As the market for embedded finance solutions grows, the key players and alliances are shifting. Q2 is dissolving its partnership with StoneCastle, which spawned Cambr — a banking as a service joint venture between the digital banking software firm and the deposit network.
Going forward, Q2, which has its own core banking technology that powers onboarding, deposit processing, debit card, and payment solutions for clients like Acorns and Credit Karma, will operate under the Q2 BaaS brand.
At the end of 2019, Q2 had dozens of fintech clients on its CorePro platform, accounting for more than 5 million end users.
“We see this as a moment where we’re signifying our commitment and belief in the BaaS opportunity. Nothing has fundamentally changed in the way we’re serving customers or the solutions we’re bringing,” said Jonathan Price, Q2’s svp of emerging businesses, corporate and business development. For existing customers, the two firms will continue to work together.
What has changed is that Q2 isn’t locked in to a partnership that saw StoneCastle playing the exclusive role of deposit network in each deal that was inked. “It creates optionality in terms of what makes the most sense to our clients,” he said. Q2 may choose to work together with StoneCastle in the future.
Q2 has hired the lead generation and sales professionals from Cambr and the team started working for its new employer last week.
This content is available exclusively to Tearsheet Outlier members.
Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $59/mo Already an Outlier member? Sign in to your account