ClickSWITCH, a Minneapolis based financial payments company, has announced that they had secured $13 million Series B Funding.
This round was led by Commerce Ventures and Point72 Ventures.
ClickSWITCH provides a white-labeled product that helps new and existing bank customers simplify and automate direct deposits and recurring payments. Banks are excited about this technology because it helps streamline new account set ups.
This makes the new customers easier to engage and more profitable for the banks. Customers of the banks like the technology because it makes setting up accounts much easier and often does not require a bank visit.
For example, in a recent press release about their adoption of ClickSWITCH, Old Point National Bank President and CEO, Rob Shurford said, “When someone takes the time to move their banking relationship to Old Point, we want to make the process as simple as possible. ClickSWITCH’s unique technology makes the cumbersome process of moving recurring payments and deposits simple. Plus, with the Digital Onboarding platform, new customers will have all of the information they need to enroll in account-related services at their fingertips and we’re proud to be the first bank in Hampton Roads, VA to offer this unique service.”
This ability to provide direct benefit to banks and consumers was part of the attraction by Commerce Ventures. Dan Rosen of Commerce Ventures described it this way: “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.”
Point72 Ventures was also attracted to the problem and solution. Tripp Shriner, partner at Point72 Ventures said, “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. ClickSWITCH has solved a true problem for consumers and financing services providers by seamlessly enabling people to redirect their paycheck to a new bank.”
The $13 million financing follows an earlier fundraising of $3.5 million in August of 2018. The new infusion of cash will be utilized to help the company accelerate its product roadmap, expand executive leadership, and expand marketing and sales teams.
For more information on the company, check out their website at www.clickswitch.com.