Happy Friday!!!
 
Fintech, Banking, Data – it’s in our DNA.  Don’t forget to sign up here to have the Uncle Sean Update delivered straight to your inbox each week.  Here is the Uncle Sean Update for 5/20/22:
 

• Tons of great things happening in Bankers Helping Bankers this week; and I am very excited to give some virtual high fives to these great firms (with tremendous employees):
  • Unifimoney, a turn-key multi-asset digital wealth management platform for community banks and credit unions, shows their dedication to community banking by partnering with the Banking Helping Bankers platform.  Special thank you to Ben Soppitt and the entire Unifimoney Team for supporting BHB!!!
  • Travillian, a nationally focused executive search, strategy and talent advisory boutique dedicated to the financial services industry, becomes the latest to join the BHB BaaS Association as the go-to talent advisory partner with the Association.  High five to Brian Love, Keith Daly and the Travillian Team!!!

 

• Congratulations to Agility Bank as the nation’s latest de novo digital bank!!!!  Agility Bank announced that they have received all approvals to open as an OCC Minority Depository Institution (MDI) charter.  Agility Bank opens on Monday, May 23rd – GREAT job to Lauren Sparks (100% legit Rock Star) and the entire Agility Bank Team!

 

• Curt Queyrouze joins Coastal Community Bank as President.  Coastal Community Bank is a leading sponsor bank in the U.S. through Coastal’s CCBX BaaS / FinTech division.
  • Uncle Sean is very excited to see what Eric Sprink and Curt Queyrouze accomplish together!!!

 

• Ponce Bank (NASDAQ: PDLB) disclosed a $6.3M write-off and $1.7M in additional reserves in their 1Q2022 Earnings Announcement “relating to the Bank’s lending relationship with Grain Technologies, Inc. (‘Grain’)” fintech sponsorship…..  OUCH!!!!  😲
  • In a May 5th 8-K filing, Ponce stated that Grain "has been victimized by cyber fraud using synthetic and other forms of fraudulent identifications, a phenomenon that has become prevalent with FinTechs."  The filing also states that “Grain originates and services these microloans and is responsible for maintaining compliance with the Bank's origination and servicing standards, as well as applicable regulatory and legal requirements.”
    • Also disclosed in the 8-K is a pending lawsuit where Grain has sued a third party vendor for the fraudulent loan originations due to “synthetic identifications that Grain’s vendor failed to identify.”  Oops!!!
  • In total, 24,719 microloans amounting to $17M have been deemed to be fraudulent.  $11.8M remain outstanding as of March 31, but Ponce write off roughly $6.3M and provided additional reserves of $1.7M after applying a $1.6 million security deposit set-off, leaving a net balance of $2.2 million at March 31.  Ponce also maintains a $1M equity investment in Grain.
  • As stated in the 8-K, Grain intends to make Ponce whole upon completion of a Series A (yeah – just what a VC wants to hear), but Ponce also acknowledges that Grain “remains a pre-profit startup” and that further capital raises “may not materialize.”

 

• Transamerica launches Workplace Emergency Savings Accounts (ESA) for employers as an employee benefit.  It’s a savings DDA that can be funded via paycheck deductions as well as employer contributions via Millennium Trust Company and / or SecureSave (custodial savings account held at Wells Fargo).

 

• Greenlight (teen and family banking app) is launching their Family Cash Card a Mastercard credit card issued by First National Bank of Omaha (FNBO).  A little more digging shows us that the Greenlight Family Cash Card was a product of Marqeta’s modern credit card platform in partnership with FNBO – very cool!
  • Rewards on the Family Cash Card credit card range from 1% - 3% based on spend and can be returned in cash or auto-invested in a range of stocks and/or ETF’s in the app (Greenlight is partnered with DriveWealth on the RIA / SIPC side).

 

• Speaking of….  Marqeta (Nasdaq: MQ) announced this week the addition of Evolve Bank & Trust as Bank Partner to expand Marqeta’s program management capabilities.  As one of the premier sponsor banks and BaaS provider in the U.S., Evolve Bank & Trust will “support the full range of Marqeta’s program management capabilities, including BIN management, on-demand fulfillment, compliance reporting, and settlement services.”
  • However, if you were looking closely, you saw this mentioned last week as part of Marqeta’s 1Q2022 earnings announcement showing strong continued growth and impressive 2Q2022 guidance.

 

• Plaid had a busy week announcing the launch of Data Connectivity solutions (Core Exchange and Plaid Exchange) as well as Identity Verification (IDV) KYC and Monitor for AML and PEP.  Plaid Identity Verification and Plaid Monitor combined allows for a full-stack customer onboarding experience.
  • TechCrunch has a good summary here focusing on Plaid’s move towards identity and income verification, fraud prevention, and account funding – with specific reference to their recent $250M acquisition of Cognito.

 

• FTX (crypto exchange) has been busy as well lately.  FTX US announced an expansion beyond crypto to allow customers trade and invest in hundreds of US stocks and ETF’s by launching FTX Stocks - a free, no-fee, no payment for order flow (PFOF) platform.  Just last week, FTX US applied for New York State trust charter; and don’t forget about FTX CEO, Sam Bankman-Fried, recently acquired 7.6% of Robinhood outstanding shares which certainly raised a lot of eyebrows.
  • By the way, have you seen the FTX US Debit Card (Visa debit card issued by Evolve Bank & Trust)?

 

• The Federal Reserve finalized a rule that will allow banks to delay FedNow instant payments to prevent fraud. 
  • As Tanner Mayo consistently points out, real-time settlements introduce real-time fraud risks.  Let’s hope that over time, the FedNow service enhances fraud prevention tools.

 

• CNBC announced their 10th annual Disrupter 50 list with many familiar names.

 

• Notable FinTech funding for the week:
  • Unit (fintech BaaS) raised $100M in Series C funding round at a $1.2B valuation.  “Unit has seen its transaction volume grow by 7x over the last six months. The startup has crossed an annualized transaction volume of $2.6 billion, issued over 430,000 cards to over 330,000 customers and saw a 10x increase in deposit volumes.”
  • Thought Machine (core banking technology) $160M in Series D round at a $2.7B valuation less than six months after their $200M Series C at a $1B+ valuation.
  • GravyStack (Teen banking and financial literacy app) raised $5.2M in Seed funding.
  • CertifID (wire fraud prevention and recovery) raised $12.5M in Series A funding round.  This company is exciting to me as they target law firms and title companies to protect them from wire fraud during mortgage payoffs, CRE transactions; as well as a fraud recovery service.  Check them out at certifid.com.
  • Keep Financial (employee retention platform) emerged from stealth and announced $9M Seed Round to accelerate their vesting cash plan as an employer retention benefit.  Think of this as 0% employee loans that are forgiven over a period of time / vesting schedule – thus the retention benefit.
  • SpotOn (POS software and payments solution for restaurants, retail, and enterprise venues) raised $300M in Series F funding round at a $3.6B valuation just 8 months after their Series E.
  • Velocity Global (global employment solution to simplify how companies onboard, pay, and manage talent) raised a whopping $400M in Series B increasing their valuation 7x over last year.

 
 
Random Uncle Sean Stuff:

• Now we have Monkeypox…???  Seriously, can we not catch a break???  Somehow, my mind immediately references The Wizard of Oz and those creepy flying monkeys…  😲  Ahhh yes, the classic movie musical that has been traumatizing children for over 80 years – LOL!!!!
• Okay – time for some Dad Jokes to kick off the weekend!!!!
  • If anyone knows Phillip, tell him I have a bunch of his screwdrivers.
  • While at the Optometrist, the doctor came in and said my results were ready.  I asked, “can I see them?”  He replied, “probably not.”  😃
  • Turns out that a monkey cannot in fact do my job.  Long story short, he got us both fired!!!
  • After receiving my blood work results, I texted Aunt Patty and told her “I’m at risk for diabetes type 1”….  And she texted back “1”…..  Touché Aunt Patty!!!  😊
  • The fear of giants is called feefiphobia.

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
 

Happy Friday!!!
 
Oooh – It’s Friday the 13th!!!!  Watch out for black cats, broken mirrors, and don’t walk underneath any ladders – we’ve had enough bad luck this week called the Dow, Nasdaq, Crypto, and S&P!  Here is the Uncle Sean Update for 5/13/22:
 

• Things in the crypto world got really interesting this week….
  • We saw an unprecedented meltdown of Terra’s UST/Luna this week.  There is a lot more to this and I won’t even pretend to cover all of it (CNET also has a good summary), but here are the basics:
    • The TerraUSD Stablecoin UST (an algorithmic stablecoin NOT to be confused with Tether USDT) as a “stablecoin”, should be pegged to the U.S. Dollar on a 1:1 basis, but fell to a low of $0.12 Friday morning - akin to a bank run (yeah – I said it), liquidity became the primary concern in a hurry.  The related LUNA cryptocurrency also fell from $80 to $0 (yes, zero) during the week.  This sent shockwaves through the rest of the crypto markets (systemic risk, anyone???), but other leading stablecoins such as Tether USDT, recovered quickly.
  • Coinbase had a rough week citing 1Q2022 results showing declining users, declining trading volume, huge decrease in trading revenues, and a big quarterly loss of $430M.  But that’s not the story.  Embedded in their regulatory filing is a reminder that if a bankruptcy were to occur, customers could lose all of their holdings (see paragraph 1 on page 83 of the Coinbase 10Q).  Ugh – I know it’s a new SEC disclosure requirement (ref SAB 121), but tough timing for that kind of messaging on the heels of a rough Q1 earnings report while the stock is down 70% YTD; and experiencing major outages as crypto prices plunge (along with the rest of the markets to be completely fair). 
    • But YES, this is what happens when the company is not FDIC or SIPC insured, your entire investment including principal is at risk and individuals may likely become unsecured creditors in a bankruptcy case.  No real immediate concerns of BK for Coinbase specifically, but it shines more light onto the fact that this industry needs regulatory involvement for ordinary investor protections – sooner rather than later.
  • No coincidence, Treasury Secretary Janet Yellen told congress to act quickly to pass legislation to regulate stablecoins referencing Terra UST and Tether USDT as a warning.  Yellen stated, “They present the same kind of risks that we have known for centuries in connection with bank runs.”

 

• Solo Funds gets cease-and-desist order from Connecticut Department of Banking stating that all of the loans made to Connecticut residents from June 2018 – August 2021 contained a “tip” bumping the effective APR for the micro-loans from 43% - 4,280%.

 

• Qoins (PFM app to pay down consumer debt) partners with Bond infrastructure platform to launch the Qoins Debit Card (a Visa Prepaid GPR issued by Evolve Bank & Trust) in less than four weeks.

 

• Visa curates pool of BNPL Partners for issuers.

 

• ConnectOne Bank announced a partnership with Nymbus to launch “niche-based vertical” digital banking solution (i.e. direct digital bank) by year-end 2022.

 

• And another Credit Union buying a bank…  DFCU Financial (Charter 61844; $6.4B Total Assets) is acquiring First Citrus Bank (FDIC 34899; $689M Total Assets), BHC is First Citrus Bancorporation, Inc. (FR 3547841).
  • For those keeping score, this is the 7th CU acquisition of a bank YTD for 2022 compared to 13 in 2021, 7 in 2020, and 16 in 2019 (source: FedFis).

 

• FIS announces embedded finance offering developed in partnership with Treasury Prime making it easier for small and mid-sized financial institutions on FIS core to become sponsor banks by via FIS API.

 

• Visa’s global head of fintech and crypto, Terry Angelos is leaving to become the new CEO of DriveWealth the brokerage infrastructure firm powering investing apps such as Unifimoney, Cash App, Douugh, and others.

 

• NYDIG announces partnership with Jack Henry to allow Jack Henry Banno FI’s to provide bitcoin services (buy-hold-sell) for consumer and business accounts.

 

• Hanover Bancorp had their IPO this week at $21 per share raising approximately $27M under the Nasdaq symbol HNVR. 

 

• Instacart announced they have confidentially filed a S-1 draft registration statement with the SEC for a potential IPO.

 

• Notable FinTech funding for the week:
  • Deserve (credit card platform ) secures a new $250M credit facility after experiencing 650% growth in transaction volume and 800% growth in receivables in 2021.
  • Chainalysis (blockchain analysis and tracking firm) raised $170M in Series F funding round at a $8.6B valuation.
  • Talos (crypto trading platform) raised $105M in Series B round at a 1.25B valuation.
  • Cushion (credit card and bank fee negotiation company) raised $12M in Series A funding readying for their bill pay solution for 100,000 current customers plus an additional six-figure waitlist. 
  • Ness (health-based credit card rewards app) raised $15.5M in Seed funding. 
  • Altro (credit builder based on existing subscription payments) raised $18M in Series A funding round.
  • TIFIN (AI wealth mgmt) raised $109M in Series D at a $842M valuation.

 
 
Random Uncle Sean Stuff:

• You HAVE to see this – In Dolni Morava, Czech Republic, the world’s longest pedestrian suspension bridge is now open.  WOW – not even going to lie, those pics made me dizzy and gave me butterflies!!!!  I can hear Aunt Patty now saying, “oh hell no!!!”  LOL!!!  😲
• I am at that age now when I have to select my year of birth online, it’s like a big spin on the Price is Right wheel waiting, waiting, and waiting for my number to come up…
• Gonna have to start taking Dramamine to deal with these stock market swings.  WHEW, what a crazy week.
• Deep thought from Uncle Sean…  Always remember that you are unique….  Just like everyone else!  😊

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
 

​Happy Friday!!!
 
Wishing an extra special Happy Mother’s Day to all the Mom’s out there – hope you all have a wonderful day!  Don’t forget to sign up here to have the Uncle Sean Update delivered straight to your inbox each week.  Here is the Uncle Sean Update for 5/6/22:
 

• Check it out!!!!  The newly announced BHB BaaS Association is now open for membership registration for Member (BaaS banks) as well as Affiliate Member (non-BaaS banks, fintechs, and vendors).  For more info, head on over to BHB BaaS Association homepage.  

 

• Speaking of Bankers Helping Bankers, HUGE shout out to Sarah Fankhauser and Data Center Inc. (DCI) for sponsoring the Bankers Helping Bankers platform and supporting community banking across the U.S. – this is how we win in community banking!!!

 

• It’s Fed Week!!!!  Not since the beginning of the pandemic has there been this much anticipation to an FOMC meeting.  Although, I must confess – I’m not sure why….  Chairman Powell has been incredibly transparent (as always) scripting out that a 50 bps hike was probably in order; as well as general consensus surrounding a $95B reduction ($60B in Treasury Securities and $35B in Agency MBS) in the Fed Balance Sheet – i.e. quantitative tightening (QT) per the March FOMC minutes and in many interviews thereafter.  Well guess what, that’s exactly what they did with a three month phase-in of the quantitative tightening.  I know – shocking, right???
  • If you like to get your “Inner Fed freak on” (like me 😊), you can check out the FOMC Statement, the plan for reducing the Fed Balance Sheet (QT), Chairman Powell’s Opening Statement transcript (24 pages), and the Press Conference Video (47 minutes).  Key takeaways include:
    • 50 bps raise in rates plus Initial quantitative tightening (QT) of $30B in Treasury Securities plus $17.5B in Agency MBS beginning June 1; and doubling to $60B in Treasury Securities and $35B in Agency MBS after three months.
    • Russia’s invasion of Ukraine and Covid lockdown in China will continue to pressure energy prices and supply chain constraints respectively.
    • 50 bps increases will be on the table going forward at the next couple of FOMC meetings, assuming economic conditions come in as expected.

 

• Truist (FDIC 9846, Total Assets $530B) acquired Long Game, a pioneer in the mobile savings gamification app space.  Pricing was not disclosed, but Truist did mention that Long Game was complimentary to Truist Momentum, a workplace financial wellness program.

 

• Intercontinental Exchange, Inc. (NYSE: ICE) announced an agreement to acquire Black Knight, Inc. (NYSE: BKI) for $13.1B in a mixed deal of cash and stock.  This is big news in the world of financial institutions and mortgage servicing as Black Knight is arguably the largest Mortgage Servicing Platform (MSP) in the nation.  During a conversation with our own Bobby Button, he reminded me that Ellie Mae was also acquired by ICE back in 2020; and noted that this is a HUGE roll up of both Ellie Mae and Black Knight under ICE.
  • Of course Uncle Sean would not miss an opportunity to dig into the ICE / BKI Investor Presentation by ICE showing +4B TAM expansion, accretive to adjusted EPS in year 1, and synergies of $325M per year – very cool!

 

• First Internet Bank (FDIC 34607; Nasdaq: INBK) announced that First Century Bank, N.A. (FDIC 57123 and FinTech Sponsor Bank) has terminated the merger agreement between the two companies quoting an inability to “arrive at a mutually agreeable increased purchase price in exchange for an extension” by the previously agreed upon consummation date of April 30 despite having received approval from the Federal Reserve on April 29.

 

• We originally covered this lawsuit late last year – now H&R Block wins preliminary injunction against Jack Dorsey's Block.  Judge Nanette K. Laughrey ordered Block Inc., which rebranded from Square last December, not use its new name in connection with its Cash App Taxes services and that app’s green square logo.  Additionally, Block Inc. can’t communicate through advertising, press releases or social media that it is connected to the service, the judge said.

 

• The SEC doubles down….  The SEC announced this week the allocation of 20 additional positions to their Crypto Assets and Cyber Unit bringing the total to 50 dedicated positions focused on investigating securities law violations related to:
  • Crypto asset offerings, crypto asset exchanges, crypto asset lending and staking products, decentralized finance ("DeFi") platforms, non-fungible tokens ("NFTs"), and stablecoins.  Also including additional emphasis on adequate cybersecurity controls and required disclose of cyber-related risks and incidents.

 

• Affirm (BNPL provider, Nasdaq: AFRM) partners with Fiserv to allow Fiserv business customers using the Carat operating system to easily integrate a BNPL option at checkout later this year.

 

• Stripe launches Financial Connections allowing Stripe’s customers a way to connect directly to their customer’s bank accounts utilizing MX and Finicity; and immediately drew the ire of Zach Perret, CEO of Plaid, the market leader in consumer bank account connectivity and former partner to Stripe.  Zach Perret originally tweeted: “Wow! Jay, you took interviews with Plaid & asked probing questions multiple times over the past few years, and your team sent repeated RFP’s (under NDA!) to us asking for tons of detailed data. I wish y’all the best with these products, but surprising to see the methods.”  😲
  • The original tweet by Zach Perret was deleted and replaced with “Deleted tweet. Misunderstanding or different styles perhaps. Presuming positive intent.”  And subsequently tweeted “Next take: Welcome to the fintech party, @stripe”
  • Ahhh… The joys of Twitter….  LOL!

 

• The Independent Community Bankers of America (ICBA) released their legislative and regulatory policy objectives for 2022.

 

• Notable FinTech funding for the week:
  • Point (home equity investment platform) raised $115M in Series C funding round.
  • Concerto (a new and holistic approach to risk for credit card brands) raised $21.2M in Capital to expand co-branded credit card platforms to more brands.
  • Argent (non-custodial Ethereum mobile crypto wallet) raised $40M in Series B to make digital wallets easier to use and more secure.
  • Traceable AI (cybersecurity platform to protect API’s) raised $60M in Series B funding round at a $450M valuation.
  • Line (alt-lending subscription platform for underserved consumer short-term credit availability) raised $25M in Equity and Debt financing with 600,000 people registering since last summer for the interest free, no credit check platform.
  • Possible Finance (alt-lending installment platform) raised $20M in Equity financing with plans to launch the Possible Credit Card - a small dollar limit unsecured CC with no interest and no late fees issued by Coastal Community Bank.  Possible focuses on underserved consumers and “has provided over 1.65 million small-dollar loans to over half a million customers since 2019.”
  • Lev (digital CRE lending platform) raised $170M in Capital consisting of $70M in Series B and $100M in debt financing.  Valuation was not disclosed but the company has closed nearly $1B in CRE mortgages in 2021 and grown 10x year-over-year.
  • Walnut (healthcare POS installment lender) raised $110M in Capital comprised of $10M in Series A and $100M debt financing.

 
 
Random Uncle Sean Stuff:

• HAPPY MOTHER’S DAY – it’s actually Mother’s Weekend according to Aunt Patty (and is very close to evolving into Mother’s WeeK), and Uncle Sean agrees!!!! 😊 

• Happy Cinco De Mayo!!!  Here’s some history on Cinco de Mayo – note that it is NOT Mexican Independence Day; and has grown as a huge celebration of Hispanic heritage particularly here in Texas.  Plus it gives Uncle Sean a great excuse to drink some margarita’s!!!
• I can’t even call these Dad Jokes this week because these are mostly true for me, so enjoy:
  • Am I the only one who gets borderline delusional when they rearrange the grocery store?  It’s like my entire world gets turned upside down and I don’t even know who I am anymore – LOL!!!!
  • I’ve been practicing resistance training by refusing to go to the gym.
  • I was watching this TV show about explosives and motorcycle jumps and they said, “don’t try this at home.”  So I’m going over to my brother’s house – this is gonna’ be great!!!! 😝
  • Aunt Patty always asks me why I get out of bed so early and I told her, the world simply can’t revolve around me until I get up!
  • Hard boiled eggs are just miniature whole boneless skinless chickens….  I know, that got a little bit weird…
  • Do you think Tesla owners are concerned that if they tweet something negative about Elon Musk, their car “magically” will not start???

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
 

​Happy Friday!!!
 
Welcome to the last business day of April which means we are already 1/3rd of the way through 2nd quarter – Holy Cow!  Here is the Uncle Sean Update for 4/29/22:
 

• More great things coming out of Bankers Helping Bankers (BHB) platform and the newly created BHB BaaS Association.  Off to a screaming start (to the moon) as two of the leading Sponsor Banks in the nation join as founding, charter members just this week alone – stay tuned for more!
  • Sutton Bank joins BHB BaaS Association
  • Evolve Bank & Trust joins BHB BaaS Association

 

• Fiserv announces the launch of AppMarket allowing an open platform for banks on Fiserv core (DNA, Cleartouch, Precision, Signature, and Premier) to easily offer and integrate FI FinTech solutions “to address emerging opportunities in crypto finance, gig economy banking, small and mid-size business (SMB) lending and other priorities.”
  • Warning – some Uncle Sean op-ed here:  To my Banking friends - this is what we have been asking for.  An easy open platform to integrate third party FI FinTech solutions to your core.  It is not quite the Holy Grail solution as it is only core specific (not online or mobile), but it is exciting and is a GREAT start!!!!  Go into the Fiserv AppMarket Platform and play around to see what is being offered – it’s really cool!!!!
    • Recall just a few months ago when Jack Henry announced their open marketplace featuring 850+ fintech integrations through Banno.  The difference being the JHKY solution is mobile / online only whereas the FISV solution is core specific (but no mobile).  Again not the end–all solution, but a GREAT start!!!
    • Looking back, it feels like the O.G. to open marketplace was Finastra’s Fusion Fabric (via legacy Malauzai mobile).  Then came Q2 Innovation Studio and Partner Marketplace.  Now the major core processors are providing open solutions.  Exciting times as we begin to bring BaaS back to the bank!!!

 

• The Federal Reserve Bank of St. Louis released their 2021 Annual Report.  Do yourself a favor and read the Main Essay titled The Blockchain Revolution: Decoding Digital Currencies.  It is a bit of a longer essay, but it is easy to read and highly informative if you are looking for a refresher on crypto, defi, blockchain, smart contracts, tokenization, stablecoins, and CBDC.  Uncle Sean highly recommends it!!!! 

 

• Another CU acquisition of a bank – CoVantage Credit Union in WI (Charter #66848, $2.5B Total Assets) announced an agreement to acquire LincolnWay Community Bank in IL (Cert #57971, $277M Total Assets).
  • If you are keeping score, this is the 6th CU acquisition of a bank YTD for 2022 compared to 13 in 2021, 7 in 2020, and 16 in 2019 (source: FedFis)

 

• A pilot program for instant cross-border (IXB) payments is being launched by EBA CLEARING, SWIFT and The Clearing House (TCH) and is anticipated to launch before the end of 2022.  Initial proof of concept was completed last October.
  • It will be interesting to see how this impacts competition as fintech companies have really been active in this  cross-border payments space (i.e. Wise, Remitly, Sable, TransferMex, and many others).

 

• BetaBank (in organization) submits FDIC application for a de novo digital bank focused on SMB lending.

 

• KeyBank joins the ranks of recent financial institutions to restructure Overdraft Fees and eliminate NSF.

 

• Hmmm…  At Jack Dorsey’s request, Block (fka Square) filed an 8-K with the SEC to officially change Jack Dorsey's title from Chief Executive Officer to “Block Head” effective immediately.  Not ironic at all to me that this was filed on 4/20……  Okay then!  LOL!!!  😃
  • However, per this article in Fortune, Jack Dorsey owns 18,042,428 Twitter shares – giving him a $978M payday at $54.20 per share acquisition price by Elon Musk (a $270M premium over the closing price on April 1).  Touché Sir Block Head!!!

 

• Bond (embedded finance / BaaS infrastructure) and Evolve Bank & Trust (fintech sponsor bank) have partnered together to offer BaaS solutions.  Uncle Sean can’t help but wonder what this means to Synapse who has been a leading infrastructure partner with Evolve for years…???  😲

 

• Fidelity becomes the first major retirement plan provider to allow bitcoin as a 401(k) investment option for workers subject to their employers adoption and 20% allocation limits.
  • This comes fresh off of last month’s DOJ warning to fiduciaries focused on 401(k) plan investments in crypto to “exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan’s investment menu for plan participants.”

 

• Bolt (online checkout provider) finds themselves in a rather precarious position as they are being sued by their most prominent customer (ABG) citing a failure to honor a commitment to provide a checkout product with the ability to “seamlessly integrate” into its partners’ websites.  This looks really UGLY!!!

 

• And of course it wouldn’t be a full week if we didn’t have more CFPB saber rattling.  Now the CFPB is invoking some old Dodd-Frank legislation to examine nonbank financial companies (i.e. FinTech) that pose risk to consumers - namely mortgage, private student loans, payday lenders, debt collection, international remittance, and auto loan servicing.

 

• Notable FinTech funding for the week:
  • Cogni (digital banking app) raised $23M in Series A funding with expansion plans into crypto including a multichain wallet, crypto trading, high-yield savings account, and early access to limited edition NFTs.
  • MetaLend (lending protocol for NFT’s) raised $5M in Seed funding.
  • Ellis (U.S. neobank for immigrant students) raised $5.6M $5.6M in Seed funding.
  • Kard (rewards-as-a-service API for card issuers) raised $23M in Series A funding.
  • Copper (teen banking app) raised $29M in Series A funding round and is expanding the app to allow customers to gain the ability “to direct funds from their FDIC-backed accounts into a wide range of investments, from individual stocks to mutual funds to cryptocurrency.”  Thus creating a parental supervised environment where teens can learn as they spend, save, and invest.
  • ModusBox (payment integration infrastructure platform) raised $7.5M in Series A funding round.

 
 
Random Uncle Sean Stuff:

• DON’T FORGET – Mother’s Day is next weekend, May 8th!!!!!  You’re welcome - LOL!!!!
• Yep, you know Uncle Sean has some Dad Jokes for you:
  • Which letter is silent in the word “scent?”  Is it the S or the C???
  • Do twins ever wonder which one of them was unplanned?
  • Maybe Oxygen is slowly killing you and it just takes 75-85 years to fully work…
  • Why is the letter W called double U and not double V?
  • The word “swims” upside down and backwards is still swims (wait - there’s that double U)!!!

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
 
 

Happy Friday!!!
 
Happy Earth Day!!!  Here is the Uncle Sean Update for 4/22/22:
 

• For the headline spot this week, Uncle Sean gives you the punchline first – this is what a De Facto OCC FINTECH CHARTER looks like…  Now that I have your attention - Column, N.A. (FDIC #58224) effectively emerged from stealth this week as the new “developer infrastructure bank.  The only nationally chartered bank built to enable developers and builders to create new financial products.”  Basically a fintech bank - WOW!!!!  How did we get here?  Well, I’m glad you asked… 😊
  • Uncle Sean and the FedFis Team recently came across Column, NA as we were updating our 1Q2022 FinTech Analytics© Report (nice plug, right) when we saw that the Point Debit Card had changed sponsor issuers from LendingClub Bank (fka Radius) to Column, NA.  Needless to say I was excited to see a new sponsor bank emerge – but there is even more to the story:
    • Last year (3/8/21), investors acquired Northern California National Bank for about $50M (a smaller $330M nationally chartered bank).
    • What was not disclosed (until recently) was that the "investors" were William Hockey (former President, CTO, and co-founder of Plaid) and his wife, Annie Hockey.
      • The “change in control” merger was completed on 7/14/21 and FFIEC shows that Northern California National Bank changed their name to Column NA on 8/16/21.
      • From a brand perspective is where things separate.  
        • Northern California National Bank (“powered by Column N.A.”) retains their website and brand as the traditional bank operations.  The separate Column website is where the new fintech BaaS layer resides and lists Plaid (among others) as their customers.  If you spend 2 seconds on the Column website, there is no doubt this is a fintech infrastructure bank.  Hell, even the website structure and font look eerily similar between Plaid and Column.  It’s pretty cool; and you can check out their blog  "Announcing Column" which is really cool too!
        • While the bank operations still utilize FIS-BancPac (source: FedFis) for core processing, Column (on the fintech side) has “built its own core purposefully to expose primitives like ACH directly to developers.”
    • Even better, this is not the first example.  Brian Barnes (founder and CEO of the fintech M1 Finance) acquired First National Bank of Buhl which was one of the smallest nationally chartered banks by asset size ($34M total assets) via change in control merger; and readily admitting that M1 was not ready to become a bank holding company.
  • Don’t take any of this the wrong way - I support and applaud the innovative approach by both Mr. Barnes and Mr. Hockey; and I LOVE seeing the “middleware” BaaS structure brought back to the actual bank (a model that Cross River Bank and many others have also excelled at).  I am also SUPER happy that we did not lose a charter in the M&A examples above!!!
    • To expand a little bit more, to me this is the 3rd Gen iteration of a fintech charter; and the evolution has clearly been a product of a tedious and restrictive U.S. De Novo process:
      • 1st gen was the standard de novo application by a fintech – i.e. Varo (expensive, lengthy, very restrictive business plan, and not granted for most applicants)
      • 2nd gen was “buy the bank” – i.e. SoFi acquisition of Golden Pacific Bank (very small nationally chartered bank).  Jiko really spearheaded this movement.
      • And now we have 3rd gen – a much easier “change in control” individual / investor acquisition of small nationally chartered banks.
    • Last point – remember when everyone was suing each other over the legality of a National Fintech Charter by the OCC???  Well, Uncle Sean is patiently waiting for the good folks at the CSBS, ABA, and ICBA to freak out when they realize that this is what the new de facto OCC FinTech Charter looks like….  It’s evolution due to a restrictive de novo process.

 

• Fifth Third Bank raises minimum hourly wage to $20 per hour beginning July 4.
  • At first glance, this looks like a great benefit for many of the hourly workers.  However, the contrarian in me can’t help but focus on the fact that higher costs often spur innovation and adoption to newer technologies (in this case the potential for accelerated digital transformation, AI, and RPA).
    • i.e. - not much of a coincidence to me that the same quarter where a barrel of oil hit $130 that Tesla releases record earnings – LOL!!!  Now I know there is a lot more to the Tesla story, but you get the general idea of increasing costs spurring alternate innovation.

 

• OCC issues a Consent Order against Anchorage Digital Bank for BSA/AML program violations.  Not great press for Anchorage (although I suspect they will cure the consent order successfully and quickly); but it does show consistent treatment from the OCC towards digital asset banks (i.e. crypto custody, trading, staking, etc.) as BSA/AML is still a big concern in the digital asset arena.
  • As Mike Fernandez recently pointed out in a LinkedIn post under a separate topic (but applicable here as well), “…make sure your compliance department is just as strong as your development department or all your efforts will be for nothing.”  Yep!

 

• The CFPB is no longer just showing teeth, they are biting hard – especially towards repeat offenders!  The CFPB and NY Attorney General sue MoneyGram as a “repeat offender.”
  • “MoneyGram spent years failing its customers and failing to follow the law, ignoring customer complaints and government warnings in the process,” said CFPB Director Rohit Chopra. “MoneyGram’s long pattern of misconduct must be halted.”  OUCH!!!

 

• Notable FinTech funding for the week:
  • NovoPayment (global BaaS platform) raised $19M in Series A funding with an emphasis on expansion in the U.S. market.
  • SEON (online fraud prevention) raised $94M Series B funding round to continue to expand global operations “In 2021, the company more than tripled its annual recurring revenue, grew its headcount by 4X, and opened new offices in Austin, and Jakarta.”
  • Flipside Crypto (blockchain analytics) raised $50M in new funding at a $350M valuation.
  • BlockApps (blockchain developer) raised $41M in new funding.
  • FundGuard (AI platform that assists asset managers and fund administrators to manage and service funds, ETF’s, and insurance) raised $40M in Series B.
  • ThreatLocker (cybersecurity) raised $100M in Series C .
  • Spruce (decentralized identity) raised $34M in Series A.
  • Oyster (red-hot distributed workforce platform market) raised $150M in Series C funding at a $1B valuation following their launch in 2020.
  • Convoy (digital freight network) raised $260M in Capital including $160M Series E plus $100M in venture-debt.
  • And of course we can’t pass up a 4/20 highlight – Treez (cloud-based retail and supply chain platform for the cannabis market) raised $51M in Series C funding at a $260M valuation.

 
 
Random Uncle Sean Stuff:

• Happy 96th Birthday to Queen Elizabeth II; and having taken the throne at age 25, now celebrates an impressive 70 years of leadership service (platinum jubilee)!!!  The all-out shindig for her birthday and platinum jubilee celebration will actually occur in June when it’s a bit warmer.  BBC has a great compilation of the Queen's life in pictures; and check out the Barbie Signature Queen Elizabeth II Platinum Jubilee Doll by Mattel that instantly sold out. 
  • Do you think she bought one for herself – you know I would have!!!  I can see it now…  An Uncle Sean doll (err Action Figure) holding a big ole catfish!  LOL
• Happy Earth Day!!!  In an era where we as a global society finally seem to pay more attention to ESG, conservation, pollution, and environmental restoration – it’s important to recognize the O.G. since 1970 - Earthday.org.
• And here they come….  Dad Jokes – it’s how eye roll…
  • Why do hens lay eggs?  Well, they would break if they just dropped them.  Duh!!!
  • In honor of Earth Day (and in my best Obi Wan Kenobi voice), may the Forrest be with you!
  • Do you know why you can’t hear dinosaurs pee?  Because they are extinct…. 😊

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
 
 

Happy Good Friday!!!
 
Wishing everyone a Happy Easter, but don’t forget about your taxes (due by Monday for the procrastinators like me, so there is still PLENTY of time)!!!!  Here is the Uncle Sean Update for 4/15/22:

• Look who gets the headline spot for this week’s Uncle Sean Update – SUPER excited to give a shout out to our very own Mr. Bobby Button and his promotion to Chief Revenue Officer at FedFis!!!!  Congratulations, Bobby – very well deserved!!!!

 

• More cool things are happening within Bankers Helping Bankers!!!  Check out this week’s press release and the newly launched BHB Banking-as-a-Service (BaaS) Association!!! 
  • Tanner does an excellent job describing the purpose of the BaaS Association in the article supporting the unique needs of Sponsor Banks; and I love the community aspect.  But from an old bank financial analyst perspective, Uncle Sean is particularly interested in the direct dialogue with regulators and a consistent approach regarding safety and soundness, as well as reporting (I know – I’m weird like that – LOL).  For instance:
    • How do Sponsor Banks record fintech accounts on the Call Report (I honestly can’t tell for sure on a consistent basis and my instinct suggests that this might be done in different ways by different banks)?
      • i.e. (without getting into core processing specifics) - if my bank has 1 fintech customer that brings in 20,000 DDA accounts, do I record that as 1 commercial FBO account in aggregate or 20,000 separate consumer DDA’s on schedules RC-E (total deposits for individuals) and RC-O (deposit accounts above / below $250K)???

 

• CU’s are getting in on the Direct Digital Bank (errr “Brand”) trend too - Michigan State University FCU (Charter 23279; total assets $6.7B) selects Nymbus to launch and grow their new standalone digital brand, AlumniFI – very cool!!!!

 

• Deserve launches Commercial Credit Card platform to allow banks and fintech companies to launch co-branded credit and charge card programs for their business customers in less than 120 days.  More info here - deservecards.com/platform/commercial.

 

• Revolut (global fintech who already has U.S. sponsor bank relations with Metropolitan Commercial Bank and Sutton Bank) has announced a partnership with Cross River Bank to break into the credit / asset side by providing personal loans with additional credit products in the pipeline for U.S. customers.

 

• The CFPB issues scathing remarks about TransUnion and announced a lawsuit against the firm for allegedly continuing to violate the 2017 Order as a repeat offender.
  • “TransUnion is an out-of-control repeat offender that believes it is above the law,” said CFPB Director Rohit Chopra. “I am concerned that TransUnion’s leadership is either unwilling or incapable of operating its businesses lawfully.”  OUCH!!!!
  • Even more interesting (and slightly terrifying) is the fact that the actual complaint seeks to hold TransUnion executive John Danaher jointly and severally liable for damages, restitution, disgorgement of unjust enrichment, and civil money penalties.

 

• Blockchain.com announced a sponsorship deal with the Dallas Cowboys……..
  • I wonder if this will help the Cowboys do more than “one and done” in the playoffs……????  😊
    • Uncle Sean can’t help but have another traumatic flashback to the Dallas Cowboys calling a QB Draw and running the ball up the middle for 17 yards on a second-and 1 down with no way to stop the clock as time expired thus losing the playoff wild-card game 23-17 to San Francisco.  C’MON MAN!!!  Still not over it…  LOL!!!

 

• CPI came in at 8.5% year-over-year and 1.2% for the month of March – the highest levels since December 1981 per the BLS report.  Core CPI came in at 6.5% year-over-year and 0.3% for March.  So basically, if you are under the age of 60 – you have never experienced inflation this high as a working adult.
  • What was life like in 1981???  Well I’m glad you asked - LOL:
    • MTV launched and the first video was (appropriately) Video Killed the Radio Star by The Buggles; DeLorean cars debuted; we watched The Royal Wedding of Prince Charles and Dianna; witnessed the first space shuttle launch; and Bette Davis Eyes by Kim Carnes was number 1 on the Billboard Top 100 songs of 1981.
    • In the Mayo household, we had a telephone cord that was about 600,000 feet long (only exaggerating a little) so we could talk on the wall phone in private – that thing would inevitably get tangled and twisted up and it would take a NASA engineer to fix it; tube socks to the knees were standard (and cool); everyone had a Rubik’s Cube and had learned how to take it apart; and we were still rockin’ shag carpet and bell bottoms!!!!

 

• FIS unveils their Banking-as-a-Service Hub allowing financial institutions to rapidly launch new fintech offerings.  “By delivering banking and payments products in an ‘as-a-service’ fashion, institutions can pressure test rapid innovation with a low-risk “pay-as-you-grow” model.

 

• Wright-Patt Credit Union in Beavercreek, OH (charter 66328; $7.1B total assets) becomes the latest FI reduce OD and NSF fees.

 

• Notable FinTech funding for the week:
  • Circle (issuer of USDC stablecoin) raised a massive $400M in capital ahead of the previously announced SPAC merger that is expected to close by year-end.
  • Wagestream (UK based financial app for front-line hourly workers) raised $175M in capital consisting of $60M Series C and $115M debt facility with a big push to expand in the U.S.
  • Capital on Tap (SMB CC platform) raised $200M in funding to expand their U.S. business credit card platform (Visa issued by WebBank).
  • Welcome Tech (digital banking and PFM platform for immigrants) raised $30M in new capital to “support the growth of its digital wallet and subscription healthcare program, and to bolster the national launch of its credit card product in the second half of 2022.”
  • Winden (business banking app for digital entrepreneurs) raised $5.3M in Seed funding. 
  • Creative Juice (banking platform for creators) raised $15M in Series A funding round plus another $50M for their Juice Fund which invests in creators and their companies.
  • Ugami (financial platform for gamers) raised $4.8M in Seed funding and launched a closed beta for their App and Visa debit card issued by Blue Ridge Bank, NA.

 
 
Random Uncle Sean Stuff:

• #42 – Today is Jackie Robinson Day marking the 75th anniversary of Jackie Robinson’s MLB debut and the breaking of baseball’s color barrier with celebrations across the country.
• It is Easter weekend, and yes – Aunt Patty and I still hide easter eggs for our adult children (Easter baskets and all); and hope to be fortunate enough to do so for the remainder of our days!!!!
• Unfortunately, it’s also tax day (ugh) although the deadline this year is April 18 in recognition of Emancipation Day in D.C.  Since we all love taxes so much, here are a few tax related Dad Jokes:
  • Pre-tax income is just nasty because it’s gross income (I laughed way to hard at that one due to my accounting background)….
  • When you spell “The IRS” it looks a lot like “THEIRS”….
  • Do marijuana dispensaries file Joint returns…???
  • And lastly, a Pro Tip for you – I drank 2 bottles of wine before doing my taxes last night and apparently I am getting back $1.5 Million!!!!  😊

 
 
Have a GREAT Easter weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com#FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.

​ Happy Friday!!!
 
April is Community Banking Month!  Don’t forget to sign up here to receive the Uncle Sean Update straight to your inbox every week.  Here is the Uncle Sean Update for 4/8/22:
 

• The Fed released the March FOMC Minutes this week showing general consensus is to reduce the size of the Fed Balance Sheet by up to $95B per month ($60B in Treasury Securities and $35B in Agency MBS) as conditions warrant and most likely a 50 bps interest rate increase - all beginning at the May FOMC meeting (provided all data forecasts come to fruition).
• Adding on for more strong employment data to support Fed tightening, initial unemployment claims fell to 166,000 (estimate was 200,000) for the week ended April 2 – the lowest in 54 years going back to November 1968.

 

• FIS Worldpay announced that they are the first global merchant acquirer to allow merchants to receive settlement in USDC (USD Coin as issued by Circle) for both crypto-native as well as traditional businesses to drive digital currency adoption.

 

• American Express expands their partnership with i2C (card issuing, lending, and payments platform) to North America stating that “the American Express network is ‘open for business’ with fintechs by creating a plug-and-play onboarding platform to bring innovative products to market at speed.”

 

• The Clearing House (TCH) makes it official this week by announcing the increase of the transaction value limit to $1 million on the RTP® network effective April 18.  This is an increase from the current transaction limit of $100,000 and follows the previously announced increase to the Same-Day ACH transaction limit to $1 million which took place on March 18.

 

• GoDo (fintech earned wage access “EWA” platform) partners with Highnote (card issuer processor and program manager) to launch the GoDo Card - a Mastercard prepaid GPR debit card issued by Sutton Bank.   

 

• More and more financial institutions are continuing the trend of dropping NSF and / or revising overdraft programs for other fee related services.
• Fifth Third Bank announced they will eliminate NSF fees for consumer accounts and highlights Fifth Third Momentum Banking giving customers various options to get access to their money faster and address liquidity issues.
• Stanford Federal Credit Union also announced the elimination of NSF fees for its members and is in the process of revising their entire overdraft protection program.

 

• Some high profile regulators giving crypto related speeches caught my attention this week.  The punchline is that U.S. regulators are embracing newer digital technologies and ramping up investor / consumer protections – NOT attempting to block or ban crypto as other countries have done….  Meaning digital assets / cryptocurrencies are largely here to stay.
• The messages are clear and consistent – protection of consumers and retail investors, thwart illegal use, mitigate market risks, and guard against systemic financial risks, while encouraging innovation (whew – I’m glad that’s not my job to accomplish all of that – LOL).  And the regulators certainly appear to be working together to deliver that consistent messaging.
• U.S. Treasury Secretary Janet Yellen’s speech this week reiterated that crypto regulations should support responsible innovation while managing risks.
• SEC Chairman Gary Gensler’s speech on Monday focused on regulating crypto markets the same as other exchanges an protection of crypto investors with an emphasis on:
• Retail investor protections
• Teaming up with the Commodities Futures Trading Commission
• Register and regulate crypto platforms, including working to separate out the custody of assets to minimize risk
• Acting Comptroller of the Currency Michael Hsu echoed extremely similar comments today discussing regulation, architecture, and interoperability of stablecoins.

 

• Meanwhile (also important for my fintech friends), the FDIC issued FIL-16-2022 Notification of Engaging in Crypto-Related Activities reminding bankers that all FDIC-supervised institutions “that are considering engaging in crypto-related activities to notify the FDIC of their intent and to provide all necessary information that would allow the FDIC to engage with the institution regarding related risks. Any FDIC-supervised institution that is already engaged in crypto-related activities should promptly notify the FDIC.”

 

• “That escalated quickly” (in my best Ron Burgundy voice)….  Early this year it was reported that Fast (one-click online checkout firm) was looking to potentially raise additional Series C equity capital.  Then reports came out late last week that Fast had hired Morgan Stanley for a possible sale.  Early this week Fast announced on their website that they will be shutting down operations effective April 15.  This comes after a $102M Series B in Jan 2021 and total capital raises of $124.5M with Stripe as lead in the Series A and Series B rounds.
• NPR has a good summary detailing that Fast AF, Inc. (that is not a typo) allegedly generated $600K last year in top line revenue, but had a $10M monthly cash burn (those numbers are not typo’s either) – WHOA NELLY!  Well shucks, there’s yer problem right there!
• No down round, no layoffs, just an abrupt shutdown. 
• I get it.  It’s not like another $100M or so was going to fix that cash burn and excessive spending pattern; and I’m guessing the Stripe brothers were tired of paying for that party.
• A piece of good news for some of the employees – Affirm is making job offers to many of Fast's engineers.
• There has been a significant amount of talk this year on how VC multiples and valuations change materially as interest rates rise.  Unfortunately, this may be the beginning of a rough couple of years for firms that still have needs for additional equity funding for cash flow with a longer break-even window.  Maybe the adage of “move fast and break things” only applies when interest rates are near zero…???

 

• Bolt (one-click online checkout firm, and yes – competitor to Fast) announced an agreement to acquire Wyre (fiat-to-crypto and payments infrastructure firm) to power up the industry’s first one-click crypto checkout.  CoinDesk has a good summary pinning the deal at $1.5B.

 

• I started to cover Jamie Dimon’s Annual Shareholder Letter that was released Monday, but I changed my mind – LOL!!!!  If you really want to – you can read up on it here.  Spoiler alert – the U.S. economy is strong, interest rates need to rise to fight inflation, competitive and regulatory threats abound, the war in Ukraine and Russian sanctions will slow the global economy.  I know – shocking revelations, right (sarcasm)?!?!

 

• Notable FinTech funding for the week:
• Unifimoney (digital wealth mgmt. platform for banks and CU’s) raised $10M in Seed round to “extend its coverage of alternative assets including collectables, sports memorabilia and NFT's in addition to a full suite of retirement accounts with both traditional and alternative asset IRA's.”  Future products include an investment rewards CC for FI customers.
• RenoFI (residential renovation lending platform for lenders) raised $14M in Series A funding round to “empower lenders to offer best-in-class financing solutions that better meet the needs of today's homeowners.”
• Remote (international payroll, benefits, HR, and employee onboarding / compliance platform for businesses) raised $300M in Series C funding at a $3B+ valuation.
• Fidel API (financial infrastructure API platform for card transactions) raised $65M in Series B funding round to continue global expansion.
• Binance.US (crypto exchange) raised a massive $200M Seed Round at a $4.5B valuation – WOW that’s a big seed round.
• Ellevest (wealth mgmt. platform designed specifically for women) raised $53M in Series B funding round.
• Vontive (residential mortgage and RE investment platform) raised $25M in Series B plus $110M in debt for total of $135M in capital.

 
 
Random Uncle Sean Stuff:

• The NCAA Final Four and Championship basketball games were fantastic!  Congrats to the University of Kansas Jayhawks for overcoming a 16 point deficit (the largest in NCAA title game history) to win the NCAA Men’s National Championship!  Equally as exciting – congrats to the University of South Carolina Gamecocks for a dominating performance to win the NCAA Women’s National Championship!
• And now, as we begin to carefully emerge from years of hibernation within our own socially isolated (and many times depressed) Covid cocoons, a ray of light begins to emerge…  Baseball is here!!!  Seen by many as the true beginning of spring thus exiting a multi-year winter of our discontent (see what I did there – LOL).  Regardless if it is MLB or your local Little League, baseball appeals to all of our senses and social needs.  From the wide expanse of the bright green field to the smell of leather and freshly cut grass (excluding the pungent nature of Icy Hot and pine tar), to the crack of a bat, the click-clack of cleats on concrete, and the snap of the ball as it hits the catcher’s glove.  The sun on our skin and the taste of your favorite ballpark indulgence (for me it is hot dogs, definitely hot dogs, yes – more hot dogs please) and the comradery of a team including family, friends, and water-cooler discussions.  Ahhhh yes, spring is here; and with it comes new beginnings.  WOW – that was deep!!!! 😊
• Here come the Dad Jokes:
• Beer is now cheaper than gas.  So drink, don’t drive.
• If you replace your potato chips with grapefruit as a snack you can lose up to 90% of what little joy you still have left in your life!!!
• I decided to make sure Aunt Patty woke up with a big smile on her face Saturday morning.  Now I’m not allowed to have Sharpies in the house anymore…  😊

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
 
 

 Happy Friday!!!
 
It’s already the second quarter – how did that happen???  Here is the Uncle Sean Update for 4/1/22:

• A HUGE salute to Tennessee Bankers Association for being the latest community bank association to offer the Bankers Helping Bankers platform for their member banks in Tennessee!  This is how we win in community banking!!!

 

• Some quick macro-economic data for the week:
  • U.S. economy added 431,000 jobs (estimate was 490,000) in March and unemployment dropped to 3.6% (estimate was 3.7%).  CNBC reports that despite the jobs miss, the 1st quarter ended with nearly 1.7 million jobs added.

 

• Check out Plinqit (savings app) announcing they are now integrated with Jack Henry Banno Digital Platform .  We talked about the JKHY open platform a few weeks ago – basically if you are a JKHY bank, you can easily integrate new technologies (such as Plinqit) to your bank through an open platform marketplace.
  • Plinqit is a mobile-first savings platform that that pays customers to learn about personal finance thus driving higher user engagement for financial institutions.  I like it as I am a huge proponent of financial literacy!
    • One more time – “Wealth does not create financial literacy, rather it is financial literacy that creates wealth and ultimately financial independence.” – Uncle Sean 😊

 

• Alkami (Nasdaq: ALKT) announced an agreement to acquire Segment, Inc. for $135.5M in cash.

 

• Yep – it was just a matter of time…  Voyager finds themselves in a bit of a legal battle as securities regulators in at least seven U.S. states are scrutinizing Voyager's interest-bearing crypto accounts as unregistered securities.  The specific states are New Jersey, Texas, Oklahoma, Alabama, Washington, Kentucky and Vermont.
  • Voyager is the firm touting 9% debit card rewards (which we pointed out in the 11/19/21 Uncle Sean Update was really Circle lending spread based on conversion to USDC with no SIPC or FDIC insurance once converted).  Shouldn’t be much of a surprise as we also mentioned in the same update that BlockFI was being scrutinized for the same (high-yield crypto accounts) to which BlockFI ultimately settled for $100M fine with the SEC back in February and pulled the product.
  • To be fair, Voyager responded to the cease and desist orders by stating they are fully cooperating and communicating with the regulators - but they feel that their Earn Program and Voyager Earn Accounts are not securities.
  • Uncle Sean expects to see much more SEC and state regulatory action in this space (high-yield interest earning crypto lending accounts) going forward.

 

• The SEC issued internal interpretive guidance to staff this week stating crypto custody arrangements should be treated as liability on the balance sheet of the custodian, accounted for at fair value, and fully disclose the related risks to investors (shocking, right? – sarcasm).   Kinda makes me wonder how in the heck custodians were reporting this to begin with??? LOL!!!  All kidding aside, I believe this has more to do with the actual disclosures than the recording of a liability (I hope so anyway).
  • If you want to get your inner accounting freak on (like me) – you can read the SEC Staff Accounting Bulletin (SAB) No. 121.
  • Meanwhile, “U.S. regulators remain undecided on how to treat cryptocurrencies, with regulators still discussing new rules for how banks should handle digital assets.” 
    • Hear that sound???  That’s my biological banking clock ticking – LOL!!!!

 

• Paystand (cloud-based hybridized B2B payment platform built on SaaS and blockchain) is launching a DeFi Visa Corporate Expense Card (currently in wait-list mode) with Bitcoin points rewards.  Interesting to me from a corporate treasury perspective if you want to “dip a toe into crypto” in a low risk business rewards standpoint.

 

• MetaBank (very active sponsor bank) announces name change to Pathward as part of a rebranding.  Meta Financial Group, Inc., MetaBank’s public holding company, will also be changing its name to Pathward Financial, Inc. by the end of this calendar year.
  • This comes after Facebook (err Meta) bought the MetaBank names and rights for a cool $60M as Facebook changed their name to Meta to more align with Metaverse.
  • Hell yeah – for $60M I will sell my name too!!!  Any takers?

 

• Hackers steal over $615M in crypto from Axie Infinity’s Ronin Network – OUCH!!!!  The hackers exploited a vulnerability in the bridge between Ronin Network and the Ethereum blockchain.
  • The article does state that cross-chain bridges (i.e. network integration) are “still an area of development”, but I can’t help but wonder if this raises broader questions about the overall security risks of integrating multiple blockchain networks (interoperability)?
  • As bankers, we are more than just a little bit familiar with the risks and perils of network interoperability!

 

• Some familiar bank serial acquirers making moves this week (data source: FedFis):
  • Nicolet Bankshares, Inc. (Nicolet National Bank; $7.7B Total Assets) to acquire Charter Bankshares, Inc. (Charter Bank; $1.1B Total Assets) for $158M per the investor deck (oh yeah - Uncle Sean loves those investor presentations!).
  • Hometown Financial Group, Inc. ($3.6B multi-bank holding company) to acquire Randolph Bancorp, Inc. (Envision Bank; $803M Total Assets) for $146.5M.
  • Seacoast Banking Corporation of Florida (Seacoast National Bank; $9.7B Total Assets) to acquire Apollo Bancshares, Inc. (Apollo Bank; $1B Total Assets) for $168.3M per the investor deck.
  • National Bank Holdings Corporation (NBH Bank; $7.2B Total Assets) to acquire Bancshares of Jackson Hole Incorporated (Bank of Jackson Hole; $1.6B Total Assets) for $230M.

 

• Don’t look for Credit Union acquisitions of Banks in Mississippi anytime soon as Governor Tate Reeves signed a bill into law that stating that, “banks registered in Mississippi can only enter into a merger or acquisition deal with a bank or financial institution that is insured by the Federal Deposit Insurance Corporation (FDIC).”  Banking Exchange has a good summary with links to the actual House Bill.

 

• Here is another one that we wrote about a few months ago in the 10/22/21 Uncle Sean Update where Adyen (international payments giant) used their European Bank license to obtain a U.S. Bank Charter as a Foreign Bank Branch allowing them to operate in the U.S. as an FDIC insured bank.  Well, surprise, surprise, surprise (in my best Gomer Pyle voice), Adyen announced their expansion plans to offer embedded finance and business banking services in the U.S. “without the barriers of regulatory complexity, lengthy product development, or sponsor bank restrictions."  Fortune also has a good write-up detailing the banking services including multi-currency bank accounts, corporate credit cards, short-term merchant cash advances, and instant business loans.
  • Don’t get me wrong – I don’t blame them at all.  In fact, I applaud their approach.  The bigger issue is that I am still waiting to see if this “fintech / foreign bank branch entrance” becomes a trend due to an overly restrictive U.S. de novo process for new bank charters.

 

• Citizens Financial Group, Inc. (Citizens Bank; $188B Total Assets) made a series of announcements this week:
  • Citizens joins the growing ranks of financial institutions offering an Overdraft-Free Checking Account called EverValue Checking with a monthly fee of $5.
  • They also announced the launch of an Earned Wage Access (EWA) program for their corporate clients to give employees on-demand access to their earned pay as an employee benefit.  Additionally, Citizens will be launching Citizens Paid Early™ in the second quarter of 2022 allowing customers to access their direct deposits up to two days early.

 

• Notable FinTech funding for the week:
  • It’s official and I can write about it now…  Cross River Bank (leading BaaS bank, sponsor bank, host of a direct digital bank, payments API leader, and crypto pioneer) raised $620M in Series D funding round at a massive $3B valuation – WOW!!!!! 
  • Outgo (banking solution for freight carriers) raised $3.4M in funding and emerged from stealth to assist owner-operators in the freight industry with a holistic platform including “automating broker setups, invoicing, factoring, collections, accounting, and tax services without contracts or minimums.”  The factoring is cool as it employs a variable rate approach that declines daily based on the number of days financed (I know – it’s about time that became the norm).  There is also an Outgo Business Visa Debit Card issued by Blue Ridge Bank, N.A. that uses interchange to offset factoring fees.  Check them out at Outgo.co.
  • FinPay (patient health financing and literacy platform) raised $15M in growth round (Crunchbase lists this as a Series D) citing revenue growth in excess of 360% over the last two years.
  • Cloaked (consumer identity protection) raised $25M in Series A funding round.
  • Modern Treasury (payments infrastructure) raised $50M as a Series C-2 round bringing the total C raise to $135M (the initial $85M Series C was raised back in October) with a valuation in excess of $2B.
  • Effectiv (AI based fraud and risk mgmt. platform for mid-sized banks, CU’s, and fintechs) raised $4M Seed Round.

 
 
Random Uncle Sean Stuff:

• The Final Four is set!  For the men it is Villanova vs Kansas and UNC vs Duke (separated by just 10 miles in NC, the Tobacco Road Rivalry is widely seen as one of the most intense rivalries in all of U.S. sports).  For the women it is South Carolina vs Louisville and Connecticut vs Stanford.  Should be an exciting weekend!!!
• I don’t really have any cool April Fools stuff – other than the historic BBC Spaghetti Tree Harvest hoax from April 1, 1957.  Now that’s pretty damn funny!!!!!
• And some Dad Jokes to kick off the weekend:
  • When everything is coming your way, you’re probably in the wrong lane!!!
  • Research has shown that laughing for 2 minutes is just as healthy as a 20 minute jog.  So now I’m at the park eating a bag of chips and laughing at all the joggers!!!
  • The word hyphenated has no hyphen but non-hyphenated does.  Hmmm…
  • And lastly, here’s a question for all the mind readers out there……………………….  😊

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
 

Happy Friday!!!
 
FinTech, Banking, Data – it’s in our DNA!!!  Here is the Uncle Sean Update for 3/25/22:

• High Five to the Community Bankers of Iowa (CBI) as the latest association of community bankers offering access to the Bankers Helping Bankers platform for their member banks in Iowa!  There is no stopping this movement!!!

 

• So we talked about this a few months ago back in September, but it is reality now.  Apple launches first driver's license in wallet with Arizona.  Uncle Sean will be curiously watching this to see if/how eKYC evolves from here adding “biometric authentication using Face ID and Touch ID helps ensure that only the person who added the ID to the device can view or present their ID or license in Wallet.”  So let’s check this out:
  • Here is what I have learned.  You scan the front and back of the driver's license or ID, take a video selfie to authenticate that “you are you”, then submit the image is sent to the state motor-vehicle department for verification.  Apple Support details the step by step process fairly painlessly.  You can also pair to your Apple Watch.
    • Authentication is done by Face ID or Touch ID to make sure that only you can use your license or ID (furthering wallet security).
  • Apple said the electronic version can be used at TSA checkpoints at Phoenix Sky Harbor Airport for now.  So don’t forget to have your physical ID for your return flight!!!  Apple says it's working with the TSA to get the digital IDs accepted at more airports; and is also working with the following states:
    • Colorado, Hawaii, Mississippi, Ohio, and the territory of Puerto Rico - plus the previously announced Connecticut, Georgia, Iowa, Kentucky, Maryland, Oklahoma, and Utah
  • Looking at this another way…..  Uncle Sean feels this is not too far off from being an NFT by creating a trusted, digital version of a real world asset (NFTs don’t have to be just art or music!).  Pretty cool!!!  😊

 

• Robinhood launched a new debit card called the Robinhood Cash Card.  The new Cash Card is in “wait-list” mode; and Robinhood is not accepting anymore applications for their current Cash Management account and card (these accounts will be converted to the new Cash Card).  Let’s dive into a bit of recent history as the last few years have been interesting in the ‘Hood:
  • Recall back in 2018 when they tried to launch Robinhood Checking with insurance through SIPC (cough, cough) and a stout 3% return - yeah, that ended badly with the SIPC slamming the brakes and Robinhood canceling the product in a very public manner.
  • Then they launched Robinhood Cash Management late in 2019 with a 2.05% APY (Sutton Bank Mastercard debit card), but this time moving uninvested cash to actual program banks for FDIC coverage.  Much better!
  • Now, Robinhood is no longer accepting new customers on the Cash Management platform and has re-launched as Cash Card which is now a Prepaid Mastercard GPR issued by Sutton Bank (here is the cardholder agreement).  The Cash Card is equipped with weekly round-ups and bonuses that automatically invest into the SIPC side with fractional shares.  Additional features include early access to direct deposit, instant savings (think rewards), and the ability to split your paycheck to automatically invest in Robinhood’s brokerage and crypto accounts.
    • I think the third time’s a charm here as Sutton (as a sponsor bank) is doing some cool things in the Prepaid GPR space.  Looks like Robinhood may have got this one right and I think the auto investing feature is pretty slick.

 

• Fed Chairman, Jerome Powell gave some words of wisdom this week speaking on a panel at the Bank of International Settlements Innovation Summit on CBDC’s stating that digital innovation in the financial sector is here to stay and with it, new regulations will need to be created per this Yahoo Finance article.
  • This Banking Dive article covering the same speech outlines Powell’s 4 qualifications of a US CBDC (ensure privacy, be identity verifiable, be intermediated, and widely accepted as a means of payment).  "It’s highly likely that digital financial activities that are currently outside the regulatory perimeter will … be brought within it, which is necessary to level the playing field, keep trust of users, protect consumers, and all of that," Powell said. 
    • Yep…  Regulation is coming and it might take some time…

 

• Figure announced personal crypto-backed loan of $10K - $1M without having to sell your crypto assets (BTC or ETH) so you can continue to HODL.  Not surprisingly, Figure also announced crypto home mortgage up to $20M with 100% LTV secured by both your crypto and the property.  WOWZA!!!!

 

• Bond (embedded finance platform) launched Bond Treasury and announced a partnership with Texas Medical Center entering the healthcare payments space.

 

• Florida becomes the most recent (and largest) state to mandate personal finance education in high school.  This brings the total to 11 states that have a mandatory financial literacy course requirement to graduate.  According to the Next Gen Personal Finance bill tracker, there are 54 personal finance education bills pending in 26 states.  Nice!!!!

 

• The payroll API aggregators had a busy week!
  • Rize (fintech-as-a-service) partners with Pinwheel to allow Rize’s customers to securely switch direct deposits, access income and employment data (VOE anyone?), and more.
  • Sila (payment infrastructure-as-a-service) launches Virtual Accounts and partners with Argyle to allow Sila customers the ability to perform instant in-app direct deposit switching (including all or part of their paycheck) across Argyle’s network.

 

• Holy Cow - I guess interest rate increases have not deterred new funding (not yet anyway)…  Check out the notable FinTech funding for the week:
  • Ramp (corporate card and expense mgmt) raised $750M in financing ($200M equity plus $550M in new debt financing) at a $8.1B valuation citing “close to a 10x bump in revenue year-over-year in 2021.”
  • ClearBank (UK fintech RTP) looks to expand to the U.S. as they raise $230M to fund expansion plans.
  • DailyPay (on-demand pay / EWA) secured a $300M revolver.  Recall last month their announcement powering the PNC EarnedIt pay solution – DailyPay is on a roll.
  • Dave (fintech banking app) secured a $100M investment from FTX and is currently “exploring ways to introduce digital asset payments into Dave’s platform.”
  • Finally (fka Back Office) raised $95M in capital comprised of $11M in Series A plus $85M credit facility to expand into lending for SMB’s.
  • Jeeves (corporate card and exp mgmt) raised $180M in Series C at a $2.1B valuation – a 4x increase in valuation in less than seven months.
  • Capitolis (capital markets platform) raised $110M in Series D at a $1.6B valuation.
  • ChargeAfter (BNPL) raised $44M in Series B round.
  • Tomo (mortgage approval) raised $44M in Series B funding round at a $640M valuation.
  • Glia (digital customer service solution for financial institutions) raised $45M in Series D round at a $1B valuation.
  • TokenEx (cloud tokenization to secure sensitive data such as cardholder data) raised $100M in Series B funding round.
  • MixMode (cybersecurity) raised $45M in Series D to automate cyberattack detection.

 

• We lost former Secretary of State Madeleine Albright this week at the age of 84 – a true American patriot, diplomat, human rights champion, and recipient of the Presidential Medal of Freedom.  PLEASE do yourself a favor and read this NY Times article with an amazing biography of her life (specifically the Fabricated Memories section).  Somewhat embarrassed, I admit that I had no idea that Madeleine Albright and her family were forced to evacuate their home country of Czechoslovakia twice as refugees in a war-torn Europe (first in 1939 when she was just 2 and again in 1948) eventually landing in the United States.  A fact that is certainly not lost on me considering the current war in Ukraine and the children refugees specifically. 
  • I simply can’t help but wonder (and silently hope) if a future humanitarian hero is now being raised due to an unimaginable present situation as a child in Ukraine…..

 
 
Random Uncle Sean Stuff:

• Cooking up some cajun shrimp and sausage tonight for dinner!!!  Here is what I use - Cajun's Choice - Cajun Shrimp Seasoning Mix.  It is super easy and DELICIOUS!!!! You can thank me later!!!!
• Am I the only one who thought the Uber agreement to list NYC taxis on its app was just completely ironic???
• And some quick inspirational / philosophical Dad Jokes:
  • Everyone knows that light travels faster than sound….  Which is also why some people seem incredibly bright until they speak.  LOL
  • My doctor told me to avoid any unnecessary stress, so I threw his bill in the trash!  Yep – I feel better already!!!!
  • Always remember, to err is human but to forgive is not FDIC policy.  😊

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
 

​Happy Friday!!!
 
I don’t know about you, but that time change beat me up all week long.  All is well though as the first day of Spring is this Sunday – Woohoo!!!  Don’t forget to sign up here to have the Uncle Sean Update delivered straight to your inbox each week (all the cool kids are doin’ it).  And without further ado, here is the Uncle Sean Update for 3/18/22:

• Huge shout out to the Independent Bankers of Colorado (IBC) as the latest association of community bankers offering access to the Bankers Helping Bankers platform for their member banks in Colorado!!!  Welcome to the show!!!!!

• It’s Fed week – so pardon me while I completely geek out!!!  As expected, the Fed raised interest rates 0.25%.  This follows the end of the taper of QE / bond buying program of $120B per month as well.  While much of the economic data is screaming for a 50 bps rate hike, geopolitical concerns surrounding the war in Ukraine certainly dictate caution.  CNBC has a good summary indicating an aggressive path forward for the remainder of the year signaling 6 rate hikes and a consensus targeted funds rate of 1.9% by year end.  This is based on the Summary of Economic Projections (see page 2 for median fed funds rate projection as well as the much publicized “dot plot” on page 4).  If you want to get really weird (it’s okay, I do it too – it’ll be our secret), you can read the 26 page transcript of Chair Powell's Press Conference.
  • Uncle Sean goes “off the rails” here with some unsolicited op-ed, so feel free to scroll down 😊
    • I know I have said it before, but it bears repeating…..   Keep in mind that the Summary of Economic Projections (SEP) / “dot plot” is not a plan of action, even though most media outlets absolutely love it; and many publicize this as policy carved in stone.  It is simply a median of assumptions based on current economic forecasts.  These forecasts are highly variable and subject to change especially considering we are still in a global pandemic, still experiencing supply chain issues, labor shortages, etc. – not to mention the unknown impact of the war in Ukraine. 
    • Think of the dot plot kind of like the Treasury yield curve – it moves with time, and is a measure of current assumptions, but is not necessarily predictive policy.  DAMN – that was deep!!!! LOL
    • That being said, rising rates are generally a boon for banks; and probably not a good sign for challenger fintech companies with single-source revenue models (i.e. interchange only).  I suspect we will see some upcoming consolidation (or elimination) in this challenger bank space as VC money may be looking elsewhere for growth.  Might be a buying opportunity for banks to pick up a challenger / fintech as a direct digital bank if the tech stack is appropriate.

• A couple of weeks back, we mentioned Texas National Bank and their new direct / digital bank launch called Bankers Lender – a direct result of the Bankers Helping Bankers platform using the “sidecar core concept” as created by FedFis.  Now we have a little more insight to share as Data Center, Inc. (DCI) is the core for the direct digital bank and integrates directly with the existing core (not a replacement – i.e. the sidecar concept) of the bank.  This is a new and efficient approach to launching a direct digital bank as the bank will have two cores operating independently serving different parts of the business, yet completely integrated.  This is fantastic!!!!!

• Late last week, MeridianLink (owned by PE firm Thoma Bravo) announced an agreement to acquire StreetShares.  The StreetShares’ Atlas Program allows banks to be up and running in a fully digital business lending environment in 45 days or less (I have seen the product first hand and it is very cool).  Definitely looks like a good pairing for MeridianLink – and that StreetShares Team is awesome!!!

• Currencycloud and Moov are teaming up for payments opening up new capabilities for customers of both companies.  Making “moving money easier” is the premise behind both entities as Currencycloud tackles international payments (including currency exchange) while Moov accepts, stores, and disburses money domestically.   

• Worth noting – Nacha increased the limit on Same Day ACH to $1M effective today, March 18, up from the current cap of $100K that was set back in 2020.  Additionally, this Payments Dive article states that The Clearing House (operator of RTP) is also increasing the cap that can be sent on their real-time transfers to $1M on 4/18/22 – also up from $100K from 2020.
  • Definitely expect $ volumes to explode due to these increases.

• Klarna is now offering BNPL for US gasoline purchases…  Sheesh….  C’mon man!!!  Payments Journal has a good summary with the conclusion (that I wholeheartedly agree with) of “lenders have a responsibility to keep borrowers out of trouble.”
  • I believe that Klarna actually struck those deals with Chevron and Texaco last year, but advertising this now is probably not the best of ideas – and will likely garner even more attention from the CFPB…  Good luck!!!!  LOL!!!

• Ahh – now this is some GREAT news as everyone knows I am a HUGE advocate of financial literacy especially in our school system.  Visa and the Council for Economic Education announced the launch of FinEd50 to advocate for financial education for students across America. 
  • FinEd50 is a “nationwide coalition dedicated to state-level action that guarantees equitable access to personal finance courses and provides teachers with training and curricula on school-based financial education.”  YES!!!!!
    • Always remember, “Wealth does not create financial literacy, rather it is financial literacy that creates wealth and ultimately financial independence.” – Uncle Sean 😊

• Notable FinTech funding for the week:
  • ConsenSys (crypto developer and parent company of Ethereum-based MetaMask wallet) raised a massive $450M in Series D funding round at a whopping $7B valuation – almost double the valuation in four months!!!!
  • Aptos (blockchain startup founded by some of Facebook Meta’s former crypto team) raised $200M in a “strategic” investment; and while valuation was not disclosed, Aptos stated that they were “well off into the unicorn territory” as they build out their Layer-1 decentralized network.
  • Stellar (credit builder and bill pay app) raised $7M in initial funding pending their anticipated launch in May 2022.
  • Cowbell Cyber (cyber insurance & underwriting) raised $100M in Series B funding round.
  • EarnUp (mortgage industry payment and data solution) raised $31M in Series C.
  • Doxo (bill pay app) raised $18.5M in Series C funding.
  • Novel Capital (non-dilutive ARR financing) emerges from stealth mode with $115M in initial Equity and Debt funding.
  • Onuu (subscription based banking, financial literacy, and insurance platform) raised  $6M in Series A round.
  • Ponto (an API-driven blockchain infrastructure layer for global payments) $20M in Seed funding.  Wow – that is a huge seed round!  This paragraph in their press release sums everything up nicely, “In order to support neobanks, wallets, and mobile financial experiences being built around the world, Ponto provides regulatory infrastructure and APIs for developers building global banking and payments products on top of decentralized finance. By streamlining settlement, liquidity, compliance, and risk management, Ponto’s bank-grade solution enables borderless asset interoperability across blockchains and local currencies.”  Nice!!!!

 
 
Random Uncle Sean Stuff:

• Check out the giant floating drone QR code over Austin at the SXSW festival this week.  Made up of 400 drones by Sky Elements and measuring 300 feet tall (that’s the same height as the Statue of Liberty) by 600 feet wide, the fully functional/scannable QR code was part of a marketing campaign by Giant Spoon to promote the upcoming sci-fi series, Halo by Paramount +.  Pretty cool!
• While doing some research this week (okay, okay, I was surfing the internet - just don’t tell my boss!!!!!), I ran across these floating cabins at Lake Murry in southern Oklahoma.  This just might end up on Uncle Sean’s vacation destination short-list!!!! 
• And of course a couple of obligatory Dad Jokes:
  • I checked Kelley Blue Book for my car’s value, and it asked if the gas tank was full or empty…
  • My computer beat me in chess, but was no match for me in kick boxing!!!
  • In recognition of St. Patrick’s Day, here are a few for my fellow Irish brethren:
    • Brilliant Irish text message - “Mary, I’m just having one more pint with the lads.  If I’m not home in 20 minutes, read this message again.”
    • What do you call an Irishman sitting on the porch?  Paddy O’Furniture!!!!  😊

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.