Q2 Acquires Gro Solutions

Digital banking solutions company Q2 Holdings boosted its capabilities this week with the acquisition of account opening technology provider Gro Solutions. This follows Q2’s purchase of Cloud Lending Solutions in August, making it the Austin-based company’s fifth acquisition since it was founded in 2004.Terms of the deal were not disclosed.

“With Q2’s recent acquisitions of Cloud Lending and now Gro—combined with our leading, secure digital banking platform—we are delivering powerful solutions for the financial services vertical to provide exceptional experiences needed to keep pace with the high expectations of today’s account holder,” said Matt Flake, CEO of Q2. “Our acquisition of Gro adds yet another element that helps our customers reduce user friction, increase engagement in the digital channel and expand their offerings.”

Once the acquisition closes, Q2 will benefit from Gro’s omni-channel account opening technology, Gro Checkout, which CEO David Eads launched at FinovateFall 2015. Q2 will also boost its portfolio with Gro’s other solutions, including Gro Funnel, a set of marketing automation and CRM tools; Gro Business, tools for business clients; and Carrier Data Integration, technology that leverages information from a customer’s wireless billing record to auto populate data fields.

“As a combined force, we look forward to providing leading account opening, ecommerce and end-to-end digital financial solutions to banks, credit unions and other financial technology companies,” said Eads. “We are delighted to be joining the Q2 team and look forward to delivering best-in-class in financial digital sales and marketing solutions.”

Gro Solutions most recently demoed an extension of its digital sales platform at FinovateFall 2017. The company had raised $4.3 million since it was founded in 2015. Gro has been named a Fintech Company to Watch by American Banker and was recently awarded the TAG Fintech Advance Award.

Q2 debuted Q2 Biller Direct at FinovateSpring earlier this year. The company had 2017 revenues of $194 million, has 10.4 million end users, and 382 bank and credit union customers. Matt Flake is CEO.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Q2 To Acquire Cloud Lending Solutions

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.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinovateSpring Sneak Peek: Q2

A look at the companies demoing live at FinovateSpring on May 8 through 11, 2018 in Santa Clara, California. Register today and save your spot.

Q2 Biller Direct is a new billpay solution that enables card payments to dramatically improve the user experience and economic model of billpay.

Features

  • Card payments generate interchange revenue for every bill paid
  • Modern user experience features bill aggregation and push notifications
  • API allows ultimate flexibility for development and integration

Why it’s great
Biller Direct uses card payments to turn billpay from a cost center to a revenue generator.

Presenter

Rahm McDaniel, VP of Strategic Solutions
McDaniel is an entrepreneurial sales and marketing executive with 19 years of experience leading complex, cross-functional initiatives. He currently serves as Q2 Open’s VP of Strategic Solutions.
LinkedIn

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinovateFall Sneak Peek: Q2 Holdings

A look at the companies demoing live at FinovateFall on September 11 through 14 in New York. Pick up your tickets today and save your spot.

Q2 Holdings’ product, Q2 CardSwap, makes it easy for users to put your card top-of-wallet for digital and subscription payments like Netflix, Amazon, and Uber—helping you generate valuable interchange revenue.

Features

  • Supports 20+ popular services including Netflix, Amazon, Uber, and more.
  • Can be implemented as a turnkey product or consumed via APIs.
  • PCI compliant and undergoes routine testing and maintenance.

Why it’s a must-see
Q2 CardSwap is designed to generate interchange revenue from new card-focused billers who aren’t often captured in traditional bill pay.


Presenter

Jordan Wright, Director of Business Development, Q2 Open
Jordan is the cofounder and former CEO of Unbill, acquired by Q2 in January. He is passionate about building breakthrough businesses, and a proven leader in product strategy and entrepreneurship.
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