ANN ARBOR – Fintech company Nickels announced it has raised $4 million in seed financing.
The Ann Arbor-based company helps credit unions and banks discover new revenue streams and boost customer credit card health, according to a media release.
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The company plans to use the funding to recruit new team members, accelerate partnerships and build on its 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-plus card market,” founder and CEO of Nickels Joseph Gracia said in a statement. “Our solution helps the other 10,500-plus banks and credit unions support their consumers with whatever credit cards they’re using.
“This improves an important aspect of their consumers’ financial health and creates opportunities for our banking clients to refinance their consumers’ credit card debt, which is a win-win for the bank and their consumers.”
Nickels’ helps individuals build positive habits and overcome credit card debt through its financial wellness solution, delivered to consumers by banks and credit unions.
Institutions use its white-label web application called Credit Card Coach that allows consumers to receive personalized advice once they link in their third-party credit cards. The data from the third-party card is sent to the institution on a regular basis to help identify customers who could benefit from using the institution’s loan products to refinance their third-party credit card debt.
“We see an opportunity for innovative financial institutions to stand out from their competition by applying technology to support their consumers’ financial health,” managing partner at Flyover Capital Thad Langford said in a release. “We’re excited by Nickels’ opportunity to help community banks and credit unions continue to play an important role in people’s financial lives.”