ClickSWITCH, a turn-key solution that simplifies and automates the switch of direct deposits and recurring payments for financial institutions new and existing account holders, announced today that it has raised $13 million in Series B financing. The funding was led by Commerce Ventures and Point72 Ventures. This round of financing will further accelerate ClickSWITCHs product roadmap, expand executive leadership, increase headcount within software development and sales teams, amongst other marketing plans for growth.
Headquartered in Minneapolis, ClickSWITCH provides a white-label banking solution to financial institutions, allowing customers to switch direct deposits and recurring payments in just a few minutes. The solution also enables financial institutions and fintechs the ability to fund new accounts and increase profitability of new account holders.
There is a battle for banking deposits underway across FinTech innovators and incumbent financial institutions. Players across the industry are finding that ClickSWITCH is a critical utility for onboarding and activating valuable new customers,” said Dan Rosen, Partner at Commerce Ventures.
“One of the biggest pain points around opening a new bank account is switching your direct deposit, which requires paperwork and involving your HR department,” said Tripp Shriner, Partner, Point72 Ventures. “ClickSWITCH has solved a true problem for consumers and financial services providers by seamlessly enabling people to redirect their paycheck to a new bank, improving customer economics and dramatically reducing friction and increasing choice for customers.”
Our investors confidence in ClickSWITCH reinforces the value of our solution within the banking industry, said Cale Johnston, CEO of ClickSWITCH. Since closing our Series A, we’ve gained fast momentum with our client base, prospects, and emerging fintechs looking to capture PFI status with their account holders. We remain focused on providing the best automated account switching solution available in the market for financial institutions and fintechs. We are eager to continue working with Commerce Ventures, Point72 Ventures and our other tremendous investors to further the growth of our customer base and expand our service offerings.
Date: May 16, 2019
Source: Global Banking & Finance Review