Digital banking solutions provider for community-based FIs, Q2 Holdings has announced an agreement to acquire fellow Finovate alum, Cloud Lending Solutions. Terms of the deal were not immediately disclosed, though the transaction has been approved by the boards of directors for both companies.
“By acquiring Cloud Lending, we will be able to help our community and regional financial institutions more effectively manage and grow their lending portfolios – their fundamental income-generating activity,” Q2 CEO Matt Flake explained in a statement. “There’s a substantial market opportunity for digital lending, and the addition of Cloud Lending’s talented team and next-generation technology solutions will help Q2 expand our footprint in existing markets, as well as enter new ones.”
Cloud Lending provides an end-to-end lending solution built natively on Salesforce.com. The platform enables lenders to conduct origination, underwriting, servicing, collections, and reporting activities. In joining with Q2, Cloud Lending Solutions will be able to leverage the scale, infrastructure, and resources of its larger acquirer.
“This partnership means more lenders will provide greater access to credit for more people and businesses across the globe,” Cloud Lending CEO Snehal Fulzele said. “Cloud Lending’s team members are excited to partner with Q2 and to continue delivering on our proven track record of innovation in digital lending and leasing.”
Cloud Lending demonstrated its CL Exchange offering at FinovateSpring 2015. CL Exchange enables online marketplaces and lenders to exchange business and consumer loan applications in order to build the most appropriate loan portfolios for their businesses. Cloud Lending was founded in 2012, and is based in San Mateo, California. Heading into the acquisition announcement, the company had raised more than $14 million from investors including Cota Capital and SF Capital Group.
Headquartered in Austin, Texas, Q2 is a leading cloud-based digital banking solutions provider. Delivering actionable data insights, and equipped with open development tools, Q2’s platform helps FIs enhance and improve the customer experience, while becoming more efficient and growing faster. Broadway Bank, Inwood National Bank, and First Financial Bank are just a few of the company’s FI clients who have leveraged Q2 technology to grow assets, improve marketing campaigns, and increase the number of online users.
Q2 demonstrated its Biller Direct solution at FinovateSpring 2018. The technology benefits consumers by enabling them to aggregate their bills and pay them with a debit or credit card. At the same time, FIs benefit from the interchange revenue generated from card-based bill pay. Also this spring, Q2 – working with StoneCastle Partners – announced a deal with MoneyLion to help the New York-based fintech launch deposit accounts and debit cards. In February, Q2 inked a multiyear partnership with financial services platform, Acorns, which will leverage the company’s Q2 Open API portfolio – launched last year – to deliver new services to its more than three million customers.
Trading on the New York Stock Exchange under the ticker “QTWO,” Q2 has a market capitalization of $2 billion. The company was founded in 2004.