechs face is converting their clients to become primary account holders. We believe Q2’s acquisition of ClickSWITCH will enable us to help our customers efficiently solve this pain point and drive account profitability. We also believe that with ClickSWITCH we can help our customers provide their account holders with a more streamlined, frictionless experience, by offering an end-to-end digital customer acquisition, onboarding, and account switching solution,” said Matt Flake, CEO of Q2.
ClickSWITCH has helped more than 450 FIs and FinTechs acquire the primary relationships with their account holders. Some of the benefits customers enjoy by using ClickSWITCH include:
- Gather Deposits: ClickSWITCH enables customers to gain in deposits and help them drive positive margin lending programs and further engage account holders.
- Reduce Friction: It enables FIs and FinTechs of all kinds to decrease their primary account acquisition costs, creating immediate and long-term positive ROI related to account acquisition.
- Position for Growth: ClickSWITCH enables FIs and FinTechs to increase cross-sales related to credit and debit card activation and utilization, driving positive experiences and increased non-interest income for the business.
“Q2 is a recognized leader in providing innovative solutions for financial institutions and other fintech providers. As a combined force, we look forward to solving a fundamental issue that banks, credit unions and fintech companies face – managing the complexity and administrative burden of account switching – by providing the most comprehensive and differentiated digital account switching solution in the market. We are delighted to be joining the Q2 team and look forward to delivering best-in-class financial solutions,” said Cale Johnston, founder and CEO, ClickSWITCH.
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