ClickSWITCH, which made its Finovate debut earlier this year at FinovateSpring, has unveiled its partnership with Current, a digital bank launched in 2016. Current has used the ClickSWITCH API to build and design a customized UX that makes it easy for members to switch direct deposits to their checking accounts.
“We are excited to be providing direct deposit technology to Current’s banking solution,” Founder and CEO of ClickSWITCH Cale Johnston said. “Current is on the leading edge of an industry that is evolving at a rapid pace. They are adding new users at a very impressive rate, and we believe our solution will increase user adoption for their growing platform.”
ClickSWITCH offers banks and other financial institutions a turn-key solution that automates the switch of direct deposits and recurring payments for account holders. The company’s automated account holder acquisition technology makes onboarding easier and faster, enabling FIs to improve customer acquisition and account activation rates, ease the funding of new accounts, and increase the number of primary account holders.
Current bills itself as “a bank built for modern life.” The institution, launched in 2016, provides an iOS/Android banking app, and a Visa debit card with no minimum balance or overdraft fees. With more than 400,000 active accounts, Current offers a variety of innovative options for customers such as its Teen Checking Accounts and Early Direct Deposits. Current founder and CEO Stuart Sopp highlighted the bank’s Early Direct Deposit program, which allows customers to access their paychecks up to two days in advance, as a major beneficiary of ClickSWITCH’s technology.
“For more Americans, changing where their paychecks are deposited is the best measure of truly switching banks,” Sopp said. “By partnering with ClickSWITCH, we’re able to make that process far more seamless and offer a better customer experience for our account holders – which is always our top priority at Current.”
Founded in 2014, ClickSWITCH is based in Minneapolis, Minnesota. The company demonstrated its automated direct deposit switch technology at FinovateSpring 2019. ClickSWITCH has raised $17.1 million in funding, and counts Point72 Ventures and Commerce Ventures among its investors.
Earlier this year, the company partnered with fellow Finovate alum Digital Onboarding to enable Old Point National Bank to update and switch direct deposits and recurring payments more efficiently. Last spring, ClickSWITCH worked with virtual branch app provider Mobilearth to add a new direct deposit switching feature to Mobilearth’s roving teller dashboard.
The Series B was led by Commerce Ventures and Points72 Ventures, and will help the company accelerate its product roadmap, add to its executive leadership ranks – as well as to its sales and development teams – and contribute toward the firm’s overall growth.
ClickSWITCH CEO Cale Johnston underscored the momentum the company has experienced with clients and prospects since closing its previous, Series A round. “We remain focused on providing the best automated account switching solution available in the market for financial institutions and fintechs,” Johnston said. “We are eager to continue working with Commerce Ventures, Points72 Ventures, and our other tremendous investors to further growth of our customer base and expand our service offerings.”
Founded in 2014, ClickSwitch offers financial institutions a white-label technology that enables customers to easily and quickly switch their direct deposits and recurring payments when opening new accounts. In addition to improving the process for banking customers, the solution makes it easier for FIs to onboard new customers by making new account funding a faster process.
Commerce Ventures Partner Dan Rosen referred to the landscape as a “battle for banking deposits” between banks and fintechs. “ClickSWITCH is a critical utility for onboarding and activating valuable new customers,” he said. Point72 Venture’s Tripp Shriner added that changing direct deposits was one of the “biggest pain points” for banking consumers when it comes to opening a new account. ClickSWITCH, per Shriner, “dramatically reduce(s) friction … increasing choice for customers.”
This latest round of funding puts ClickSWITCH’s total capital at $17.1 million. Earlier this year, the company announced a partnership that would bring its account switching solution to Virginia’s Old Point National Bank. ClickSWITCH demonstrated its technology at FinovateSpring in May. Video of the company’s live demonstration will be available soon.
A look at the companies demoing live at FinovateSpring on May 8 through 10, 2019 in San Francisco, California. Register today and save your spot.
ClickSWITCH is an account acquisition technology for financial institutions and fintechs that automates the process of switching direct deposits and automatic payments.
Automated switch solution for direct deposits and automatic payments
Ability to drive deposits and increase primary account holders
API capability enables you to build and design your own user interface
Why it’s great There’s a war for deposits in financial services. FIs are fighting to be the primary financial provider for their customers. ClickSWITCH can solve these problems by driving deposits and increasing efficiency.
Cale Johnston, Founder & CEO Johnston is an entrepreneur who believes banking should be easy. He oversees global business strategy with a focus on innovation, growth, and investor and customer relations. LinkedIn
Adam Pearl, Regional Vice President of Sales Pearl is an experienced, results-driven sales leader specializing in bank technology. He is working out of Chicago with a focus on relationship management and national customer growth. LinkedIn