What to know about the sale of ClickSwitch:
- ClickSwitch, a Minneapolis-based fintech company that assisted banks in signing up new customers, is being purchased by Austin-based Q2 Holdings Inc., a publicly traded company that provides digital banking technology and software
- Terms of the sale were not released
- ClickSwitch will continue to operate in downtown Minneapolis
The Quote: Matt Flake, CEO of Q2
“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.”
To learn more about the sale, read the full release below.
AUSTIN, Texas–(BUSINESS WIRE)–Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of digital transformation solutions for banking and lending, today announced its acquisition of ClickSWITCH, a patented digital account switching software-as-a-service (SaaS) solution that has transformed how financial institutions and financial technology companies (fintechs) attract and retain new primary account holders. The acquisition reflects Q2’s ongoing mission to build strong and diverse communities by strengthening financial institutions.
ClickSWITCH, a privately held company based in Minneapolis, MN, was founded in 2014 to provide a digital account switching solution for financial institutions and fintechs. ClickSWITCH is designed to simplify the process of bringing new account holders onboard by quickly, safely and efficiently switching direct deposits and automatic payments to new accounts. With more than 450 customers, ClickSWITCH can allow financial institutions and fintechs to make account switching easy, capture more deposits, rapidly and consistently gain primary account provider status, and increase their profitability.
“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,” said Matt Flake, CEO of Q2. “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.”
ClickSWITCH has successfully helped more than 450 financial institutions and fintechs acquire the primary relationships with their account holders. Some of the benefits customers have achieved by using ClickSWITCH include the following:
Gather Deposits – Using ClickSWITCH, customers have realized gains in deposits, helping them drive positive margin lending programs and further engage account holders.
Reduce Friction – With ClickSWITCH, financial institutions and fintechs of all kinds have decreased their primary account acquisition costs – creating immediate and long-term positive ROI related to account acquisition.
Position for Growth – With ClickSWITCH, financial institutions and fintechs are more likely to increase cross-sales related to credit and debit card activation and utilization – driving positive experiences and increased non-interest income for the business.
ClickSWITCH’s innovative, automated deposit switching solution streamlines the process for end users to change their account for automatic deposits via direct integrations to thousands of employers, payroll providers and financial institutions. This automated and assisted process for end users is designed to yield very high completion rates and seamless transfers for financial institutions and fintechs in onboarding end users. Bolstering Q2’s best-in-class portfolio of digital banking offerings with ClickSWITCH’s digital account switching solutions will expand Q2’s market reach, further drive innovation and deliver greater value to Q2’s customers.
“Q2 is a recognized leader in providing innovative solutions for financial institutions and other fintech providers,” said Cale Johnston, founder and CEO, ClickSWITCH. “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.”
Financial terms of the transaction were not disclosed.
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 U.S. and internationally. With comprehensive end-to-end solution sets, Q2 enables its partners to provide cohesive, secure, data-driven experiences to every account holder – from consumer to small business and corporate. Headquartered in Austin, Texas, Q2 has offices throughout the world and is publicly traded on the NYSE under the stock symbol QTWO. To learn more, please visit Q2.com.
About ClickSWITCH
ClickSWITCH is a digital account switching solution for financial institutions and challenger banks that simplifies the process of bringing new account holders onboard by quickly, safely and efficiently switching direct deposits and automatic payments to new accounts. The company enables financial institutions to make switching easy, capture more deposits, rapidly and consistently gain PFI status, and increase profitability. For more information, visit www.clickswitch.com
