Q2, an Austin-based publicly-traded company that specializes in banking and lending technology solutions, has acquired ClickSWITCH, a 7-year-old Minneapolis-based fintech that developed a patent account-switching solution. Terms of the deal were not disclosed.

Why should we care?
Q2 offers a suite of technology solutions for financial services firms, including legacy banks and credit unions as well as fintechs. Digital banking, lending and personal finance management are two key areas the firm plays in, along with the banking-as-a-service market (it competes with other core banking providers). With ClickSWITCH, Q2 gains capabilities to help new account holders onboard by efficiently switching direct deposits and automatic payments to new accounts. Examples of companies that Q2 serves include fintech Qapital and Mercantile Bank of Michigan. Will Furrer, chief strategy officer at Q2, told TheFR that with ClickSWITCH, Q2 can address a key pain point for financial institution and fintech clients: converting their clients to become primary account holders. “There are a couple of things that make ClickSWITCH a special fit for the Q2 business. First, ClickSWITCH provides an impactful solution for BOTH the digital banking and Banking-as-a-Service market; and second, ClickSWITCH has the ability, due to a patented process and database of employer information, to help support paper-based [account] switches that must take place today.”