Ann Arbor fintech raises $4 million in seed funding
ANN ARBOR – Fintech company Nickels announced that it had raised $4 million in seed funding.
The Ann Arbor-based company helps credit unions and banks uncover new revenue streams and improve customer credit card health, according to a news release.
The company plans to use the funding to recruit new team members, accelerate partnerships and build product capabilities. Flyover Capital and Reseda Group led the round, with participation from Michigan Rise and Detroit Venture Partners.
“The U.S. credit card market is incredibly consolidated with just 15 major banks controlling over 90% of the $850+ billion card market,” Nickels founder and CEO Joseph Gracia said in a statement. “Our solution helps over 10,500 other banks and credit unions support their consumers with all the credit cards they use.
“This improves an important aspect of their consumers’ financial health and creates opportunities for our banking customers to refinance their consumers’ credit card debt, which is a win-win situation for the bank and its consumers.”
Nickels’ helps individuals build positive habits and overcome credit card debt with its financial wellness solution, offered to consumers by banks and credit unions.
Institutions use its white-label web application called Credit Card Coach which allows consumers to receive personalized advice once they have linked their third-party credit cards. Third-party card data is sent to the institution on a regular basis to help identify customers who could benefit from using the institution’s lending products to refinance their third-party credit card debt.
“We see an opportunity for innovative financial institutions to differentiate themselves from their competitors by applying technology to support the financial health of their consumers,” Flyover Capital managing partner Thad Langford said in a statement. “We are excited about the opportunity for Nickels to help community banks and credit unions continue to play an important role in people’s financial lives. »
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