Digital account switching company ClickSWITCH has locked in an investment of $2 million from a subsidiary of USAA. The funding, which takes the company’s total to more than $21 million, will be used to help the Minneapolis, Minnesota-based firm “build additional momentum around the ClickSWITCH solution and its features,” according to founder and CEO Cale Johnston.
ClickSWITCH offers an automated account management solution that enhances the onboarding process for financial institutions by enabling them to quickly and efficiently switch all direct deposits and recurring payments from old accounts to new ones. The solution helps banks and credit unions gain higher account holder acquisition and activation rates, capture more deposits, and increase profitability.
“The financial investment from USAA is encouraging during these uncertain times and we are excited to support USAA’s mission of supporting the U.S. military community,” Johnston added.
USAA Head of Corporate Development Nathan McKinley praised ClickSWITCH for its “commitment to solving a persistent consumer problem” and put the investment in the context of USAA’s goal of providing military families with “the best value in financial services.” Based in San Antonio, Texas, USAA is a leading financial services provider, offering insurance, banking, and investment solutions to nearly 13 million members of the U.S. military, veterans, and their families.
With more than 500 financial institution customers in North America, ClickSWITCH sees this week’s investment as helping drive further innovation on its technology and enabling the six-year old company maintain its status as a leader in the account switching space. This spring, as the COVID-19 crisis took hold in the U.S., ClickSWITCH forged a partnership with fellow Finovate alum Finastra. The company said it would leverage ClickSWITCH for its Fusion Phoenix and Fusion UltraData core clients to help them increase both deposits and customer engagement.