ANN ARBOR, Mich., October 12, 2022 /PRNewswire/ — Nickels, a financial technology company that helps banks and credit unions improve their consumers’ credit card status and unlock new revenue streams, announced the closing of $4.0 million in seed financing. This funding will be used to expand the company’s product capabilities, hire top talent, and accelerate Nickels’ partnerships with banks and credit unions. The round was led by Flyover Capital and Reseda Group, with participation from Detroit Venture Partners and Michigan Rise.
Americans are charged more than $110 billion in interest and fees on their credit cards each year, and that number is expected to grow. Inflation and rising costs of living have caused consumers to take on more credit card debt than ever before (average $8,942 per household, according to WalletHub), and rising interest rates are making debt even more expensive. Nickels will leverage this funding to expand its reach and increase its impact in improving the financial health of Americans.
In the age of digital banking, more consumers expect their financial institutions to support their financial health, but feel few meet those expectations. “We see an opportunity for innovative financial institutions to stand out from the competition by applying technology to support the financial health of their consumers. We are excited about the opportunity for Nickels to help community banks and credit unions continue to perform an important role in people’s financial health. lives,” he said. Thad Langfordmanaging partner of Flyover Capital.
“We strive to help people achieve their financial goals by supporting promising fintech companies in the financial wellness space through investments and strategic partnerships. Nickels’ mission aligns closely with our goals in Reseda, and we are very excited about their initiative to help credit unions support the health of their members’ credit cards,” said ben maximumCTO at Reseda Group.
“The US credit card market is incredibly consolidated with just 15 major banks controlling over 90% of the $850+ billion card market. Our solution helps the other 10,500+ banks and credit unions support their consumers with whatever credit card they’re using. 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 beneficial for the bank and its consumers,” said founder and CEO Joseph Grace.
Nickels’ financial wellness solution empowers banks and credit unions to help their consumers overcome credit card debt and build positive habits. It starts with an analysis of anonymous checking account data to identify refinancing opportunities within institutions’ existing consumer base, along with a suite of marketing tools that help them connect with those consumers to refinance their third-party debt. Institutions then implement Credit Card Coach, a white-label web application where consumers link their third-party credit cards to receive personalized advice on managing payments, controlling spending, and improving credit scores. This third-party card data is fed back to the institution to continually identify consumers who would benefit from refinancing their third-party credit card debt into the institution’s own loan products.
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