December 5, 2015
Q2 Holdings Inc., an Austin, Texas-based cloud-based virtual banking solutions provider, has acquired Social Money, a financial services software company based in Des Moines, Iowa that created the SmartyPig product, a cloud-based platform that allows community banks and credit unions to offer digital banking. Q2 acquired all of the outstanding interests of Social Money in exchange for $10.6 million in cash payable at closing, subject to a customary working capital adjustment.
Founded in 2008 by Jon Gaskell and Michael Ferrari, Social Money is the firm behind goal-based savings platform SmartyPig in which savers use social media to announce goals and solicit participation from friends and family members. Its client list includes H&R Block and Sallie Mae. The company expanded to India in 2013 and has offices in Chandigarh, India.
Social Money’s technology portfolio and expertise make this a strategic acquisition that will help Q2’s customers expand their reach, grow market share and engage account holders, Matt Flake, President and CEO of Q2, said in the press release. The digital banking experience matters when it comes to reaching millennials and retaining existing account holders. We are committed to providing community financial institutions innovative technology specifically designed for the increasingly digital modern consumer, and I believe the addition of Social Money will help us do just that.
The acquisition of Social Money will provide Q2 with additional expertise in the direct-to-digital arena, a critical area for Q2’s customer base where consumers are increasingly more digital and branchless in their banking habits. Social Money creates new ways for financial institutions to address this consumer base while driving down costs and using the resulting savings to provide competitive product offerings.
The Q2 research and development team is excited to welcome new team members and work with Social Money’s stellar portfolio of technology, said Adam Anderson, CTO of Q2. Today’s acquisition allows us to continue to empower community banks and credit unions to easily establish direct-to-digital capabilities in the future.
Q2 plans to rebrand Social Money and offer its technology to customers next year. Meanwhile, Social Money will continue its relationship with existing clients.
About Q2 Holdings, Inc.:
Q2 Holdings, Inc. (Q2) is a leading provider of secure, cloud-based virtual banking solutions headquartered in Austin, Texas. Q2 enables regional and community financial institutions, or RCFIs, to deliver a robust suite of integrated virtual banking services and engage more effectively with their retail and commercial account holders who expect to bank anytime, anywhere and on any device. Q2 solutions are often the most frequent point of interaction between its RCFI customers and their account holders. As such, Q2 purpose-built its solutions to deliver a compelling, consistent user experience across digital channels and drive the success of its customers by extending their local brands, enabling improved account holder retention and creating incremental sales opportunities. For more information about Q2, please visit.
About Social Money:
Social Money is a financial services technology company creating innovative products that help consumers and its clients save. The company’s products are centered on proprietary technology that enables cost-effective digital deposit enablement and engagement. For more information, visit.