Happy Friday!!!
 
Interesting economic updates and quite a bit going on in the bank core processor market this week – so let’s jump right in!  Here is the Uncle Sean Update for 2/7/25:

• Kicking off this week is a special congratulations to Mr. Cal Roberson for his promotion to Vice President, Financial Institution Division for Integris.  Be sure to check out Integris' Managed IT services built for banks and credit unions – and tell them Uncle Sean sent you! Congrats Cal – well deserved!!! 🤙

• The BLS Jan Jobs Report comes in with a mixed bag of results leading with 143K jobs added in January (below 175K estimate and well below Dec results of 307K which was revised up by 51K – see revisions here).  However, the unemployment rate fell to 4.0% as the labor force participation rate increased 0.1% over Dec to 62.6%.  Average hourly wages rose more than expected by 0.5% for the month and up 4.1% YoY (estimates were 0.3% and 3.7% respectively).
  • Keep in mind that there are some material issues with census data – notably the household survey data for Jan reflects relatively large updated population estimates including net immigration updates.  CNBC has a pretty good summary.

• 👀 Looks like we have our first bank tech vendor market event of the year as Finovifi has acquired Modern Banking Systems (MBS) core processing platform.  Very interesting expansion and integration strategy move for Finovifi.

• First Security Bank & Trust (an MDI bank in Oklahoma City) selects Smiley Technologies as its core AND digital banking provider.  Nice win for Smiley in replacing core, online, and mobile for the trifecta!!! 👍

• 👉 CSI announced the launch of its real-time proprietary check fraud detection solution for NuPoint® customers and powered by Mitek Systems.

• Fiserv (NYSE: FI) continues to lean into embedded finance opportunities per CEO Frank Bisignano during their recent earnings call this week stating “a pipeline of other embedded finance opportunities…” 🚀

• FIS (NYSE: FIS) announced it is one of the first providers in the fintech industry certified to enable send capabilities for credit transfers in the Federal Reserve’s FedNow® instant payment service. “FIS now supports the full payments lifecycle in FedNow, providing consumers and commercial borrowers with a holistic, human-centric instant payments experience.”

• Jack Henry (Nasdaq: JKHY) and Moov implement Visa Direct to offer real-time account-to-account money movement on the Visa Direct network via Jack Henry Rapid Transfers (offered only through financial institutions).  Definitely seeing more traction in the A2A / Pay-by-Bank space….

• Speaking of A2A / Pay-by-Bank…  Trustly partners with Spreedly to “provide merchants with full-service access to Pay by Bank to drive improved conversion rates and optimize payment efficiency across expanded regional and global markets.“

• Holy smokes – that didn’t take long!!!!  Santander Bank, N.A. (FDIC 29950; total assets $103B) announced that their direct digital bank, Openbank (just launched in 4Q2024), has hit $2B in total deposits as of Jan 29, 2025. WOW!!! 💥

• More flexing! 💪  The Clearing House reported that the RTP® network has surpassed 1 billion transactions and also set a new single-day records on Jan. 31 “for payments volume (1,592,419 transactions) and value ($1.44 billion).”   NICE!!!

• Ready for round two…  GM Financial announced they have again submitted an application to the Federal Deposit Insurance Corporation and Utah Department of Financial Institutions for GM Financial Bank, a proposed Utah-chartered industrial bank.  Banking Dive has a good summary including history of GM’s ILC bank charter aspirations.

• Highnote announced the launch of a new consumer credit card program with Fasten Rewards.  The Fasten™ Rewards Visa® Card program is an open loop custom card solution that “rewards consumers for auto loan or lease payments while increasing dealership loyalty, engagement, and sales velocity.”

• Zest AI and MeridianLink (NYSE: MLNK) continue to add to their longer term partnership as Zest AI now provides access to their AI-powered fraud detection tool (Zest Protect) to MeridianLink’s 2,000+ customers to identify and prevent “fraudulent activity during the application process.”

• Raiz Federal Credit Union (charter 1409; total assets $990M) partners with MANTL to offer a bilingual omnichannel account opening / deposit origination experience seamlessly integrated with their Fiserv DNA Core.

• The Penalty Box headline this week goes out to Brinks Global Services USA, Inc. (yes – the armored car company)…  FinCEN announced a $37M civil money penalty (OUCH) against Brinks as FinCEN determined that Brinks operated as a “money services business” (MSB) through the expanded definition of “money transmitter” and subject to BSA / AML compliance yet failed to file a single SAR. 
  • "…the violations that FinCEN identified were numerous, substantial in aggregate value of the currency shipped, and occurred over an extended period. Brink’s failed to register as an MSB despite conducting business as a money transmitter, and furthermore failed to implement an AML program, conduct an appropriate risk assessment of its products lines, and to comply with the recordkeeping and reporting requirements under the BSA for approximately a two-year period, leaving the US financial system vulnerable to illicit actors.” 😬

• More personnel moves:
  • nCino promotes Sean Desmond to President and CEO.
  • Happy Money hires Gaurav Agarwal as Chief Credit Officer.
  • Lithic welcomes Robin Gandhi as Chief Product Officer.
  • BMG Money names Victor Loyola as its new Chief Risk Officer.
  • NCR Voyix announces James Kelly as CEO and President.

• Notable FinTech funding for the week:
  • Closinglock (fraud prevention for RE transactions) raised $34M in Series B funding round.
  • Wisetack (consumer installment loan solutions for home services) raised $25M in growth capital.
  • Lynx (healthcare payments and administration platform) raised $27M in Series A oversubscribed round.

 
 
Random Uncle Sean stuff:

• 🏈 Walking into the weekend excited about the Super Bowl - but don’t forget that next Friday is Valentine’s Day ♥️ (you’re welcome)!!!  Keep an eye out for this Super Bowl commercial from Ramp featuring Saquon Barkley.
• Recipe time!!!! 😋  I really don’t like sliced tomatoes, but I do like pico de gallo, hot sauce, tomato soup, ketchup, and pizza / spaghetti sauce…  So I tried a new recipe that involved slow roasted tomatoes and it was AWESOME!  It’s a long cook at 7 hours, but worth it – and your house will smell like pizza!  Here are the details:
  • 7 Roma tomatoes sliced in half longways and placed open side up in a roasting pan (definitely use foil or something in the bottom to help with cleanup) spaced at least a few inches apart to help with airflow.
  • ¼ cup olive oil (I used Avocado oil)
  • 1 tsp coarse ground black pepper
  • 1 tsp garlic salt
  • 1 tsp oregano (or you can use thyme as a substitute)
  • 1 tsp basil
  • Mix ingredients well and cover the tops of the tomatoes (open side facing up).  Slow roast at 200 degrees for roughly 7 hours (looking for the tomatoes to shrink up about 2/3rds).  When you take them out, cover with some mozzarella cheese and enjoy (I added a dash of Uncle Chris steak seasoning on top of the cheese for good measure)! 
• And finally (you can stop scrolling down now 😊) - here are the Dad / Bad Jokes for the week!!!
  • You think your job is bad, electricians have to strip to make ends meet… 😮😅
  • Some very exciting news to share – I got a raise today!!!!!  It was in medication dosage from my doctor, but still a raise nonetheless! 🙃
  • Our CTO had to drive 50 miles through ice and snow to pick up a computer part.  It was a hard drive…. 🙄
  • Never make snow angels in a dog park… 🐶
  • The swordfish has few predators to worry about in the wild…  Except for the penfish, which is said to be even mightier… 🤔🤣

 
 
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 [email protected] | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | [email protected] #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!!!
 
Don’t forget to sign up here to have the Uncle Sean Update delivered straight to your inbox every week!!!  Here is the Uncle Sean Update for 1/31/25:
 

• It’s Fed Week!!!  As widely expected, nothing happened – LOL!  The FOMC voted to maintain the target range for the federal funds rate at 4.25% - 4.50% and will continue to reduce its holdings of Treasury securities ($25B per month) as well as agency debt and agency mortgage-backed securities ($35B per month).  More info for the Fed Geeks like me 🤓:
  • Chairman Powell reiterated their wait and see approach as “the Committee will assess incoming data, the evolving outlook, and the balance of risks. We are not on any preset course.”  Additionally stating, “With our policy stance significantly less restrictive than it had been, and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance.”
  • During the Press Conference Q&A, Chairman Powell mentioned there is “probably some elevated uncertainty” related to the new administration policy shifts and what the resulting implications for the economy will be (specifically mentioning tariffs, immigration, fiscal policy, and regulatory policy).
    • Here are the links to Chairman Powell’s Press Conference Transcript (25 pages) and video (49 minutes).

 

• And more economic data late this week as the BEA reports GDP (first of 3 estimates anyway) came in at 2.3% for the 4th quarter driven in large part by consumer spending.  This comes in slightly below estimates and follows growth of 3.1% in the 3rd quarter.  Full year Real GDP for 2024 stands at 2.8% versus 2.9% for 2023.
  • Meanwhile, the BEA also reported the PCE price index at 2.6% with Core PCE coming in at 2.8% - both in line with Dow Jones estimates.  CNBC has a pretty good summary.

 

• 💪 Nacha flex – ACH payment volume and value reached across-the-board gains for 2024 with huge growth in Same Day ACH.  Per the release:
  • Overall, ACH Network payment volume rose 6.7% from 2023 to 2024, to 33.6 billion payments in 2024. The value of those payments was $86.2 trillion, an increase of 7.6%.
  • Same Day ACH payment volume topped the 1 billion mark for the first time ever, with more than 1.2 billion payments for the year. The value of those payments was $3.2 trillion. From 2023 to 2024, Same Day ACH volume soared 45.3%, more than double the growth rate from 2022 to 2023. 🚀

 

• 👀 Looks like T-Mobile Money is switching partner banks from Customers Bank to Coastal Community Bank beginning April 1, 2025.
  • Recall Dec 2023 where BMTX Vibe (student banking) split from Customers bank as a sponsor bank to First Carolina Bank who ultimately acquired BMTX in Oct 2024.  However, the T-Mobile Money accounts have remained with Customers Bank as the sponsor – at least until now.  Timing may be of interest as I believe the First Carolina Bank acquisition of BMTX is set to close during 1Q2025.
    • Ah – I love BaaS Memory Lane! 😊

 

• Speaking of BaaS…  Credit to Jason Mikula for breaking the news that Solid (another BaaS middleware platform) is allegedly shutting down.  Be sure to subscribe to Jason’s newsletter, Fintech Business Weekly – always a good read.

 

• Castellum.AI (AML/KYC screening and monitoring solution) partners with Hummingbird.  “This collaboration enables Hummingbird users to instantly access Castellum.AI’s enriched data, which covers over 200,000 sources and every single country and territory in the world.” 

 

• Abrigo acquires Integrated Financial Solutions, the provider of IFSLeaseWorks, a leader in end-to-end lease and loan origination and administration automation.  This is “the latest in a series of strategic investments by Abrigo to help financial institutions gain efficiency through automation in the front and back office.”

 

• Wow – there was a lot going on with Credit Unions this week:
  • Alliant Credit Union (Charter 67955; total assets $20.3B) selects Backbase to enhance its digital member experience through Backbase’s Engagement Banking Platform.
  • Wings Financial Credit Union (Charter 68601; total assets $9.3B) goes live on Finzly's ISO 20022-native Fedwire platform, and “completed in just four months.”
  • Post Office Employees’  Credit Union (Charter 63069; total assets $50M) selects Sharetec for core banking upgrade.
  • ELGA Credit Union (Charter 61797; total assets $1.5B) has partnered with Tyfone – particularly Tyfone’s nFinia® Digital Banking Platform for retail and commercial account holders.
  • Larky and Trellance have partnered together bringing a “direct integration of Trellance’s powerful data analytics platform into Larky’s nudge® platform” utilizing AI-driven data insights for hyper-targeted member engagement via location-based push notifications.
  • ModernFi CUSO deposit network now includes over 40 credit unions and the ability to offer members access to $10 million of NCUA insurance* through a single account. 👍

 

• 👉 And of course I have to mention my friends at Acceleron Bank, In Formation with their newly released Ultimate Guide to ISO 20022: The Universal Adapter for community financial institutions as a user-friendly resource containing “practical insights, expert tips, and implementation strategies specifically for community bankers.”  Thank y’all for the work you do supporting community banks!!!! ❤️😊

 

• Digital River online payment processor is laying off all employees and will shut down operations.

 

• Elon Musk’s X payment solution (X Money) continues to move forward towards a potential launch by partnered with Visa Direct to allow “US X Money Account users to fund and transfer money in real-time with their debit card.”

 

• And finally, in the penalty box this week:
  • The New York AG fined Netspend approximately $1.1M as part of a settlement including $735K in restitution and $350K in penalties to the state.
  • The CFPB has ordered Wise to pay approximately $2.5M for “illegal remittance practices.” Wise to pay $450K in redress to harmed consumers and pay a $2.025M civil money penalty.
  • The FDIC published a Consent Order for Bank of Vici, a $33M bank in Oklahoma, for credit losses / capital maintenance, and appropriate staffing including AML/CFT Officer and IT Manager. 
    • 💥 Special thanks and credit to Sarah Beth Felix for pointing out the intriguing nature of the AML/CFT section as this appears to (finally) clearly state the AML Officer “shall report directly to the Board”… and “Have sufficient executive authority”… and be included in succession planning as an executive… – which should be a harbinger for all banks regarding regulatory expectations (yes, even for the smallest of FI’s).

 

• Some personnel moves:
  • Upgrade selects Jeffrey Meiler as Chief Operating Officer.
  • Nymbus appoints Ed Gross as Chief Product Officer.
  • Temenos names Sairam Rangachari as Chief Product Officer.

 

• Notable FinTech funding for the week:
  • BMG Money (loans and financial tools for employees and retirees) closed a $150M funding facility.
  • Foyer (savings app for homebuyers) raised $6.2M Seed Round.

 
 
Random Uncle Sean stuff:

• Well, well, well…  It only took what felt like a year to wrap up January, but here we are!  Looking forward to Groundhog Day this weekend (Sunday, Feb 2) – certainly hoping that our Nation’s favorite meteorological rodent (with all due respect, of course) does not see his shadow and predicts an early spring!!! 
• You made it – here are the Dad / Bad Jokes for the week!!!
  • Fun Fact (IYKYK) – Patrick Mahomes wears the number 15 because that’s how many yards you get penalized if you touch him! 🤐😂  Apologies to my KC fans out there; and credit to NFL Memes for that one!
  • If you eat the entire cake without cutting it, you technically only had one piece…  Follow me for more nutritional guidance! 🤔😜
  • A charcuterie board is basically the adult version of Lunchables – but you get to swap out the Capri Sun for as much wine as you want! 🍷😊
  • With the way those egg prices are headed, we may be painting potatoes this Easter! 🥚🐰🥔
  • If like me, you’ve ever been accused of being ‘born in a barn’ and want to talk about it, remember…….  My door is always open.  😂🤣

 
 
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 [email protected] | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | [email protected] #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!!!
 
Although the recent snow pics from Houston, New Orleans, and Florida were extremely fun to see – I have to admit that my favorite part of winter (other than Christmas, of course) is when it’s over! 😆  Bring on the sunscreen, frozen slushy drinks, and the smell of freshly cut grass!🌴🌞  Here is the Uncle Sean Update for 1/24/25:
 

• 💥 Whew – Bankers Helping Bankers (BHB) has been B-U-S-Y!!!  This week the BHB Fund announced its investment in Neural Payments – a banktech platform providing community banks with tools to offer real-time P2P payments, disbursements, and scalable fraud protection to their customers.

 

• Plenty of eyes looking towards the FOMC meeting (particularly the press conference Q&A) next week, even though markets are signaling essentially no chance that the Fed will lower rates (currently between 4.25%-4.5%)…

 

• 👉 New administration focus is already being felt as:
  • The FDIC released the Statement from Acting Chairman Travis Hill laying out the FDIC focus over the coming weeks and months.
  • The NCUA also released a statement from Kyle S. Hauptman as incoming Chairman of the NCUA outlining his priorities.

 

• 👀 And we’re off!!!  We have the first CU acquisition of a bank this year as Frontwave Credit Union (Charter 68494; total assets $1.5B) announced an agreement to acquire Community Valley Bank (FDIC 58500; total assets $316M).
  • This is the 1st announced CU acquisition of a bank in 2025.  Compares to the record of 22 for 2024, 11 in 2023, 16 in 2022, 13 in 2021, 7 in 2020, and 16 in 2019.  Source: FedFis Bank M&A data.

 

• Another first for 2025 (albeit unfortunate)…  Late last week we had our first bank failure of 2025.  Pulaski Savings Bank (FDIC 28611; total assets $49.5M) in IL was closed due to “suspected fraud.”  Here is the FedFis Bank Failure Alert if you are looking for more information.

 

• Idaho Central Credit Union (Charter 63194; total assets $11.7B) announced a strategic investment in ModernFi CUSO and joins Modern Fi's innovative deposit network.
  • ModernFi had partnered with Members Development Company last year to launch the first deposit network dedicated to credit unions. 👍

 

• Ramp (corporate card and expense management platform) continues to expand (I was going to say, “ramp up” – but that was a little too cheesy even for me LOL 😊) their product set by announcing the launch of Ramp Treasury earning 2.5% cash rewards in a Ramp Business deposit account (First Internet Bank of Indiana); or invest excess cash in a money market fund (FUGXX) currently earning up to 4.38% via the Ramp Investment Account (facilitated by Apex Clearing Corporation). Nice!!!! 🚀

 

• CardWorks, and its wholly-owned bank subsidiary, Merrick Bank (FDIC 34519; total assets $5.9B) to acquire Ally's credit card business including a portfolio of $2.3 billion in credit card receivables with 1.3 million active cardholders as of Dec. 31, 2024.
  • 🤓 Somewhat of an ironic twist of fate….  If you recall, Ally had announced a deal to acquire CardWorks back in Feb 2020 for $2.65B. However, the agreement was mutually terminated with the onset of the pandemic.

 

• Q2 (NYSE: QTWO) announced a new partnership with Alloy to deliver a joint fraud monitoring solution for Q2 Digital Banking customers powered by Alloy’s centralized identity decision engine for fraud detection and prevention.

 

• Synchrony (NYSE: SYF) announced they have entered into a multi-year extension of its 30-year strategic credit card relationship with Sam's Club.  🤙 30 years – WOW!!!

 

• Texas Security Bank (FDIC 58739; total assets $1.2B) partners with ATTUNE to enhance its business deposit origination and mortgage origination processes.

 

• Some Personnel moves this week:
  • Fiserv (NYSE: FI) appoints Michael P. Lyons as President and CEO-Elect effective January 27, 2025.  Lyons is set to replace Frank Bisignano on June 30, 2025, or upon an earlier confirmation by the U.S. Senate as the Commissioner, Social Security Administration.
  • Nav welcomes Grace Liu as Chief Financial Officer.
  • ACI Worldwide (NASDAQ: ACIW) names Philip Bruno as Chief Strategy and Growth Officer
  • TD Bank Group (TSX: TD) promotes Jacqueline (Jackie) Sanjuas as Global Head of Financial Crime Risk Management replacing the exiting Herb Mazariegos.  She will also continue serving as U.S. Bank Secrecy Act (BSA) Officer.
  • And last but not least – a huge congratulations to IBAT’s Mr. Bill Briggs for being nominated as Deputy Administrator of the Small Business Administration – an arena that he is more than just a little familiar with!  Congrats, Bill; and best of luck!!! 🎉

 

• Notable FinTech funding for the week:
  • Highnote (modern card issuance and program management platform) raised $90M in Series B funding.
  • Clutch (modern loan and deposit onboarding for credit unions) raised $65M in Series B round.
  • Method (consumer permissioned financial connectivity) raised $42M in Series B funding round.

 
 
Random Uncle Sean stuff:

• 🏈 WOW – that Ohio State and Notre Dame college football National Championship game was exciting!  After a dominant start by Ohio State, they had to hold off a rally by a scrappy Notre Dame team in the second half that would come within a one possession game at one point.  But the Buckeyes were able to pull away late and seal the deal. 🏆
• And more football!!! 🏈🏈 In the NFL, we are down to an action packed Sunday afternoon with the Buffalo Bills vs Kansas City Chiefs and Washington Commanders vs Philadelphia Eagles to see who gets to play in the Super Bowl on Feb 9.
• Here we go!!!!  Time to wrap it up with some Dad / Bad Jokes!!!
  • I recently cured my fear of flying…  Riding 22 hours on a Greyhound Bus will do that!! 🙄😜
  • As we age, we all know that mirrors don’t lie…  I’m just grateful they don’t laugh!!! 😬😅
  • If you think about it, the entire salad dressing industry exists because people really don’t like the taste of salad! 🤔🤠
  • Tough work environment for Snow White’s dwarfs..  I heard 6 out of 7 of them were not Happy…. 😂🤣

 
 
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 [email protected] | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | [email protected] #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.
 

​1/17/25 - Pulaski Savings Bank of Chicago, IL (FDIC 28611; total assets $49.5M; total deposits $42.7M; equity capital $5M as of the 9/30/24 call report) was closed by the Illinois Department of Financial and Professional Regulation due to “suspected fraud.”

• Millennium Bank of Des Plaines, IL (FDIC 58348; total assets $597M as of 9/30/24 call report) to assume all deposits at the time of closing for a 4.61% premium; and will purchase approximately $45M of the bank’s assets (slightly less than the bank’s $49.5M in total tangible assets).
• The FDIC preliminarily estimates that the failure will cost its Deposit Insurance Fund (DIF) about $28.5 million.
• Source - FDIC: Millennium Bank assumes all deposits of Pulaski Savings Bank

Additional FedFis insights:

• Pulaski Savings Bank had a FedFis Rating© of 2.74 (on a 1.00 to 5.00 scale) placing them in the bottom 27% of all banks as of 3Q2024.  Not a terrible rating, but this is suspected fraud so not relevant at all.  The FDIC estimated cost to the DIF of $28.5M is HUGE considering only $42.7M in deposits (meaning this fraud was likely substantial in nature).
• Keep in mind that very small banks (Pulaski was in the bottom 4.5% of all banks with only $49.5M total assets) can fail quickly, so ratings may not always be an effective predictive measure of failure for those extremely small institutions.  And again, since this was suspected fraud, the rating is not relevant (FedFis Rating is not designed to predict fraud).
• Certainly worth noting that on 1/7/25 (just 10 days prior to the failure of Pulaski Savings Bank), the existing merger agreement between Mutual Federal Bancorp, Inc. (OTC: MFDB) and Pulaski Savings Bank was abruptly terminated with no notice as to why.  Certainly leads me to believe that something material showed up in the due diligence.
• Pulaski Savings Bank is the first bank failure of 2025.

 
For more information on FedFis Bank Ratings and market insights, contact the FedFis Sales Team at 512-960-0911 | [email protected].
 
Sean Mayo
Sr. VP, US Financial Institutions Group

​Happy Friday!!!
 
Next Monday is a busy day as we observe Martin Luther King Jr. Day as a federal holiday so almost all financial institutions, the stock market, and most schools will be closed.  It’s also Inauguration Day as well as the College Football National Championship game that evening.  But first (chronologically anyway) 🤠,  here is the Uncle Sean Update for 1/17/25:

• 👀 HUGE shout-out to my friends at Integris as a Bankers Helping Bankers (BHB) Premier Sponsor!!! 🎉  Sponsorships like this enable BHB to “continue to provide free, high-value resources and events for bankers.”  This is awesome as the Integris Team is nothing short of amazing!!!🚀
  • Integris has a long history of supporting community banks with managed IT services (including cybersecurity, consulting, cloud services, and network connectivity) through their Financial Institution Division.
    • Also worth noting is their recent announcement of their legal practice division specializing in servicing the unique IT needs (including compliance and cybersecurity) for Law Firms.  
      • I found this particularly interesting as I have been seeing more and more banks specializing in banking for Law Firms; and a growing fintech presence for the same specific needs (escrow, trust, and IOLTA bank accounts from a fintech and sponsor bank perspective).  Great cross-functionality from Integris!💥
  • Be sure to check them out at integrisit.com and tell them Uncle Sean sent you! 🤠

• Fresh off the heels of a smoking hot jobs report last week, we get a small bit of “inflationary reprieve” (hey – I’ll take it 😊) as the BLS Dec CPI came in at 2.9% (as expected, last month was 2.7%) with the increase driven in large part by energy (gas prices surged 4.4% for the month).  Core CPI, that excludes volatile food and energy, came in at 3.2% (expectation was 3.3%) and marks the first decrease in Core CPI since July 2024.  I like this CNBC summary – particularly the graphs.
  • Meanwhile,  the Federal Reserve released their Beige Book - January 2025 showing flat to moderate price increases, steady to slight employment increases, and overall economic activity up slightly to moderately driven by strong holiday sales and consumer spending.  Agriculture remained weak overall (weather conditions and avian flu).  Most districts have an optimistic outlook for 2025; but some concerns remain surrounding changes in immigration and tariff policy that could potentially have a negative impact on the economy.

• MONEY, MONEY, MONEY!!! 💰💰💰 Many equity analysts have covered this in great detail so I’ll be brief..  The big banks kicked off earnings season with exceptionally strong profits.  JPM posted the largest ever annual profit of any US bank of $58.5 billion (CHA-CHING). Citi notched a Q4 profit of $2.9B (versus a $1.8B loss in Q42023).  Q4 profits at GS and BofA doubled over 4Q2023; and Wells Fargo Q4 profit was up 47% over 4Q2023.
  • The sky may not be falling after all!! 🤠

• Wealth Access announced an integration with Q2's Digital Banking Platform via the Q2 Partner Accelerator Program.  This allows FIs using Q2’s Digital Banking solutions to rapidly deploy Wealh Access’ deep insights to fuel hyper-personalized banking interactions.

• NBKC Bank (FDIC 35014; total assets $1.1B) selects NCR Atleos Allpoint Network to provide “surcharge-free access to an additional 55,000 ATMs worldwide, in addition to the other ATMs they already have access to, in trusted retail locations across the country where customers already live and shop.”

• Sage Capital Bank (FDIC 25621; total assets $665M) selects Apiture digital banking platform to power the banks online and mobile banking.

• Gate City Bank (FDIC 27774; total assets $3.7B) selects Lama AI for GenAI-powered origination platform for business loans.

• Rellevate (fintech digital banking and payments platform with over 3 million account holders) partners with Highnote for enhanced funding and payment options including: faster transaction speeds; enhanced security; and expanded payment options.

• Indiana Members Credit Union (Charter 68259; total assets $3.3B) selects Lumin Digital for digital banking.

• 👉 Trakker Apps has launched their BaaS fintech platform which delivers real-time integration of banking and accounting in a single, cloud-based system.
  • Most interesting to me (per their website) is their focus on “the unique accounting needs of business professionals, attorneys, and landlords…”  Particularly “instant access to customer/client balances in your Escrow, Trust and IOLTA bank accounts.”  Be sure to visit them at trakkerapps.com.
    • Note Uncle Sean’s comments above regarding Integris Legal practice division and the growing fintech presence solving for specialty banking needs of law firms…  🤔😊

• WaFd, Inc. (Nasdaq: WAFD), parent company of Washington Federal Bank (FDIC 28088; total assets $28B), announced a significant shift in their business model by exiting the single-family mortgage business . “After over 100 years of making home loans, we are exiting the single-family mortgage lending market…”  

• eToro (retail trading platform and Robinhood competitor), as reported by the Financial Time, has allegedly submitted confidential filings to the Securities and Exchange Commission (SEC) for an initial public offering (IPO) targeting a valuation of $5B.

• 😯 Tough week in the enforcement arena – literally a “regulatory alphabet soup” of penalties…:
  • The CFPB announced they are suing Capital One for allegedly “cheating millions of consumers out of more than $2 billion in interest.”
  • The OCC announced enforcement actions and civil money penalty against three former senior executives of Wells Fargo Bank, N.A.  The fines to the three individuals are substantial at $10M, $7M, and $1.5M.  Oof!!! 🤐
  • The DOJ announced that American Express has agreed to pay $108.7M to the DOJ to settle allegations of deceptive marketing related to credit card and wire transfer products; and by entering “dummy” EINs in the credit card accounts of its affiliate bank.
  • The SEC announced that Robinhood has agreed to pay $45M in civil penalties to settle SEC charges of violating more than 10 securities law provisions.
  • Block to pay fines of $210M - $255M to federal and state regulators related to deficiencies in its oversight of Cash App and to compensate users who became victims of fraud.  Specifically:
    • The CSBS issued an $80M penalty for BSA/AML violations related to Cash App P2P platform.
    • The CFPB ordered Block to refund customers $75M-$120M and pay a $55M fine to the bureau's victims' relief fund. The CFPB claimed that Block had weak security protocols that put Cash App users at risk.

• Some personnel moves:
  • NCR Atleos appoints Andy Wamser as its new Chief Financial Officer.
  • FIntegrate Technology welcomes Linda Lockhart Nello as Customer Success Manager.
  • Synctera hires Matias Pino as its first CFO.

• Notable FinTech funding for the week:
  • Brex (corporate card and spend management platform) picks up a two year. $235M revolving credit facility to accelerate card product growth.
  • Arva AI (AI-powered business verification / KYB solutions for banks and fintechs) raised $3M in seed funding.

 
 
Random Uncle Sean stuff:

• ❄️🥶 Holy Moly – get ready for round 2 as another strong arctic blast is on the way with the coldest low temps of the winter so far and dangerous windchill for much of the nation.  Who’s ready for summer??? 🌞
• It’s set… 🏈  The College Football Playoff National Championship  game is scheduled for this Monday, Jan 20th, featuring Ohio State vs. Notre Dame.
• The FDA has banned the use of Red Dye #3….  Hmmm…  Growing up in the 70’s and 80’s, I’m pretty sure I have ingested about 5 billion ounces of it… 🤷‍♂️
• Alrighty then – let’s close this out with some Dad / Bad Jokes!!!
  • How did the Pharaohs pay for their funerals…???  Cryptocurrency… 🤓😜
  • In a packed elevator, everyone is silent.  My stomach: I will now demonstrate the mating call of a whale. 😅
  • 3,025 years from now, life will either be really good or really bad…  It’s 5050… 🙄 (classic dad joke groans all around on that one)
  • If I had a dollar for every time algebra has helped me in real life, I’d have X dollars…. 😎
  • And last but not least - Is it just me or does the entire month of January feel like one really long string of Monday’s…??? 😬🤠

 
 
Have a GREAT weekend and please stay safe (and warm)!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at [email protected] | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | [email protected] #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!!!
 
🙏 Tough week as our hearts and prayers are with those greatly impacted by the California wildfires.  Here is a pretty good list of resources to help if you so choose (including local to LA such as LAFD Foundation, LA Regional Food Bank, and Pasadena Humane for pet supplies) - CA wildfires - how to help.  Here is the Uncle Sean Update for 1/10/25:
 

• 💥 I am very excited to report the announcement from Bankers Helping Bankers (BHB) regarding the appointment of Matthew Smith as its new CEO!!! 🎉  Excellent – congrats Matthew Smith!!!  Can’t wait to see what BHB can accomplish next! 🤠🚀🤘

 

• A quick economic update as the BLS Dec Jobs Report came in SMOKING HOT 🔥 at +256,000 (+155,000 expected, +212,000 revised total for Nov) and unemployment rate dropped to 4.1% (4.2% expected, 4.2% previously)…  CNBC has a ​good summary.  For the prior months revisions (down 15K for Nov), you can check that out here noting that there are always 3 monthly revisions.
  • Uncle Sean goes off the rails here a little bit with some unsolicited commentary, so feel free to scroll on down as I geek out. 🤓
    • Certainly worth noting the recent movement in longer dated treasury yields…  While the FOMC has lowered rates 100 bps since this summer from 5.5% to 4.5%, the 10-yr treasury yield has increased 30% from Sept lows to 4.765%.  The 30-yr treasury yield has increased 25% from Sept lows to 4.96%...
      • Uncle Sean’s take - While the rate curve has uninverted (at least for everything beyond 1 yr), the long end yield has increased substantially which continues to impact mortgage rates putting downward pressure on the housing market; and unrealized loss pressure on banks holding longer dated treasuries.

 

• 💪 DCI flexes their muscles by announcing a record-breaking 2024 year in core conversion sales stating with “16 new core processing contracts and two new Fintech contracts, along with six existing customers planning acquisitions of other financial institutions, its conversion calendar for 2025 is already nearly filled.”  Great job to all at DCI!!! 🚀
  • I must admit that I am not surprised at all by this – good people over there at DCI doing great work for community banks. ❤️

 

• 👀 Integris released their 2025 Annual Bank IT Spend Report (you can download it for free here - https://integrisit.com/resources/us-bank-it-spend-2025-report/) that also has comparisons to prior year results. This is a great report and super easy to read – nice work Cal Roberson and the Integris Team 😊!!!  Here are a few key points:
  • No bank surveyed said they would be cutting IT spend with 70% expecting to increase spend by 10-19% YoY (but surprisingly, 73% of bank executives surveyed could not accurately estimate their annual IT spend).
  • 98% of banks cite “fear of cyberbreach” among the top three drivers of current IT spend (with 43% of executives listing cybersecurity as their #1 concern).
  • 42% of banks cite data analytics as a top priority (noting that zero ranked it as a top concern last year) followed closely by digital transformation at 40%.

 

• 👉 And more flexing…  The Clearing House reported Skyrocketing RTP® Network Growth Sets Stage for 2025.  Noting:
  • YoY payment volume is up 38% to 343M transactions while payment value jumped 94% to $246B.
  • 4Q2024 logged 98M transactions valued at $80B representing 12% volume growth and 16% value growth over 3Q2024.
  • The number of participating banks and credit unions on the RTP network grew 67% YoY as more institutions (particularly smaller FIs) see instant payments as a positive for customer retention.

 

• Lumin Digital announced a partnership with FINBOA to enable Lumin’s customer bas of FIs to “allow their members to self-serve and expedite payment disputes on their accounts for more accurate and efficient resolutions.”

 

• Tradition Capital Bank (FDIC 58057; total assets $2.7B) selects CorServ to launch “an innovative credit card program for commercial, small business, nonprofit, and consumer clients.”
  • If you haven’t noticed, CorServ has been on a roll lately helping many banks and fintech companies launch their own CC programs. 👍

 

• Paychex (Nasdaq: PAYX) announced an agreement to acquire Paycor HCM, Inc. (Nasdaq: PYCR) for $4.1B in an all cash transaction.

 

• Core provider Automated Systems, Inc. (ASI), owned by Banyan Software, announced its acquisition of American Bank Systems (ABS) - a compliance-focused software solution for community banks.

 

• Hey – some good news from the CFPB!!!  Highly anticipated and much needed...  This week the CFPB approved Financial Data Exchange, Inc. (FDX) as the standard setting body for open banking (i.e. 1033) for an initial period of five years. The CFPB continues to evaluate other applications for recognition.

 

• Also this week, the CFPB finalized a rule to remove medical debt from credit reports, but was immediately met with lawsuits from the Consumer Data Industry Association (CDIA) and the Cornerstone Credit Union League as well as a second suit from ACA International, claiming the CFPB has exceeded its authority in issuing the rule.

 

• 🙌🎉 And more good news as the CSBS released the fourth quarter 2024 CSBS Community Bank Sentiment Index (CBSI) showing a surge of 17 points over 3Q2024 to 127 – its highest mark since the survey began in 2019.  In the open-ended comments, many community bankers said they are optimistic that regulatory burdens for smaller institutions will improve.
  • Take a look at the increased sentiment regarding Regulatory Burden – sentiment improved 80 points over last quarter to 100!  WOWZA!!!!

 

• Some personnel moves:
  • R&T Deposit Solutions announced leadership transition and promotes Susan Cosgrove as CEO and Chair succeeding Joe Jerkovich as he retires.
  • Finastra welcomes Chris Walters as CEO as Simon Paris hands over the reins following almost a decade of leadership at Finastra.
  • Onbe appointed Sayid Shabeer as its new Chief Product Officer.
  • DailyPay named Nelson Chai as Executive Chair.
  • ICBA has hired Peter Nelson as Sr Executive VP of Member Engagement.

 

• Notable FinTech funding for the week:
  • Anatomy Financial (AI-powered financial automation in healthcare) raised $19M in Series A funding round.
  • Onpay (SMB payroll, HR, and benefits platform) raised $63M in Series B funding.

 
 
Random Uncle Sean stuff:

• 🏈🏈🏈 Can’t wait to watch the #5 Texas Longhorns take on the #8 Ohio State Buckeyes tonight!!!!  Winner will face Notre Dame in the National Championship game on Jan 20.
• We lucked out on the weather situation at our house in East Texas.  Ended up with just rain with no ice or snow – which is a blessing because we received a little over 1 ½ inches of rain.  Still slightly miserable with 33 degrees and rain, but thankful for no snow or ice! WHEW!!!
• You made it!!!  Here are the Dad / Bad Jokes for this week 😊:
  • Sticking with my New Years Resolution to stay more active….  If a cookie falls on the ground and you pick it up….  That counts as a squat, right??? 😎
  • Hmmm…  Going to the gym gives you energy but you need energy to go to the gym….  Sounds like a pyramid scheme to me. 🤣
  • I’m not saying I’m old, but….  I am now at the age where “picking up a hottie at the club” means buying a rotisserie chicken at Sam's! 🍗🤠
  • The good news is I’ve made it to the Golden Years…  The bad news is there aint no gold! 🤷‍♂️
  • When I was younger I asked my math teacher if we would ever use Algebra in real life…  She said, “You won’t, but a few of the smart kids might!”  😲😅

 
 
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 [email protected] | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | [email protected] #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!!!
 
Hoping everyone had a wonderful Holiday season!  News was extremely light as expected the last few weeks, so this will be very brief as we kick off 2025 🎉.  Here is the Uncle Sean Update for 1/3/25:
 

• Sneak peek into next week 😉….  Keep an eye out for big announcements from Bankers Helping Bankers; and be sure to tune into the FinTech Cowboys episode next week that features one of the kindest and sincerest people in the industry (and a dang good executive bank analyst)!!! ❤️

 

• 👀 Over the Holiday’s, we had a few more CU acquisitions of a bank…  The magic number is now 22 for 2024… 
  • Late (at 5PM eastern) on Friday, Dec 20, Hanscom Federal Credit Union (charter 9095; total assets $1.8B) announced an agreement to acquire The Peoples Bank (FDIC 12885; total assets $300M).
  • Then on Monday of this week, Zeal Credit Union (charter 62426; total assets $839M) announced an agreement to acquire Gogebic Range Bank (FDIC 57192; total assets $147M).
    • As stated above, the record of announced CU acquisitions of a bank is now at 22 for 2024 compared to 11 in 2023, 16 in 2022, 13 in 2021, 7 in 2020, and 16 in 2019 (source: FedFis).
      • 🤔 Just a reminder that not all of these deals get completed as Atlanta Postal CU (charter 67389; total assets $2.4B) and Affinity Bank (FDIC 29510; total assets $879M) announced the mutual termination of their merger agreement after discussions with “applicable regulatory agencies.”

 

• Fiserv (NYSE: FI) announced a definitive agreement to  acquire Payfare Inc. (TSX:PAY) to enhance its embedded banking, lending and card management services.
  • This Payments Dive article is a reminder that Fiserv recently won the DoorDash business from Payfare.

 

• Tough news for CBW Bank (FDIC 13959; total assets $73.6M as of 9/30/24 call report) as the FDIC has issued a Civil Money Penalty (FDIC-22-0171k) (22 pages) in the amount of $20.45M for failing to maintain “an adequate Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) compliance program, which led to multiple incidents where Respondent repeatedly violated the Bank Secrecy Act (BSA)… Further, Respondent’s violations were part of a pattern of misconduct, and Respondent received financial gain or other benefit.”  Oof!!! 😯
  • I personally cannot recall a penalty of this material and devastating magnitude from the FDIC given CBW’s size and declining balance sheet ($23M in total equity as of 9/30/24 – source: FedFis)…  Naturally, CBW has no choice but to vigorously contest the penalty in court.
    • 👉 Be sure to follow the amazing Sarah Beth Felix on LinkedIn as she consistently provides amazing factual coverage of these orders (including this one) in an easy to read / understand format – an amazing resource for learning!!! 😊

 

• Infinant closed their $15M Series A funding round led by FINTOP Capital and partner JAM FINTOP BankTech, with participation from Raido Capital Partners, Woodforest Financial Group, and Bankers Helping Bankers. 
  • “With this round, Infinant will continue to expand their product offerings that include the Interlace Console for customer and account management, Settlement Ops for ledger and reconciliation management, Payments Hub that offers centralized payments for ACH, Wire and FedNow, and their Card Platform that includes card issuance and processing directly to Visa DPS.”  NICE!!!! 🚀

 
 
Random Uncle Sean stuff:

• ❄️🥶 Brrrr…  Be sure to bundle up as an Arctic blast is set to arrive this weekend and will cover the majority of the US.
• The College Football Playoff bracket 🏈 got a little bit clearer this week as #6 Penn State is set to face #7 Notre Dame (Jan 9) in the Orange Bowl; while #5 Texas faces #8 Ohio State (Jan 10) in the Cotton Bowl.  Winners advance to the National Championship game to be played on Jan 20.
• All right – let’s wrap it up with some terrible Holiday themed Dad / Bad Jokes 😊:
  • Scotch tape doesn’t taste anything like Scotch! 🤢😂
  • Day 1 of my New Years diet - I removed all of the bad food from the house….  It was delicious!!! 🌝
  • The classy term for box wine is “cardboardeaux.” 🍷😎 (be sure to hold that pinky out)
    • Is it just me, or is this Dry January thing already dragging on a bit? 🤠
  • If you think about it, lasagna is really just spaghetti flavored cake… 😅
  • And last but not least….  Snowmen hate ranch dressing because everyone rubs their noses in it! ☃️🤣

 
 
Have a GREAT weekend  - and please stay safe (and warm)!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at [email protected] | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | [email protected] #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!!!
 
Ho Ho Ho!!!! 🎅 This will officially be the last Uncle Sean Update for 2024 as I will be taking a few days off next week for Christmas (fortunately for me I still have several days left before I even begin Christmas shopping – LOL)!  So from our family to yours, we wish you all a very Merry Christmas and a Happy and Healthy New Year! 🎉🍾🙏  Here is the Uncle Sean Update for 12/20/24:
 

• 👀 Another exciting announcement from the Bankers Helping Bankers BHB Fund with an investment in Infinant – exciting times for sure!!! 🚀
  • Infinant is impressive (and highly critical in the BaaS space) in providing financial institutions the ability to “power their digital and embedded banking channels without core replacement” on a single platform under 100% bank-control to satisfy regulators. 💥  Love this!!!

 

• It’s Fed Week!!!  In line with market expectations, the FOMC voted to cut rates by 25 basis points bringing the federal funds rate down to 4.25% - 4.50% (down 100 basis points for the year since Sept); and continues the $60B per month balance sheet reduction in treasury and MBS.  But the mood was increasingly hawkish as the SEP (link provided below) reflects only 2 potential rate cuts in 2025, down from 4 as estimated in Sept with many inflationary data points remaining stubbornly sticky while labor markets and economic growth remain relatively strong.  More detail below if you want to get your “inner Fed freak on” like me 😊:
  • FOMC Summary of Economic Projections (SEP)
  • Chairman Powell’s Press Conference Transcript (27 pages) and video (about 53 minutes)

 

• Meanwhile, the BEA November PCE Report (the Fed’s preferred measure of inflation) gave a bit of good news, albeit extremely slight, in terms of tepid inflation…  The PCE price index rose at a 2.4% annual rate (up from 2.3% in Oct) while Core PCE increased at 2.8% annually (same as Oct), both slightly under expectations of 2.5% and 2.9% respectively.
  • But wait – there’s more!!!! The 3Q2024 GDP (third and final estimate) came in at 3.1% up from 3.0% in 2Q2024 showing a continued strong economy; and thus arming the FOMC with the weapon of patience related to future rate cuts.

 

• The OCC published their Semiannual Risk Perspective - Fall 2024 edition (40 pages).  Not really any huge surprises here (the report reflects data from June 30, 2024).  A few key points:
  • Fraud remains a top concern for the banking system
  • CRE (office and multifamily specifically as not all CRE is created equal) risks remain elevated
  • Cyberthreats continue to evolve in complexity targeting banks; and heightened exposures from key service providers and third parties
  • Other operational risk including “increasingly complex relationships with fintech firms” specifically mentioning BSA / AML a heightened compliance risk in those relationships

 

• Additionally, the OCC published their 2024 Annual Report to Congress echoing much of the same including fraud and “risks associated with third-party arrangements to deliver bank deposit products and services.”  Also specific mention of AI in financial services which is a hot topic these days.

 

• ❤️ Uncle Sean loves this too - Gesa Credit Union (Charter 68278; $5.6B in total assets) launched a direct digital brand called ValorFI Heroes offering high-yield savings, checking, and money market accounts, plus CDs.  Available to current and retired educators, first responders, healthcare workers, law enforcement, veterans, and their supporters – their niche is 501(c)(3) pledged donations with every swipe of the members debit card with proceeds supporting a specific hero group.  Very cool!!!
  • Per a LinkedIn post by Mr. Jeffery Kendall, this looks to be powered by Nymbus – although I am not at all surprised as they are very active in the Direct Digital Bank space (especially on the CU side). 👍
    • That’s right… Direct Digital Banks (err – CU’s) are not just for banks… 🤠

 

• Plug and Play (an innovative incubator type platform connecting banktech with banks) announced a new relationship with The Huntington National Bank (Nasdaq: HBAN; FDIC 6560; $200B total assets) as its newest collaborator in the fintech program – go to plugandplaytechcenter.com/industries/fintech for more info on Plug and Play’s fintech (banktech) innovation platform.

 

• Mesh Payments teams up with SoFi Bank as their new sponsor bank and Galileo (owned by SoFi) for payment processing. 👍
  • I can’t help but feel we will see much more of this SoFi / Galileo bundled service for what looks to be a regulatory compliant embedded finance solution in 2025 as SoFi Bank (FDIC 26881; $29B total assets – up 36% YoY and 42% YoY growth in Equity – source: FedFis) is certainly hitting their stride!

 

• 💪 Plinqit (white-label high-yield and automated savings to help FI’s grow deposits) announced record growth as High Yield Savings by Plinqit surpasses $2 Billion in deposits – HOLY SMOKES!!!!  Congrats to the entire Plinqit Team – keep up the good work!!!

 

• 🤔 Rumor mill (because Chime has not confirmed)…  As reported from Bloomberg, Chime has allegedly submitted a confidential filing for an IPO.
  • Recall last month where Klarna (BNPL) filed a confidential draft registration statement for proposed IPO, but Klarna actually confirmed the filing.

 

• The Federal Reserve Board issued a public enforcement action against Lineage Financial Network, the Bank Holding Company (BHC) for Lineage Bank (FDIC 6100; $214M), largely focused on the BHC maintaining the financial and managerial resources to serve as a “source of strength” to the Bank.
  • Worth noting that the Federal reserve PR mentions, “The Board's enforcement action against Lineage Financial Network is independent of the bankruptcy proceedings regarding Synapse Financial Technologies, Inc.”

 

• And of course it would not be a complete week without a CFPB lawsuit 😬 although this specific litigation was not entirely unexpected (especially if you followed some of the Zelle congressional hearings this past summer)…  This week the CFPB sues JPM. BofA, WF, and Early Warning Services (EWS), the operator of P2P payments platform Zelle, alleging the companies failed to protect consumers from fraud.
  • As an FYI…  JPMorgan, Bank of America and Wells Fargo are among the seven banks that own Zelle, along with PNC, U.S. Bank, Truist and Capital One.  The latter four do not appear to be mentioned in the suit.
    • Payments Dive has a really good summary including immediate pushback from EWS and JPM.  Yep – I expect this to get ugly! 😯

 

• Sixth Street has agreed to buy up to $4B of Affirm's BNPL loans over the next three years.  The transaction creates “the ability for Affirm to extend up to more than $20 billion in loans over the next three years as the company continues to scale its payment network.”  (bold emphasis added by Uncle Sean)  WOWZA!!!!

 

• Notable FinTech funding for the week:
  • Parafin (embedded finance infrastructure) raised $100M in Series C funding round at a $750M valuation.
  • Bureau (identity verification and fraud prevention platform) $30M in Series B round.
  • Leap Financial (Cross-border payments with AI-powered remittances) raised $3.5M in Seed round funding.

 
 
Random Uncle Sean stuff:

• Ole Saint Nick will need to keep an eye out for all those drones / “alien spaceships” (LOL) along the northeast seaboard! 🦌🛷🎅  Be careful Santa – tell Rudolph to go into stealth mode over Jersey, Alabama, and Texas as to not get shot at!!!! 🤣
• And more drone news…  Wing (a subsidiary of Google’s parent company, Alphabet) is expanding its drone delivery service to DoorDash customers in the DFW Metroplex enabling 50 area merchants to make drone deliveries to homes through the DoorDash app.
• 🏈 Congratulations to Travis Hunter for winning the 2024 Heisman Trophy!!!  He is the first full-time, two-way player to win the Heisman since the early 1960’s; and the first defensive player to win the Heisman since Michigan cornerback Charles Woodson in 1997.  By the way…  He is also an Academic All-American sporting a cumulative 3.798 GPA. 💥  Congratulations young man – nicely done!!!
  • Speaking of college football….  Here is the bowl season schedule including the playoff rounds – all in chronological order.
• We made it!!!!  Here are the Dad / Bad Jokes for the week:
  • For the English majors and grammar police (you know who you are 😊)…  If Santa and Mrs. Claus had a baby, what would it be???  A subordinate Claus, of course… 🙄🤣
  • What did Adam say the day before Christmas?  “It’s Christmas, Eve!!!”
    • Oh c’mon – that was a great one!!! 😆
  • If anyone is wondering what to get me for Christmas, tell them I wear a size 6 month vacation! 😉
  • Dear Santa, before I explain…  How much do you know already??? 😬🙃
  • This past year I was able to keep all of my New Years resolutions (tucked away in a journal on the bookshelf…). 🤷‍♂️
  • And last but not least, this one comes in from my friend, Mr. Cal Roberson with Integris (managed IT services - check out their financial institution industry expertise at integrisit.com/industries/financial/):
    • The Weight Watches website just asked me if I accept cookies…  Is that a trick question? 😅🍪  LOL – thanks, Cal!!!

 
 
Have a GREAT weekend; a very Merry Christmas & Happy New Year - and please stay safe!!!  See y’all next year!!! 🤠
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at [email protected] | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | [email protected] #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 the 13th 😬!!!
 
Oh, and Happy Birthday to Taylor Swift 🎶🎵!!!  So be sure to spread the word to all the Swifties out there (now that the Eras Tour is over) they can sign up here to have the Uncle Sean Update delivered straight to their inbox every week 🤠.  Here is the Uncle Sean Update for 12/13/24:
 

• 💥 Bankers Helping Bankers (BHB) is at it again!!!  I am super excited to report another powerhouse in the industry supporting and empowering community banks as LoanPro joins the BHB family!!!  I love this as the folks over at LoanPro are 100% genuinely good people (and they’re smart too)!!!  Definitely check out their scalable API-first lending and credit platform at loanpro.io – and tell them Uncle Sean sent you! 😊

 

• With plenty of eyes focused on the FOMC meeting next week, the latest inflation data is still sticky, but not surprising…  The BLS Nov CPI report ticked up slightly to 2.7% YoY after increasing 0.3% for the month, but in line with expectations.  Core CPI remained at 3.3% where it’s been for the last three months.  CNBC has a pretty good summary.

 

• The FDIC released their Quarterly Banking Profile - Third Quarter 2024 along with Chairman Gruenberg's presentation remarks.  Spoiler alert 😲 – if you’ve been following the “BHB Inside the Numbers” quarterly banking review, you already know this (and you knew it earlier than anyone else by 6 weeks)…  But here are the highlights anyway:
  • Positive increases in Net Interest Income and Net Interest Margin as loan yields exceeded the increase in cost of deposits.
  • Meager loan and deposit growth, but growth nonetheless.
  • Overall Asset Quality remains favorable with past due and nonaccrual rates at 1.54%, well below the pre-pandemic rate of 1.94%.  However – continuing to see some weakness in credit card, auto, CRE, and multifamily housing portfolios. 
  • The number of Problem Banks (defined by the FDIC as banks that have a CAMELS composite rating of “4” or “5”) increased by two banks to 68. Keeping in mind that the number of problem banks is well within the normal range for non-crisis periods of 1% - 2% of all banks.
    • 💪 Bragging time!!!!  Shout out to our FedFis Analyst Team as we are showing 68 banks with a FedFis Rating© of 3.80 or worse (on the same “1.00 is good and 5.00 is bad” scale) representing the bottom 1% of all banks.  Nice job if I do say so myself!!! 😊

 

• Upbound (Nasdaq: UPBD) to acquire Brigit (EWA, credit builder, and financial wellness platform) for $460M in a mixed deal of cash and stock comprised of $325 million payable at closing (75% in cash and 25% in Upbound shares); plus $75 million in deferred cash consideration over two years; and a potential earnout of up to $60 million in cash based on achievement of certain financial performance metrics.

 

• 👀 Gen Digital Inc. (NASDAQ: GEN) announced a definitive agreement to acquire MoneyLion Inc. (NYSE: ML) in a total transaction valued at approximately $105 per share, composed of $82 per share in cash payable at closing (about $1B) and additional potential of $23 per share in Contingent Value Rights (CVRs).  Here is the GEN Investor Deck presentation for more detail.

 

• Patriot National Bancorp, Inc. (Nasdaq: PNBK), lead bank subsidiary is Patriot Bank, National Association (FDIC 3928; total assets $998M) filed an 8-K this week stating they have “…launched an evaluation process to explore capital markets and strategic initiatives with the goal of maximizing shareholder value. This effort, conducted through Performance Trust Capital Partners, LLC (“Performance Trust”), a leading investment banking firm, will evaluate potential opportunities including capital raise, strategic partnership, sale, and/or merger and acquisition interest.” (bold emphasis added by Uncle Sean)

 

• Triumph Financial, Inc. (Nasdaq: TFIN) lead bank subsidiary is TBK Bank, SSB (FDIC 23498; total assets $5.9B), a financial holding company focused on payments, factoring, and banking particularly in the transportation industry, has acquired the assets of Isometric Technologies Inc. – a supply chain performance platform for shippers and transportation providers, further bolstering the banks presence and support In the transportation industry.  I like it!!! 👍

 

• And BofA gives a digital treasury flex 💪 this week…  Bank of America’s CashPro® App to surpass $1 Trillion in payment approvals this year as companies continue to use the mobile application to manage their treasury operations.
  • The article goes on to state that payment transaction have increased 25% over last year; and they have approximately 550,000 users at 40,000 companies around the world.  WOW!!!

 

• 👉 Lumin Digital partners with FinGoal to allow Lumin’s FI users to “leverage FinGoal’s data-driven insights to create personalized offers for their end-users and create higher conversion rates for their offers and campaigns.”  Congrats all around as this looks to be a very nice partnership!!!! 😊

 

• And a couple of MANTL announcements this week:
  • TruMark Financial Credit Union (Charter 66158; total assets $3.4B) announced a partnership with MANTL to enhance its in-branch and online business and consumer account opening.  Integrated with TruMark’s Jack Henry Symitar allows for automation of “over 90% of application decisions, including KYC, AML, BSA, product service ordering, funding, and core booking, to create efficiencies and keep manual processes to a minimum.”
  • 👀 Meanwhile…  MANTL announced the expansion of their deposit origination platform to now support business and consumer loan originations as well.  “By creating one seamless platform for loan and deposit origination, MANTL will help banks and credit unions supercharge growth, create real-time cross-sell opportunities, improve customer and employee experience, and benefit from underwriting automation and enhanced back-office efficiency.”

 

• Synergent announced a new partnership with equipifi to easily launch BNPL for credit unions using Synergent to access Jack Henry’s Symitar core processing.

 

• Energy Capital CU (charter 61936; total assets $251M) selects Velera (fka PSCU / Co-Op Solutions) as their new debit card processor.

 

• Ibanera (fintech enablement platform) is partnering with FIS to launch their new comprehensive Visa prepaid card program tailored for both business and consumers in the U.S.

 

• Slope launched a commercial buy now, pay later (BNPL) card solution powered by Marqeta that enables brands and marketplaces to allow their B2B customers to pay in-store or online with 30- or 60-day loan options.

 

• TD Bank (FDIC 18409; total assets $400B and a major CC issuer) has teamed up with Backbase to evolve its retail card business starting with +2 million customers of a (unnamed) “large strategic card partnership program.”

 

• ICYMI…  The CFPB issued a final rule on overdraft credit offered by very large financial institutions (assets more than $10B).  In short, the rule states that large FI’s can 1) charge $5 for overdrafts, or 2) limit the fee to an amount that covers the lenders’ costs, or 3) charge any fee while disclosing the interest rate of the loan.
  • As expected, the ruling was almost immediately met with a lawsuit from industry trade groups against the CFPB’s final overdraft rule.
    • Not that anyone asked Uncle Sean’s opinion 😉, but the CFPB ruling scheduled to take effect Oct 1, 2025 sure feels a little ill-timed given the new political administration’s expectation to appoint a new head of CFPB in January. 🤷‍♂️  Recall where the CFPB rule regarding CC late fee cap of $8 is still stuck in court.

 

• Notable FinTech funding for the week:
  • Jiko raised $29M in Series C round and strengthens its Board and Advisory Committee.
    • Personal note - Uncle Sean is happy to see this 🤠 as the Jiko story is one of my favorites and I share their story often (one of the earliest examples of a fintech acquiring their sponsor bank).  This also undoubtedly helps solidify Jiko Group, Inc. (the bank holding company for Mid-Central National Bank) position as a “source of strength” for the bank per the Federal Reserve public enforcement action last July.  Nice work! 🚀  Oh – and be sure to check them out at Jiko.com as it is a very cool platform.
  • Atlas Card (modern charge card issued by Lead Bank) raised $27M in Series B funding and announced a “breakout year, surpassing $200 million in annualized spend volume and achieving double-digit monthly growth, without any paid marketing spend.”
  • Current (consumer fintech banking platform) raised $200M in new capital with a 90% increase in revenue for 2024 and plans of “reaching profitability in 2025.”

 
 
Random Uncle Sean stuff:

• Cleanup on aisle four as this is starting to turn a little bit ugly!!! 😬  Albertsons has terminated the approximately $25B merger with Kroger after a judge blocked it; and is now suing Kroger seeking billions of dollars in damages along with a $600M termination fee alleging they did not do enough to get the deal approved.
• 🦋 The U.S. Fish and Wildlife seeking public comment on a proposed rule to list the monarch butterfly as a threatened species under the Endangered Species Act.  Time to kick those pollinator gardens into high gear!!!
• Here we go - the Dad / Bad Jokes for the week:
  • I figured it out…  The reason why grilled cheese and tomato soup go so well together is because it’s basically pizza split into two foods… 🍕😋
  • What does a house wear?  Address…. 😏
  • “As one door closes, another one opens…”  - as I’m eating the entire Advent calendar! 😅
  • Salons always have hair on the floor…  Bakeries always have flour on the floor…  Garages always have oil on the floor…  C’mon Bankers, it’s like you’re not even trying!!!! 😂🤣

 
 
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 [email protected] | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | [email protected] #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!!!
 
Uncle Sean is back from some much needed time off for Thanksgiving 🦃 where I learned that “leftovers are for quitters!!!” 🤣  Here is the Uncle Sean Update for 12/6/24:
 

• WOW – Bankers Helping Bankers (BHB) has been busy (and blessed).  Check out these recent announcements:
  • Shout out to Smiley Technologies, Inc. as the latest innovative institution to join Bankers Helping Bankers as a premier sponsor helping to drive and support community banks!!!
    • "Smiley Technologies has a long-standing reputation for delivering exceptional support to community banks through its flexible, responsive core solutions," said Matthew Smith, President of Bankers Helping Bankers. "As a premier sponsor, they’re not just contributing to our mission—they’re enhancing it. Together, we’re working to create a future where community banks have every tool needed to succeed, supported by a network of partners who truly understand and advocate for their unique needs." 🚀
  • PLUS…  A virtual high five and fist bump 👊 to E.W. & J. David Williams Family Trust Institute for Community Banking & Finance at Texas Tech University as the newest sponsor for "Friends of Bankers Helping Bankers" (BHB). ❤️
  • AND…  Another virtual high five and fist bump 👊 goes out to OAK Bank Services for their generous donation to Bankers Helping Bankers in support of community banks across the nation in supporting local economies. ❤️

 

• 👀 ICYMI - Frank Bisignano, Fiserv Chairman, President and CEO, has been nominated by President-elect Trump as Commissioner Social Security Administration.
  • Payments Dive has a good summary noting Bisignano’s track record of transforming large corporations, as Trump said in a post on Truth Social; as well as mention of Fiserv Executive Vice President Takis Georgakopoulos as a possible CEO replacement (per analyst speculation – no official word from Fiserv).

 

• And some summary economic data as we look forward to the next FOMC meeting coming up on December 17 – 18 (and ahead of the CPI inflation report due next Wednesday, Dec 11):
  • The BLS November Jobs Report came in a bit on the hot side with 227K jobs added (versus Dow Jones estimate of 214K) as well as a +24K upward revision to Oct to a total of 36K.  Unemployment ticked up to 4.2% as expected (last month was 4.1% while last year was 3.7%) and wage growth remains steady at 4.0% over last year (same for the last three months).
    • CNBC has a good summary as always.  If you want to dig into the revisions (normal part of the process), you can check that out here.
  • Another slightly hot read – Core PCE for October edged up to 2.8% from 2.7% for the prior three months. 
  • And the Federal Reserve Beige Book for November showed very slight increases in economic activity across most districts with employment levels remaining flat to up slightly as hiring activity remains subdued due to low employee turnover.

 

• 💪 Uncle Sean loves this!!!  Texas based Legend Bank (FDIC 3108; total assets $1.1B) announced a partnership with Infinant to power the bank’s newly launched Fintech Partner Banking division.  NICE!!!!! 🚀
  • Check out Infinant and their Interlace Platform for embedded banking solutions at Infinant.com – good things happening over there!

 

• Red River Bank (FDIC 34980; total assets $3.1B) selects Allied Payment Network for the bank’s “real-time payments solutions, which will integrate seamlessly with the bank’s Q2 Digital Banking Platform” that was also recently announced back in Oct. 👍

 

• 💥The Clearing House is increasing the RTP® network transaction limit to $10M - a 10X increase over the existing $1M limit.  The new limit is set to be effective beginning Feb 9, 2025 and is expected to spur “higher value transactions in real estate, supply chain, inter-company transfers, large merchant settlements, and other business-to-business transactions.”
  • 🤔 If I were a betting man, I would expect similar changes to Same Day ACH coming soon…

 

• Charlie (fintech banking app for Americans aged 62+) is making headlines again this week with the launch of CharlieSaver, a comprehensive source of senior discounts nationwide covering over 20,000 discounts across 1,000 shopping centers.
  • Worth noting that “Charlie Saver is free to use and available to all older Americans, not just Charlie customers.”  Nice!!! 😊

 

• And a host of AI-related announcements:
  • Inbenta and ebankIT have partnered together to enhance digital banking experiences with AI-driven customer engagement on ebankIT’s digital banking platform.
  • Shastic announced partnership integration with MeridianLink to provide AI workflow automation for banks and credit unions via the MeridianLink® Marketplace.
  • Uptiq.AI has acquired UpSwot enhancing Uptiq.AI’s enterprise AI platform.  “…the enhanced platform will allow financial institutions to seamlessly leverage structured and unstructured data for a wide array of use cases, from personalized customer interactions to complex decision-making processes like loan origination, compliance and portfolio management.”
  • Mbanq announced the launch of Mbanq Comet, an AI-powered digital loan origination platform that makes full use of artificial intelligence to modernize and enhance the lending process.  And integrates seamlessly with any core banking system.

 

• In the private credit space…  BlackRock continues its acquisition spree by acquiring HPS Investment Partners in a $12B stock deal.

 

• Some personnel moves:
  • DailyPay appointed Ryan Mang as Chief Commercial Officer.
  • Pipe (embedded financial solutions for SMB’s) announced the appointments of Claurelle Rakipovic as CPO, Nate Wiger as CTO, Amy Loh as CMO, and Jon Lear as Global Head of Growth following Pipe’s recent global expansion and the launch of the Pipe Business Card.

 

• Notable FinTech funding for the week:
  • Cardless (modern card platform for brands) raised $30M in capital quoting “10x revenue growth since the start of 2023.”
  • Lumin Digital (cloud-native digital banking provider) picked up over $160M in growth equity funding stating a revenue growth rate of over 60% from last year.

 
 
Random Uncle Sean stuff:

• 🎄Check out the lighting of the Christmas tree at Rockefeller Center as reported by NBC.  And more good news - the Notre Dame Cathedral in Paris is set to reopen this Saturday, Dec 7, for the first time since the devastating fire in 2019.
• Speaking of December 7th, take a look at this Pearl Harbor remembrance from The National WWII Museum as I am pretty sure that all of us have at least one extended family relative that served.
• And everyone’s favorite – the Dad / Bad Jokes for the week:
  • What do turkeys eat for Thanksgiving?  Nothing – they’re  already stuffed!!! 😂
  • I used to just crastinate…  Then I decided to go pro. 🏆
  • Can  you buy other chess pieces at a pawn shop? ♟️🤷‍♂️
  • Doing yoga everyday is a bit of a stretch…. 😅
  • And last but not least….  Life is short - smile while you still have teeth!!!! 🤣🙃

 
 
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 [email protected] | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | [email protected] #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.