Minneapolis-based financial-technology startup ClickSWITCH announced Tuesday that it closed on a $13 million round of financing to fuel growth.
ClickSWITCH will use its fresh round of funding to ramp up hiring within its software development and sales teams and expand executive leadership. The round will also be used to support operations with new financial partners. ClickSWITCH recently began working with T-Mobile to power a portion of the wireless carrier's new banking service.
The Series B round was led by San Francisco-based Commerce Ventures and Point72 Ventures, which is headed by billionaire investor Steve Cohen. ClickSWITCH closed on a $3.5 million Series A round last August and used the capital to add staff.
"There is a battle for banking deposits underway across fin-tech innovators and incumbent financial institutions," Commerce Ventures Partner Dan Rosen said in a statement. "Players across the industry are finding that ClickSWITCH is a critical utility for activating valuable new customers."
Founded in 2014, ClickSWITCH aims to make it easier for consumers to move bank accounts from one financial institution to another. The company sells its services to banks and credit unions, which in turn offer it to customers.
CEO Cale Johnston started ClickSWITCH after serving as a vice president at Cachet Financial Solutions, which is now Chanhassen-based Digiliti Money Inc., which sells mobile-deposit technology. Johnston told the Biz Journal that he discovered credit unions like the technology, but were dogged by a different problem: consumers' reluctance to switch banks.
As of today, ClickSWITCH has about 400 customers and 45 employees. It plans to grow to 60 employees by the end of the year and hire a chief operating officer and chief revenue officer.
