Q2 Closes Acquisition of PrecisionLender

Last week, Q2 completed its sixth acquisition since its 2004 launch. The digital banking services company closed the books on a $510 million deal to purchase PrecisionLender, a sales enablement platform.

“We are thrilled with the outstanding talent, culture and industry expertise the PrecisionLender team brings to the Q2 family,” said Q2 CEO Matt Flake. “We are also excited about the potential we have to help our customers improve margins, profitability and the quality of their relationship with their key accounts using our combined data insights and commercial banking solutions.”

Q2 will leverage PrecisionLender to further its corporate banking expertise and solidify its leadership in digital banking. Going forward, PrecisionLender will operate as Precision Lender, a Q2 company.

Q2 debuted Q2 Biller Direct at FinovateSpring 2018 and the company’s CIO Lou Senko made a cameo appearance in ALTR’s demo at FinovateFall earlier this year.

Finovate Alumni News

On the web

  • Zopa Tests Savings Product Before Full Launch.
  • Starling Bank Offers Income Protection Insurance Via Anorak Partnership.
  • Q2 Closes Acquisition of PrecisionLender.

Around the web

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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.

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.

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.

Q2 Announces New Partnership with Acorns

 

Cloud-based digital banking solutions provider Q2 Holdings has entered into a new collaboration with financial services platform, Acorns. Via the multiyear partnership, Acorns will take advantage of the Q2 Open portfolio, a suite of open-API financial services solutions originally unveiled by Q2 last year that give developers the ability to build customer-facing financial products and experiences.

Matt Flake, Q2 CEO, said it was important for both incumbent FIs and newer firms to get access to the right technology in order to build the financial solutions that clients demand. “We believe many fintech companies and traditional FIs share the goal of strengthening their communities, and we’re excited to provide them a common set of technology they can use to deliver on their respective missions,” Flake said.

Among the APIs available via Q2 Open are Q2 Debit, which enables the building of checking account functionality within apps, Q2 Save, which enables building savings account functionality into apps, Q2 Ledger, which adds ledgering functionality for FBO (“for the benefit of”) accounts; and Q2 Biller Direct, which brings bill presentment, aggregation, and billpay functionality to apps. Among the fintechs already using Q2 Open include fellow Finovate alum, Qapital, whose CEO George Friedman said the solution “enable(d) our team of creators, designers, and developers to rapidly deliver new features in our app – allowing us to build a product that our customers really love.”

Founded in 2004, Q2 demonstrated its Q2 CardSwap solution at FinovateFall 2017. CardSwap helps financial service providers earn interchange revenue by enabling account holders to use their bank card for digital subscription services such as Netflix, Amazon, and Uber. The technology can be integrated into existing front-end platforms or companies can leverage their internal engineering talent and the APIs within Q2 Banking’s Open API portfolio to build their own CardSwap front end.

Last year, Q2 was named to the Deloitte Technology Fast 500 for a second year in a row in 2017 and earned a finalist spot in the NAFCU Services 2017 Innovation Awards. Also in 2017, Q2 Holdings added financial services and technology veteran Christine Petersen as Chief Revenue Officer last year and unveiled its new targeting and messaging platform, Q2 Smart. Headquartered in Austin, Texas, Q2 trades on the New York Stock Exchange under the ticker “QTWO.” The company has a market capitalization of $1.8 billion.

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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.