Velocity Solutions, which provides revenue enhancement solutions to regional and community financial institutions, recently acquired CourtesyCloud’s CourtesyConnect/CourtesyLimit automated overdraft management system. CourtesyCloud is owned by BSG Financial Group.
Velocify is owned by H.I.G. Capital, LLC, a private equity investment firm with over $25 billion of equity capital under management, according to a press release.
CourtesyConnect is the industry’s first cloud-based courtesy overdraft management system, the release states. The software and processes are designed to allow financial institutions of all sizes to automate their overdraft service and manage it as a line of business – for enhanced account holder experience, compliance and revenue. CourtesyLimit is the risk management component of the system. It provides innovative data analysis capabilities to create dynamic overdraft limits tailored to an individual's repayment capacity.
“This acquisition establishes Velocity Solutions as the industry’s unrivaled leader in automated overdraft management solutions using dynamic limits,” Velocity CEO Christopher Leonard said in the release. “The addition of CourtesyConnect/CourtesyLimit to our existing product suite creates the industry’s most powerful overdraft management product set. This acquisition allows us to provide our overdraft solutions to a broader base of financial institutions, including those who are seeking a cloud-based solution. We are better equipped than ever to help financial institutions of all sizes achieve the optimal balance of revenue, service and compliance – the three essential pillars of a complete and proactive overdraft management system.”
CourtesyCloud is the second add-on acquisition that Velocity has completed since H.I.G. acquired the company in December 2017, the release states. Velocity also acquired Akouba in June 2018 as a new strategy to enter the growing digital lending market by enabling financial institutions to offer loans to small and medium-sized businesses.
“We are pleased to support Velocity in its strategic acquisition of CourtesyCloud,” H.I.G. Managing Director Keval Patel said. “In addition to further enhancing our existing overdraft management capabilities, the acquisition enables cross-selling of other Velocity solutions to a new customer base and adds talented individuals to the Velocity team. This acquisition solidifies the company’s position as the industry’s leading overdraft management provider.”
“Velocity Solutions is a seasoned veteran in the overdraft space,” BSG founder and CEO W. Barrett Nichols said. “For years, we’ve coexisted in the industry as peers, with very similar goals of offering compliant and consumer-centric solutions, developing consultative relationships with our clients, and continuous innovation of our software, systems and processes. This acquisition creates the opportunity to provide enhanced overdraft product offerings and unrivaled service to our combined client base, as well as to other prospective financial institution customers.”