A new loyalty program specifically designed for credit unions has launched in Canada.
Toronto-born financial technology firm Cyder this week announced $1.5 million in pre-seed funding as the company targets credit unions across the country.
The round of capital hails from the MaRS Investment Accelerator Fund, Desjardins, Aperture Group, and angels such as Dragons’ Den star Arlene Dickinson.
The pre-seed funding will be used to grow and scale Cyder’s loyalty platform, according to a statement from the startup.
The company began in 2021 as a data platform for banks, but pivoted following feedback, says Sukhman Dulay, cofounder and chief executive officer of Cyder.
“When speaking to credit unions, we quickly discovered that there is no loyalty solution for them on the market,” Dulay said. “Most credit unions we spoke to would ask us to develop a loyalty solution for them.”
Market research showed that more than 80% of consumers said they were more likely to stick with a brand that offers a loyalty program. So Dulay’s team developed Cyder Rewards, which allows credit unions to redeem and issue rewards to members, onboard local businesses as loyalty partners, and integrate donation options for local charities and causes.
“True loyalty goes beyond dollars and cents,” posits Carrie Forbes, CEO of League Data, a Halifax-based fintech cooperative owned by over 35 Canadian credit unions. “Credit union loyalty programs make a difference well beyond the individual and the financial institution–they help impact communities, small businesses and people in many ways.”
Cyder’s loyalty program, unveiled at the Credit Union Tech Forum in Quebec City, is designed to “align with credit unions’ altruistic values, aiming to strengthen community ties through local small businesses and social impact,” according to Dulay.
“Credit unions invented loyalty programs through patronage; however, large banks adopted the concept through points programs, gaining massive success,” the CEO noted. “It’s time to take it back. Cyder is helping provide a simple, local, and affordable rewards program that credit unions of all sizes can easily adapt.”
Cyder was founded in Toronto in 2021 by Dulay alongside Will Christodoulou.
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