Michigan Credit Union Invests More in Plinqit

4Front CU is among several existing investors participating in the fintech’s new funding round.

New developments and partnerships for CUs in the fintech world. (Source: Shutterstock)

A northern Michigan credit union has chipped in to raise $5 million in capital for a Michigan fintech that specializes in ways for banks and credit unions to attract and retain consumers.

The Ann Arbor-based Plinqit announced Tuesday that it had raised $5 million in its latest Series A funding round, bringing the total to just under $10 million since its founding.

A news release from Plinqit said the money will “support Plinqit’s continued expansion as demand for its platform capabilities increases.”

4Front Credit Union of Traverse City, Mich. ($896.6 million in assets, 95,314 members) was among several current investors that participated in the round.

Other current investors that participated in the latest round included Invest Detroit, a non-profit lender, investor and partner supporting organizations across Detroit; and Michigan Rise, an investor in Michigan tech startups to help commercialize innovative technologies.

The Nashville-based Fintop Capital and New York, N.Y.-based JAM FINTOP co-led the round.

John Philpott, general partner at Fintop, said the company’s investment is designed to support Plinqit’s mission and drive stronger growth.

“At Fintop, we are committed to investing in the next generation of fintechs that are transforming the way financial institutions and their customers manage and interact with money — and that’s exactly what Plinqit is doing,” Philpott said. “They have a proven product that is creating substantial value for our industry.”

Matt Kelley, director of JAM FINTOP, said Plinqit was a right fit for its investments. “Fintechs like Plinqit are driving positive change throughout our industry and helping to solve the challenges faced in the financial world,” Kelley said.

Plinqit is a product of HTMA Holdings, founded by CEO Kathleen Craig in 2018. She previously led client experience programs for a bank.

“As we continue to grow, we are excited to collaborate with industry leaders like Fintop and JAM FINTOP, and strengthen our existing partnerships with Invest Detroit, Michigan Rise, 4Front Credit Union and others,” Craig said. “It was also fantastic that almost our entire current investor base participated in this round, demonstrating the strong level of support we have.”