Nickels, a Michigan-based Fintech, has raised $4 million in Seed funding in a round led by Flyover Capital and Reseda Group, with participation from Detroit Venture Partners and Michigan Rise, according to a company statement.
Nickels is a firm that provides a white-labeled product to banks designed to help them improve their customer’s credit scores while boosting new revenue streams.
Nickels notes that US consumers are charged over $110 billion a year in interest and fees on their credit cards. This number will most certainly increase as inflation remains stubbornly high, and interest rates are going higher. With an average household credit card debt of almost $9000, Nickels looks to mitigate this problem by improving the financial health of Americans.
Americans are charged more than $110 billion in interest and fees on their credit cards every year, and that number is only expected to grow. Inflation and the rising cost of living have caused consumers to take on more credit card debt than ever (averaging $8,942 per household, according to WalletHub), and rising interest rates are making that debt even costlier. Nickels will leverage this funding to expand its reach and increase its impact on improving Americans’ financial health. Nickels provides a service that centralizes card management for users, saving money and driving new loans.
“We see an opportunity for innovative financial institutions to stand out from their competition by applying technology to support their consumers’ financial health. We’re excited by Nickels’ opportunity to help community banks and credit unions continue to play an important role in people’s financial lives,” said Thad Langford, Managing Partner at Flyover Capital.
Joseph Garcia, Nickels co-founder and CEO said the credit card market is very concentrated with 15 banks controlling 90% of the affiliated debt. Their solution seeks to assist the other 10,000+ credit unions and smaller banks:
“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.”