​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.
 

Happy Friday!!!
 
Plenty to be thankful for as we get ready to head into Thanksgiving week 🙏.  From all of us here at FedFis, we certainly hope that each of you are able to spend some relaxing time with family, friends, and loved ones as we march full steam ahead into the Holiday season.🎄❤️  Here is the Uncle Sean Update for 11/22/24:
 

• 💥 Headlining this week is a special shout out to my friends at FinPro for their sponsorship as "Friends of Bankers Helping Bankers" (BHB).  Full disclosure – I really, really like these folks as they are highly intelligent, articulate, and motivated; and I’m very excited to continue to collaborate with the FinPro Team as we share so many common interests in supporting community banks and responsible innovation.  Be sure to follow FinPro, Inc. on LinkedIn (I love the short and informative videos)!!!

 

• 👀 The CSBS joins a growing list of industry pundits pushing back on the recent FDIC NPR on Brokered Deposit Reclassification by issuing a formal statement stating the proposal “is flawed and should be rescinded in its entirety.” 👏

 

• The Office of Financial Research released their released their 2024 Annual Report to Congress highlighting risks and vulnerabilities than can impair U.S. financial stability.
  • 👉 The punchline is that most vulnerabilities remain unchanged from the prior year.  The report covers Asset Markets, Business and Households, Financial Institutions (begins on pg 50), and Money Markets.
    • Here is the full 111 page 2024 Annual Report if you want to dig in.

 

• And a couple of CFPB announcements this week:
  • In light of the failure (fraudulent misconduct) of First National Bank of Lindsay, CFPB Director Rohit Chopra, issued a statement on deposit insurance reform calling on Congress to either “remove — or at least dramatically increase — limits on federal deposit insurance for payroll and other non-interest bearing operating accounts.” (bold emphasis added by Uncle Sean)
  • CFPB issues Final Rule on Oversight of Digital Payment Apps.  The biggest takeaway is the higher threshold targeting companies that handle more than 50 million transactions per year (up from the original 5 million); and limits the rule to transactions in U.S. dollars (exempting “digital currencies”).  Payments Dive has a good summary.  The rule is set to go into effect 30 days after it’s published in the Federal Register

 

• Meanwhile, the FDIC has extended the comment period by 45-days to Jan 16, 2025 for the FDIC NPR on recordkeeping for custodial accounts.  The original NPR published on Sep 17 aims to “strengthen recordkeeping for bank deposits received from third party, non-bank companies accepting those deposits on behalf of consumers and businesses.”  Also referred to as the “Synapse Rule.”

 

• 👀 Moody’s announced they have acquired Numerated as Moody’s continues to build out their end-to-end loan origination and monitoring platform.

 

• And more continued Small Business focus coming from some big players…  Fiserv (NYSE: FI) and ADP (Nasdaq: ADP) announced a strategic partnership to empower small business success by bringing together Fiserv’s Clover® and CashFlow CentralSM, with the industry-leading small business payroll and HR solution, RUN Powered by ADP®.  NICE!!!! 😊🚀

 

• Charlie (the fintech banking app for Americans aged 62+) announced the release of Family FraudShield, a free conversational guide to help Americans talk with their older relatives about financial fraud – particularly during the Holiday season.

 

• DR Bank (FDIC 58257; total assets $704M) is using Upstart's small-dollar loan product providing a fast, simple, and affordable solution for the banks customers facing urgent financial challenges via Upstart’s AI-powered digital lending model (Nasdaq: UPST).  The relief loans are available in amounts of $250 – $2,500 and for term of 3 – 18 months.

 

• MANTL announced they have selected Pinwheel to be the preferred provider for Direct Deposit Switching for MANTL partners and their consumers.

 

• Knot announced the launch of Knot AccountUpdater allowing “card issuers using Knot’s CardSwitcher™ product to update cardholder details—including card information, name, address, and phone number—across Knot-connected merchants with a single API call, requiring no effort from the cardholder.”

 

• And the winner is….  The Bank of New York Mellon Corporation (NYSE: BK) has been selected by the U.S. Treasury in a 5-year deal as agent for the Direct Express program, a prepaid debit card program for government benefits to approximately 3.4 million Americans, many of which are unbanked.
  • Per the BNY press release, additional providers to the Direct Express program include Mastercard, Galileo, MoCaFi, Senture, Sunrise Banks, N.A., and Ubiquity Global Services, Inc. 
    • Personally, I love the fact that BNY gave a shoutout to all other participants in the program – nice touch! 👍

 

• Sound Credit Union (Charter 66331; total assets $3B) expands their partnership with Candescent “adding digital account opening and onboarding as well as compelling self-service features such as credit score and continuous verification.”

 

• Michigan State University Federal Credit Union dba MSUFCU (Charter 23279; total assets $8.2B) partners with Reset to deploy Reset’s EWA solution to MSUFCU members.

 

• Notable FinTech funding for the week:
  • Kalder (white-label partner rewards platform for brands) raised $10.5M in Seed round capital.
  • Cardo AI (tech platform for asset-based finance and private credit) raised $15M in Series A funding round with FINTOP Capital, JAM FINTOP, and Blackstone Innovations Investments operating as co-leads.

 
 
Random Uncle Sean stuff:

• “OMG the McRib is back” (and of course I am compelled to insert Hangover 3 video clip here - https://www.youtube.com/watch?v=IwBSN9xsHac 🤪) beginning Dec 3rd – and you can buy the sauce by the half-gallon jug now if you so fancy!!!
• Looking forward to what is forecasted to be a beautiful Fall weekend here in East Texas with daytime temps around 75 and lows in 40’s – 50’s.  Nice outside firepit weather for sure!!!! 🍺🍷
• We made it – here are the Dad / Bad Jokes for the week:
  • I’m not saying I’m getting old, but I have officially reached the age where sometimes I can’t tell if I'm injured, or if this is just how I walk now!  😊
  • Do clown farts smell funny??? 🤡  OH C’MON – that was funny and you know it!!!! 😂
  • According to my chocolate Advent calendar, there are only three days left until Christmas… 🙃🤷‍♂️
  • And last but not least…  For my Dallas Cowboys 🏈 fans….  The Star is not a logo…  Apparently it’s a “one out of five” rating…. 😢😬

 
 
Have a GREAT weekend – GO OUTSIDE AND PLAY - 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!!!
 
Only one more full week to go until Thanksgiving Week ☺️🦃!!!!!  But first, here is the Uncle Sean Update for 11/15/24:
 

• The BLS Oct CPI report came in at 2.6% in line with expectations and slightly above last month’s reading of 2.4% with shelter prices continuing to drive the majority of the increase in CPI.  Core CPI remained at 3.3% also in line with expectations.  On a monthly basis, CPI was 0.2% for the fourth consecutive month while monthly Core CPI was 0.3% (also meeting forecasts).  CNBC has a good summary.

 

• 👀 For my community bank friends…  Acceleron Bank (in formation) announced their strategic partnership with Fiserv by integrating Acceleron’s FX marketplace with Fiserv Payments Exchange bringing an end-to-end automated and cost-effective international wire solution designed to benefit community financial institutions traditionally underserved in FX.  A few of the key highlights:
  • Faster Integration: Pre-integrated with Payments Exchange for seamless setup.
  • FX Marketplace Bidding: Multiple correspondent banks bid for each transaction for optimal FX rates (via Acceleron's SmartRoute system).
  • Error Reduction & Speed: Automated processing for accurate, reliable transactions.
    • 👉 Full disclosure – I love ❤️ my friends at Acceleron Bank (in formation).  They are highly intelligent, motivated, and passionate about community banking.  Good people doing good work is ALWAYS a powerful combination! 🚀

 

• Late last Friday, the NCUA conserved Alliance Credit Union of Florida (Charter 67432; total assets $59M).  Alliance has 5,394 members and 2 locations.
  • Although the NCUA did not specifically cite cause for the conservatorship, a quick look at FedFis Credit Union data shows:
    • Alliance has a FedFis Rating of 4.60 as of 9/30/24 placing them in the bottom 1% of all CU’s (yes, we have CU ratings as well 😊).  They appear to be having some loan delinquencies and charge-off’s – particularly in the Used and New Automobile segments. Significant increases in Credit Loss Provision on the Income Statement and increased Noninterest Expenses (specifically Office Operations) have resulted in material losses YTD of $2.4M which has resulted in equity decline to a balance of only $376K.
      • Housekeeping note…  Keep in mind that a conservatorship is not a failure.  The NCUA can place a CU into conservatorship in order to resolve operational problems that could affect that CU’s safety and soundness.  During conservatorship, the CU remains open, members may transact business, and accounts remain insured up to applicable limits.  If the CU is unable to overcome its operational issues the CU can move to merge with another CU, or the NCUA can liquidate the CU.

 

• 😬 While we are on the subject of failures, the FDIC and the OIG released their Material Loss Review of Republic First Bank (FDIC 27332; total assets $5.9B as of 12/31/23).  Per the FedFis write-up in April 2024 from yours truly 😊, “Republic Bank had significant operational performance issues involving duration risk, liquidity, and unrealized losses in the securities portfolio…  Total tangible equity of $101M renders them insolvent when adjusting for HTM Securities at FV.”
  • The Material Loss Review gave the same conclusion in that the bank “could no longer hold its “held-to-maturity” debt securities to maturity, requiring the Bank to reclassify them as “available-for-sale” securities.  Because of insufficient liquidity, the Bank then further determined it was “more-likely-than-not” that it would have to sell these securities before the recovery of the amortized cost, thereby requiring the Bank to recognize significant fair value losses in its net income.  Once this occurred, the Bank became critically undercapitalized for PCA purposes and was closed by the PAoDBS.”
    • Also of note is the direct quote “…the dysfunctional Board and management team was a significant contributing factor to the Bank’s troubled condition, its inability to adjust strategies and address increasing risk, and its eventual failure.” (bold emphasis added by Uncle Sean).  HOLY MOLY that’s got to sting a little bit!!! 😲

 

• Payments flex 💪…  The RTP® network, operated by The Clearing House, continues to break records including:
  • Now averages over 1 million payments per day and set single day records of 1.46 million transactions valued at $1.24 billion on November 1.
  • October record of 31.7 million transactions valued at $25.4 billion, up 6.2% and 9% respectively, from September.

 

• Dave (NASDAQ: DAVE) makes business model changes in light of last week's FTC complaint.  Per the article, the neobank announced compliance-focused changes to its business model during the 3Q earnings call, including a new sponsor bank that was not identified, but stated it was publicly traded.
  • 👀 For what it’s worth…  The legacy incumbent sponsor bank is embattled Evolve Bank & Trust…  Of course no one asked me 😊, but thinking out loud here…   I’m wondering if the new sponsor bank could possibly be SoFi (NASDAQ: SOFI) since Galileo (a subsidiary of SoFi) is currently involved in powering Dave banking products...  Want more strategic intel like this???  Contact our very own Bobby Button and ask about our FedFis FinTech Analytics© database (Uncle Sean loves a shameless plug). 💥

 

• Mastercard launched Mastercard Biz360 in partnership with Hello Alice and vcita.  The Biz360™ platform is a comprehensive digital solution designed to help financial and service providers offer their small business customers a way to consolidate the digital tools they use to run and grow their businesses.

 

• Paychex announced the launch of Paychex Funding Solution to give small and mid-sized business quick access to capital via invoice factoring without needing to be a Paychex payroll client.  Paychex also offers Small Business Loans through Biz2Credit.

 

• Mesa announced the launch of the Mesa Homeowners Card premium credit card that offers rewards focused on homeowners including mortgage payments and home expenses – without an annual membership fee.

 

• Having been anticipated for a while…  Klarna (BNPL) finally announced confidential draft Registration Statement to the SEC for proposed IPO.  Of course, due to the confidential nature of the registration, valuation and share info was not disclosed.

 

• Warrior Rising expands access to capital for veteran-owned businesses through partnerships with Parlay Finance and Live Oak Bank.  Nice!!!! 😊

 

• Grasshopper Bank (FDIC 59113; total assets $871M) partners with EnFi AI-based advanced credit analysis and risk monitoring solutions to boost operational efficiency.

 

• Following a successful pilot launch in April 2024 incorporating Galileo and SoFi Bank, Rapid Finance expands availability of Rapid Access Prepaid Mastercard to all eligible business Line of Credit (LOC) clients.

 

• Notable FinTech funding for the week:
  • Parker (fintech banking services for ecommerce brands) raised $20M in Series B funding round.
  • Affiniti (SMB co-branded credit cards) raised $62M in capital including an $11M Seed Round plus $16M in debt financing (of which $15M has option to upsize to $50M for a total of $51M in debt financing).
  • Talli (digital payments platform for the legal industry) raised $4M in Seed funding.

 
 
Random Uncle Sean stuff:

• It’s here!  The Jake Paul vs Mike Tyson boxing match is tonight Nov 15th at 7:00PM CST live on Netflix (but I expect the actual main fight to start much later).  At 58 years old, will Mike Tyson’s power and supreme knowledge of the sport be enough to defeat Jake Paul at 27 years old?  Reaction time should play a role plus a significant reach advantage for Paul (76” versus Tyson’s 71”) – not to mention stamina.  At Mike’s age, can he still get inside and deliver those powerful uppercuts and hooks with body roll and pivot without getting hit hard by Paul; and will Paul’s relative inexperience be his downfall?  Guess we will see tonight…  Here are some fight predictions from boxing experts.  It’s the classic “young bull versus old bull” scenario…  At some point youth will win out, but it may not be tonight! 🥊
• You can stop scrolling now – you made it to the Dad / Bad Jokes 😊:
  • Did we do it???  Did we save the daylight??? 🤷‍♂️🙃
    • And for crying out loud – how much daylight are they trying to save cause it’s way too dark when I get off work now!!!! 🙄😉
  • I’m not sure what my spirit animal is, but I’m fairly confident it has rabies! 😅🤪
  • What do you call a boomerang 🪃 that doesn’t come back?  A stick… 🫤
  • And last but certainly not least – another PSA from Uncle Sean….  No matter how good the hand soap smells, NEVER walk out of a public restroom sniffing your fingers…. 🤣 😂

 
 
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!!!
 
Apparently, there was an election this week (yep – who knew??? 🤷‍♂️🤠) so the FinTech and Banking news was fairly light (thankfully).  As a result, this week’s update will be short and sweet with Happy Veterans Day wishes as we honor and recognize all who have served in wartime and peacetime!!!  Here is the Uncle Sean Update for 11/8/24:
 

• SUPER CONGRATULATIONS to Ms. Tanna Faulkner, SVP at DCI for winning the coveted Buffalo Award at the FedFis Roundup Conference!!!! 🦬❤️🏆  The presentation ceremony by Matthew Smith (last year’s recipient of the Buffalo Award) was very special with tributes to her Dad who was a community banker.  By the end of the award ceremony, there wasn’t a dry eye in the entire hall.
  • For those who may be unfamiliar, the FedFis Buffalo Award is given annually to the person who has made the most impact on saving community banking over the past year.  If you know anything at all about Tanna, you know that this is really representative of a lifetime achievement award for her many years of service in supporting community banks; and mentoring so many of us along the way.  We love you, Ms. Tanna!!!!! ❤️  

 

• It’s Fed Week!!!  As expected, the FOMC voted to unanimously cut rates by 25 basis points bringing the federal funds rate down to 4.50% - 4.75%; and continue the $60B per month balance sheet reduction in Treasury securities rolling off as they mature.
  • More details if you want it:
    • Chairman Powell’s Press Conference Transcript (22 pages) and video (42:09)
  • And of course a few key takeaways from Chairman Jerome Powell’s press conference transcript (from Uncle Sean’s perspective anyway 😊):
    • “The economy is strong overall and has made significant progress toward our goals over the past two years.” – pg 1 opening paragraph.
    • “even with today's cut policy is still restrictive” – pg 10.
    • Reiteration that “the U.S. fiscal -- federal government's fiscal path -- fiscal policy is on an unsustainable path. The level of our debt relative to the economy is not unsustainable. The path is unsustainable. And we see that…  it is ultimately a threat to the economy.” – pg 17.

 

• 👀 And another CU acquisition of a bank…  This week it is DFCU Financial Credit Union (charter 61844; total assets $6.6B) to acquire Winter Park National Bank (FDIC 59105; total assets $845M)…  This is DFCU’s second acquisition of a bank following the acquisition of First Citrus Bank in Tampa that was announced in 2022 and completed in 2023.
  • Keeping score – the record of announced CU acquisitions of a bank is now at 20 so far for 2024 compared to 11 in 2023, 16 in 2022, 13 in 2021, 7 in 2020, and 16 in 2019 (source: FedFis).

 

• Infinant partners with Sutton Bank (embedded finance Sponsor Bank; FDIC 5962; total assets $1.5B) to advance and streamline the banks “payment processing and settlement activity across the bank's processor and program partners.”  By utilizing Infinant’s Interlace Platform, the bank can manage “multiple programs from a single console with real-time access to all program accounts and transactions with automated settlement to the bank's core system” without the need for core replacement or sidecar core.  NICE!!!!! 🚀
  • On a personal note, I had a chance to sit down and talk with the folks at Infinant this week – some really good people doing good work over there! 💪  If you reach out to them, tell them Uncle Sean sent you! 😊

 

• Lili (small business banking fintech) is launching Lili Connect, an embedded finance distribution strategy / integration allowing partners to offer Lili’s financial tools (small business banking, accounting, and tax process) directly to their own small business customers.

 

• And more small business focus ICYMI…  Novo (banking for entrepreneurs and solopreneurs) unveils a comprehensive suite of credit, financing, and bookkeeping solutions for small business owners that includes the launch of the Novo Business Credit Card issued by Continental Bank; and Novo Invoice Flex allowing customers to advance the full amount of their invoices instantly upon sending.

 

• Wings Financial Credit Union (Charter 68601; total assets $9.3B) selects Finzly’s modern payment hub to “streamline wires, ACH, and real-time payments on FedNow and RTP, ensuring compliance with ISO 20022 while enhancing efficiency and enriching the member experience.”

 

• Evolve Bank & Trust pens an Open Letter to their Open Banking Customers as they begin returning funds that Evolve holds to Synapse Brokerage end users.  The letter states that there “is no shortfall at Evolve” and that third party detailed reconciliation by Ankura “proved Synapse’s ledgers were false.”  Further stating:
  • “Of course, Evolve is just one piece of the puzzle. From the beginning, it has been a challenge to determine where end user funds are located because Synapse spread end user funds across numerous banks that partnered with or provided services to Synapse Brokerage. And because of Synapse’s incorrect ledgers, it is almost impossible to assess where each end user’s funds are held.”
  • “Without a comprehensive, ecosystem-wide review of transaction data, we cannot speak to what other banks may hold for each end user. But we hope those banks will work with us to compile a more complete picture of which banks held funds for which end users. We have asked the other banks previously to share comprehensive transaction data. While they have not yet done so, we remain hopeful that they will and that we will be able to finally determine just where each end users’ funds are.”
    • Oof…  Tough situation for everyone.

 

• Rumor Mill 🤔….  As reported by Bloomberg (and according to people “familiar with the matter” that asked not to be identified), financial advisors have allegedly been retained to find a buyer for Bremer Financial Corp., the bank holding company for Bremer Bank, NA (FDIC 12923; total assets $16B).

 
 
Random Uncle Sean stuff:

• Holy smokes it was a CRAZY busy week – but an awesome one as I got to see so many family members and very close business friends (that I consider family as well) at our FedFis Roundup Conference…  So let’s jump right into the good stuff – some good old fashioned Bad / Dad Jokes:
  • If a turkey runs away…  Does that make it a chicken???  🦃
  • What do you get when you cross a shark 🦈 with a cow 🐮???  You get your research funding permanently suspended! 😅
  • There is a new book out called, “How to Clear Leaves From Your Driveway” by Ray King… 🙄😊
  • I told my boss that I was coming to work for Halloween as a ghost…  I’ll be there, you just won’t see me… 😂
  • You know when you buy a bag of salad and it starts getting all brown with that gross water in it…???  Yeah, ice cream doesn’t do that! 🤣

 
 
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!!!
 
🎃 Hopefully everyone had a joyful Halloween this week!!!  Hard to believe it is already November; and there is an election coming up (get out there and vote if you haven’t already); an FOMC meeting next week; and The Roundup Conference by FedFis – but first, here is the Uncle Sean Update for 11/1/24:
 
Jumping straight into some fresh economic data… 🤓🤠
 

• Third Quarter 2024 GDP (advanced estimate) came in at 2.8% for 3rd Quarter versus an estimate of 3.1% and down from 3.0% last quarter.  CNBC has a good summary.
  • 👉 Keep in mind that this is the advance estimate….  The BEA always releases two estimates of quarterly GDP, known as the advance and preliminary estimates, in the two months before the release of the final number.

 

• PCE (the Fed’s preferred inflation metric) came in at 2.1% for September (a 3 1/2 year low), closing in on the Fed target level of 2% and down from 2.3% in August.  HOWEVER….  Core PCE inflation continues to prove sticky (LOL) at 2.7%.
  • 👀 Core PCE trend – 2.7% May, 2.6% Jun, 2.7% Jul, 2.7% Aug, 2.7% Sep…  Yep – stickier than molasses!

 

• The BLS October Jobs Report comes in at 12K versus 100K estimate with healthcare and government leading job creation (+52K and +40K respectively) with several sectors reporting modest job losses; unemployment remained at 4.1%; and average hourly earnings continues to outpace inflation at 4.0% YoY increase.  Aug / Sept jobs revised down (which has been the trend lately) by -81K and -31K respectively. NBC has a pretty good summary.
  • 👉 As with the GDP estimate, keep in mind that the Jobs Report is always revised for two months following the initial estimates as more data becomes available.  Here is the 2024 BLS Revision History for more detail as this remains a hot topic 🔥 in many economic discussions.

 

• Meanwhile, the 10YR Treasury yield has jumped up to 4.36% (source: https://www.cnbc.com/quotes/US10Y - 11/1/24) which is a 4-month high (and up almost 20% since 9/16 close of 3.64%) despite FOMC rate cuts and what appears to be a cooling economy…???  Yes, I know…  It’s confusing to me too and seems completely bassackwards…  🤷‍♂️😕

 
Okay – back to the rest of the Update:
 

• FirstSun (Sunflower Bank) and HomeStreet failed to meet the necessary regulatory approvals and have been asked to withdraw their merger applications…  🤔  “We are disappointed that the regulators are unwilling to grant the regulatory approvals necessary for the merger to proceed,” stated Mark Mason, Chairman, President and Chief Executive Officer of HomeStreet. “Importantly, HomeStreet has been advised by its regulators that there were no regulatory concerns specifically related to HomeStreet that would have prevented approval of the merger.”
  • Yessir - That’s the merger equivalent of stating, “I’m not saying it’s your fault, but it sure ain’t mine!” 😅

 

• Following recent announcements of international expansion and a $100M bump in their credit facility, DailyPay (EWA) has launched Internation Remittances “powered by the financial technology solution ReadyRemit by Brightwell and Visa Direct.” (bold emphasis added by Uncle Sean)

 

• 💪 ZSuite Tech continues is trek across America – this week, BankNewport launches ZEscrow for Rhode Island business.
  • I swear they are going to run out of banks soon!  LOL!!!  The Team at ZSuite Tech is on a roll! 🚀

 

• Spruce by H&R Block expands its partnership with Atomic by integrating Atomic’s PayLink Switch alongside Atomic's Deposit solution to “streamline the flow of money into and out of consumers’ accounts, providing a comprehensive solution for managing direct deposits and switching payments to Spruce.”

 

• First Bank of the Lake (FDIC 26960; total assets $1.5B) leans into embedded finance by partnering with Infinant and utilizing Infinant’s Interlace Platform to power digital and embedded banking channels within the bank without core replacement.  Nice!!!! 🤘

 

• dash.fi partners with Episode Six (E6) to launch its Net 60 term business charge card powered by E6.

 

• Marqeta announced the launch of Marqeta Flex (an embedded BNPL solution) to allow personalized BNPL options for consumers (at point of need) directly into payment apps and wallets.  Check it out (no pun intended 😊) at Marqeta Flex.

 

• Synchrony (NYSE: SYF; FDIC 27314; total assets $112B) and JCPenney extend their nearly 25-year partnership; and announce the addition of Synchrony Pay Later, a buy now, pay later financing option, to be offered at JCPenney to meet customer needs, especially in JCPenney's fine jewelry business. 

 

• Pinwheel partners with Terafina/Candescent to bring “Pinwheel's direct deposit switching solution to Terafina's/Candescent's bank and credit union customers, providing them with a streamlined and unified account opening experience across digital and in-person channels.”

 

• Some personnel moves:
  • Revio Insight names John Wallace as VP of Sales – congrats, John!!!  With Brian Bauer, Sanjay Bhaskar, and now John Wallace – this is a team to watch! 💥
  • Moneygram appoints Anthony Soohoo as CEO.

 

• Notable FinTech funding for the week:
  • Tilled (embedded payments) raised $12.5M in new capital.
  • Melio (B2B payments) raised $150M in Series E funding round at a $2B valuation! 🦄

 
 
Random Uncle Sean stuff:

• HAPPY BIRTHDAY to our baby girl Claire this weekend!!!!  Mom and Dad love you!!! ❤️  And this birthday officially marks the bittersweet moment of no more teenagers left in the Mayo clan!  What a wild ride it’s been!!! 🥲😊 
• ⏰ DON’T FORGET – the Time Change is this weekend as we “fall back” and gain an extra hour of sleep!!! 💤  I need it!!!!
• The Los Angeles Dodgers picked up their eighth World Series Championship by overcoming a 5-run deficit over the Yankees for a 7-6 win in Game 5.  ESPN has a pretty cool write-up.

• Here we go – the Dad / Bad Jokes:
  • I do crunches 2X per day…  Captain in the morning and Nestle in the evening! 😊
  • I hear people say “if you want loyalty, get a dog,” but I’m fairly positive that my dog would abandon me in a dark alley for a three-day old pizza crust, so maybe loyalty has layers… 🐶😅
  • So my bank just added a new service that sends me a text message with my bank balance when I ask.  It’s kind of cool, but I wish they wouldn’t add “LOL” at the end… 😂🤣
  • “Apparently” stress balls are not supposed to be thrown directly at the person stressing you out….  Who knew??? 🤷‍♂️
  • And lastly….  I never make the same mistake twice…  I typically go for five or six times in a row – you know, just to be sure! 😉🤠

 
 
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!!!
 
WOW this week was jam packed with high profile market research headlines – so let’s jump right in!!!  Here is the Uncle Sean Update for 10/25/24:
 

• Hey – remember last week when Uncle Sean asked if we will start to see banks explore fintech acquisitions for instant deposit and noninterest income growth???  Well, that didn’t take long (LOL) as First Carolina Bank (FDIC 35530; total assets $3B) announced an agreement to acquire BM Technologies for $67M.  This is a really cool story as First Carolina bank is one of the Sponsor Banks for BMTX.
  • As the World Turns 😊…. (pardon me while I completely geek out – LOL)…
    • Recall many moons ago where BankMobile was a direct digital bank division of Customers Bank (FDIC 34444), but was spun off and sold making Customers Bank an immediate Sponsor Bank to BMTX.  Years later, BMTX had attempted to get its own bank charter buy acquiring First Sound Bank (FDIC 57799), but that deal was ultimately terminated; and First Sound bank was acquired by Harborstone Credit Union earlier this year.
    • Seeking to diversify from Customers Bank, BMTX announced First Carolina Bank as their new sponsor bank for the BankMobile Vibe accounts. 
    • Now the Sponsor Bank has acquired the fintech…  “Upon completion of the transaction, BM Technologies will become a wholly owned subsidiary of First Carolina Bank….  will continue operating under the BM Technologies name…”  Basically – BM Technologies will return to being a Direct Digital Bank, but this time as a division of First Carolina Bank.
      • That was a cool trip down BaaS Memory Lane – LOL!!!! 🤓

 

• 👀 And another CU acquisition of a bank…  This week Y-12 FCU (Charter 6775; total assets $2B) to acquire First State Bank of the Southeast Inc (FDIC 2710; total assets $415M).
  • Keeping score – the record of announced CU acquisitions of a bank is now at 19 so far for 2024 compared to 11 in 2023, 16 in 2022, 13 in 2021, 7 in 2020, and 16 in 2019 (source: FedFis).

 

• Bank failure (fraud)…  Late last Friday, The First National Bank of Lindsay, Lindsay, OK (FDIC 4134; total assets $108M; total deposits $97.5M) was closed today by the OCC.  The OCC acted after identifying false and deceptive bank records and other information suggesting fraud that revealed depletion of the bank’s capital. The OCC also found that the bank was in an unsafe or unsound condition to transact business and that the bank’s assets were less than its obligations to its creditors and others.
  • The FDIC resolution includes a purchase and assumption agreement with First Bank & Trust Co. Duncan, Okla., to assume the insured deposits of The First National Bank of Lindsay for a 6.67 percent premium. It will also purchase approximately $20 million of the failed bank’s assets.
    • The FDIC will make 50 percent of uninsured funds available to those depositors on Monday, October 21, 2024. This amount could increase as the FDIC sells the assets of the failed bank. Approximately $7.1 million of the deposits exceeded FDIC insurance limits; this amount is likely to change once the FDIC obtains additional information from customers. 
  • The FDIC preliminarily estimates that the failure will cost its Deposit Insurance Fund (DIF) about $43 million.  That’s quite a bit for a $108M bank with $98M in deposits - OUCH!!! 😲  It will be interesting to see what additional information comes out of this soon…

 

• And here we go – 1033 is now final!!!  The CFPB published the much anticipated final rule (affectionately known as the 1033 Open Banking rule).  The 594 page document (HOLY MOLY) offers plenty of reading time… ☹️  Looks like first compliance dates are set to begin in April 2026 and subsequent years following through 2030 depending on the criteria set forth in § 1033.121(c) – found on page 83 for depository institutions (you’re welcome 😊).
  • Banking Dive has a good summary reminding us that banks and credit unions with less than $850M in total assets are exempt, but non-depository entities of any size must comply.
    • Maybe a contrarian viewpoint, but here is some Uncle Sean “Food for Thought” - It will be interesting to see if at some point in the future banks and credit unions under the $850M compliance threshold voluntarily begin to participate in order to remain competitive; and/or does this exacerbate the acquisitions of those smaller banks by larger FI’s that offer open banking… 🤔
  • Not so fast???  Almost immediately, the Bank Policy Institute, the Kentucky Bankers Association, and Forcht Bank filed a joint lawsuit claiming the CFPB is overstepping its authority and asserting the rule would put consumers and the banking system at risk.

 

• Speaking of open banking….  Prism Data announced the launch of CashScore® v4, “a new and more powerful version of its market-leading cash flow underwriting score that helps financial institutions and fintechs more accurately assess creditworthiness” by analyzing consumers' open banking data.
  • Keep in mind that most recently, Nova Credit announced a partnership with SoFi, Plaid announced a partnership with MoneyLion, and Prism Data recently announced it's working with Equifax to make Prism cash flow underwriting solutions and the CashScore broadly available to lenders.  And don’t forget that Mastercard debuted Mastercard Connect Plus to “give consumers control of where, how and with whom their financial data is shared.”
    • Yessir – things are moving quickly in this space…. 🚀

 

• This is great!!!  Fiserv (through the Finxact platform to be precise) delivers embedded finance to DoorDash as part of the DoorDash Crimson Program with the Visa Debit card issued by Fiserv community bank client, Starion Bank (FDIC 33758; total assets $1.9B).  Very nice!!!! 💪

 

• Green Dot Bank (FDIC 22653; total assets $4.6B) has launched Arc by Green Dot representing a comprehensive set of embedded finance / banking-as-a-service (BaaS) capabilities with direct integration to Green Dot Bank.
  • I like it and it sure feels like the industry is headed in this direction as we continue to bring BaaS back to the bank (I love that line) – especially after the middleware meltdown era we have just experienced (TPRM anyone?).  Makes sense when you think about it – especially considering “payments subsidiaries” have been around for a while now (Kotapay, Transfund, Central Payments, etc.).  Is this the next logical step?  I guess time will tell, but there are many examples already in operation:
    • Victor Technologies by MVB, BancFi by Piermont, Avenu by Mainstreet Bank, Maast by Synovus, Bend by FNBO, Newline by Fifth Third, and more…
      • 👉 Want more information (here comes the plug 😊)???  Contact our very own Bobby Button for strategic market intelligence here at FedFis. 🤠

 

• And another example of BaaS and payment subsidiaries…  Kotapay, a division of First International Bank & Trust, announced the launch of Kavinu, a direct-to-bank BaaS platform “designed to eliminates the instability of middleware-reliant BaaS models.”  You know Uncle Sean likes that!!! 😊

 

• Initially covered back in April, Santander has now officially launched Openbank, their direct digital bank, in the US.  Openbank is currently Europe’s largest 100% digital bank by deposits; and will operate in the US as a division of Santander Bank, N.A. (FDIC 29950) which is a $100B bank.  Check them out at Openbank – which is currently sporting a high-yield savings account at 5.25% APY (in select markets only) with many more services set to launch in 2025! 💥

 

• Stripe coughs up a smooth $1.1B (cha-ching) to acquire Bridge, a stablecoin platform.  Per this CNBC article, “Investors familiar with Bridge’s financials said annual revenue is in the range of $10 million to $15 million. At the low end of the range, that’s a multiple of 110 times revenue, and at the high end, it’s a revenue multiple of over 70.”   WHOA!!!💰🤑

 

• LoanPro announced the launch of Smart Verify for rapid identity verification and ongoing monitoring for business and consumer accounts.
  • “LoanPro customers can streamline and simplify their processes for account-disrupting events, such as bankruptcies, deaths, or lawsuits. Without these data tools, a lender trying to comply with the Servicemembers Civil Relief Act (SCRA) or Military Lending Act (MLA) would need to either request documentation from their customer or manually search for proof of their enlistment and active-duty status. LoanPro’s SCRA/MLA Verify streamlines this process into a one-click action, offering instant verification that benefits both the borrower and lender.”

 

• ZSuite Technologies teams up with COCC to offer ZSuite’s innovative escrow solutions to bank and credit union clients of COCC.

 

• Atomic announced a new partnership with M1 Finance to provide Atomic’s Direct Deposit Switching (DDS) integration within M1’s Invest and Earn products.

 

• Socure (in the red-hot digital identity verification space) is set to acquire Effectiv, a real-time risk decisioning platform, for $136M.

 

• North Bay Credit Union (Charter 63373; total assets $119M) leans in as a BaaS Sponsor FI by partnering with Braid payments and treasury management platform.

 

• Evolve Bank & Trust (mired in the Synapse middleware bankruptcy disaster 💩) stated that it is preparing to return funds held at Evolve to Synapse Brokerage end users.  Per the article, Evolve will launch an online resource center (https://reconciliationbyevolve.com/).  End users with a balance at Evolve will be asked to select a payment method election on November 4, 2024, and payments will begin shortly thereafter. 
  • Certainly worth noting that many end user funds have been frozen since early May (about 6 months)…

 

• Oof… 😧 The CFPB has ordered  Apple and Goldman Sachs to pay $89M for mishandling customer disputes of Apple Credit Card transactions; AND has banned Goldman Sachs from launching new credit cards unless it can provide an adequate plan to comply with the law.

 

• Notable FinTech funding for the week:
  • Obligo (flexible security deposit solution between renters and property managers using open banking protocol) raised $35M in new funding.
  • Zip (global enterprise procure to pay platform) raised $190M in Series D at a $2.2B valuation – WOW!!!
  • Interface.ai (customer automation platform for banks and other financial institutions) raised $30M in capital consisting of $20M in equity round plus $10M in debt financing.
  • Finix (payment processor) raised $75M in Series C funding round.
  • DailyPay (EWA) picked up an additional $100M commitment to its secured credit facility capacity from Citi.

 
 
Random Uncle Sean stuff:

• ⚾ The World Series is set with the Yankees vs. Dodgers. Game 1 will be Friday in L.A on Fox.  Whew - that is about the toughest travel schedule you can get!  This is the 12th time these two iconic teams have met in the championship series.  ESPN has a great summary of this rivalry history dating back to 1941 (remember the Brooklyn Dodgers?).
• You made it!!!!  Here are the Dad / Bad Jokes:
  • Definition of the week….  “Avoidable” – what a matador attempts to do. 🐂🤠
  • PSA – laxatives and sleeping pills should not be taken together! 😬
  • I asked our Head of IT, “how do you make a motherboard?”  He said, “I just start telling her about my job.” 🤓😆
  • Of all the things that taste like chicken, it’s weird that eggs aren’t one of them… 🤔🤷‍♂️
  • Pretty sure we are called grown-ups because we groan every time we get up!  😂🤣

 
 
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!!!
 
It was a really light week in the news (thankfully – LOL), but some important updates nonetheless!  Here is the Uncle Sean Update for 10/18/24:

• 💥 Cambridge Savings Bank (FDIC 17870; Total Assets $7.1B) announced that Ivy Bank, their direct digital bank division, has surpassed $1B in deposits and added over 14,000 customers since its launch in 2021 – HOLY SMOKES!!!
  • As many of you already know, Uncle Sean is a huge fan of the direct digital bank model (think of this like the bank launching their own fintech brand – many times with its own diversified tech stack, but without many of the TPRM and ledger issues that Sponsor Banks face) and I am stoked to see the success here! 😊
    • Begs the question….  As we see the yield curve correct, continued NII / NIM growth, and AOCI issues begin to disappear in a declining rate environment – will we see banks start to seriously explore acquiring B2B and B2C fintech companies for instant deposit and noninterest income growth / diversification??? 🤷‍♂️

 

• 👀 Fiserv continues its SMB push through its partnership with Walmart…  Walmart (through its Walmart Business division) is expanding its relationship with Fiserv by announcing the ability for Walmart Business customers to access solutions from Clover with a $500 discount on Clover products through January of next year as well as a $100 gift-card to customers who sign up for a merchant account. 
  • 👉 This expands on last month’s PR where Walmart is partnering with Fiserv (NOW Network) to offer real-time pay-by-bank to its customers beginning in 2025.  Nice!!!! 😊

 

• Some big numbers here….  Nacha announced Same Day ACH volume rose 67.5% in the 3rd quarter 2024 and total ACH Network payment volume rose 7.4% from a year earlier. 🚀  More specifics:
  • 355.2 million Same Day ACH payments in the third quarter (up 67.5% YoY); the value of those payments rose 38.8% to $844 billion.
  • Total third quarter ACH Network volume was 8.4 billion payments valued at $21.5 trillion, respective increases of 7.4% and 8.9% over a year earlier.

 

• Meanwhile….  Early Warning Services, LLC., the network operator of Zelle® , announced their own set of big numbers 💥 sporting nearly half a trillion dollars sent in first half of 2024, specifically noting:
  • 143 million enrolled users (up from 17 million in 1H2023); $481B sent in 1.7B transactions, up 28% and 27% YoY, respectively; more than 2,200 banks and CUs on the network.

 

• 👀 Galileo (owned by SoFi which is a nationally chartered bank) has launched Cyberbank Core for commercial payments and sponsor banking, with SoFi as the inaugural customer, to power a range of payment services to commercial clients, including debit, prepaid, ACH and wire transactions, and associated banking services.
  • Hmmm…  🤔 It will be very interesting to see if this remains a payments type core; or if it evolves into something more…

 

• Speaking of SoFi…  Nova Credit announced an expansion of its multi-year relationship with SoFi by enabling SoFi to access consumer-permissioned bank data and cash flow analytics through Nova Credit’s Cash Atlas™ solution.

 

• And more SoFi news….  SoFi and Best Egg both get boosts from private credit to grow their loan platforms.  Fortress Investment Group has extended $2 billion loan platform business agreement for personal loans to SoFi; and Best Egg recently secured a $500M purchase facility to enable personal loans – also from Fortress.

 

• Long rumored, but now it’s done…  Barclays (through their Barclays US Consumer Bank) to replace Goldman Sachs as the exclusive issuer of the GM Rewards Mastercard and the GM Business Mastercard credit card in the US beginning next summer.

 

• Flex (financial solutions for renters and property management companies) has partnered with FairPlay to utilize FairPlay’s advanced algorithmic fairness solution to ensure fairness, transparency, and compliance for Flex and their customers.

 

• Amount unveiled its new Unified Account Opening and Loan Origination Platform for banks and credit unions.

 

• More open banking headlines…  Mastercard debuts Mastercard Connect Plus, a data-consent command center and new enhanced identity and device intelligence features to “give consumers control of where, how and with whom their financial data is shared.”  Mastercard is piloting Connect Plus this year and expects to expand to full availability in the U.S. in 2025.  Very much needed in our new (and relatively unfamiliar) world of open banking!!!! 👍

 

• Navigant Credit Union (Charter 62882; Total Assets $3.8B) selects Baker Hill for its commercial loan operations. Per the article, Baker Hill is able to integrate directly within Navigant’s Fiserv DNA core, which Baker Hill says will allow the credit union to “leverage data in multiple instances, instead of being burdened with redundant data entry”.

 

• New York Community Bancorp (NYSE: NYCB), the holding company of Flagstar Bank, N.A. (FDIC 32541; total assets $119B), announced they will change their name to Flagstar Financial, Inc. effective Oct 25, 2024 and will also change their ticker symbol to FLG.

 
 
Random Uncle Sean stuff:

• 🏆 It’s official!!!!  Coming in at a whopping 2,471 pounds 🎃 - Travis Gienger, a Minnesota horticulture teacher, is the 4 time reigning champ 🏆 of the 51st World Championship Pumpkin Weigh-Off contest in Northern California (a 35 hour drive from MN).  Gienger said the pumpkins next stop will be in Southern California, where a team of professional carvers will do a 3D carve on it at a Halloween event.
• You now what time it is….  It’s Dad / Bad Joke time!!!
  • It’d be a lot cooler if we just called electricians “Power Rangers” ⚡
  • When bald people wash their faces, how high do they go up? 🤔
  • You ever get up in the middle of the night to get a drink of water and end up eating an entire pepperoni pizza and a key lime pie???   Asking for a friend… 😬🤠
  • Whenever I get something stuck in my throat, I just dislodge it with a cold beer…  It’s called the Heineken Maneuver… 🍺😊
  • And my favorite for this week…  When you have cheese but no crackers…  You be CRACKA-LACKIN!!! 😂🤣

 
 
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!!!
 
You can subscribe here for free to have the Uncle Sean Update and FinTech Cowboys interviews delivered straight to your inbox every week!  Here is the Uncle Sean Update for 10/11/24:
 

• Okay – I know this has been covered in great detail all week, so I will try to be brief…  ICYMI, TD Bank was hit with $3.1B in penalties and restricted asset growth over AML issues.  This has been expected for some time and TD had already set aside previous provisions of $3.05B. 
  • As part of the settlement, total assets of TD’s two US banking subsidiaries (TD Bank, NA and TD Bank USA, NA) cannot exceed a combined US$434B in assets.  A pretty big pain point since TD Bank has been growing rapidly in the US and is now the 10th largest bank domestically.  OUCH!!!!
    • Recall where Wells Fargo has been operating under an asset cap since 2018 and may finally get out of it next year…. Maybe… 😬
  • 👉 If you haven’t already, I 💯 recommend following Sarah Beth Felix on LinkedIn (she is the absolute BOMB 💥 in all things AML – and a super awesome person too!).  She has a great write-up of the OCC and FinCEN order for TD Bank – an incredibly valuable learning resource.
    • Shameless plug warning 😊…  Speaking of…  The legendary Sarah Beth Felix will be at The FedFis Roundup conference on our Night 1 Banker Panel open discussion??? 🤠 Always free for bankers - sign up here.  See ya there!!!!!

 

• 👀 And another CU acquisition of a bank this week breaking the record that we broke last week.  HAPO Community Credit Union (Charter 68239; Total Assets $2.4B) to acquire Community First Bank (FDIC 34627; Total Assets $632M).
  • Keeping score – the new record of announced CU acquisitions of a bank is now at 18 so far for 2024 compared to 11 in 2023, 16 in 2022, 13 in 2021, 7 in 2020, and 16 in 2019 (source: FedFis).

 

• On the economic front, the BLS Sept CPI Report shows inflation still coming down albeit ever so slightly but displaying some stickiness in Core…  CPI came in at 2.4% YoY (Aug was 2.5% and expectation was 2.3%) and 0.2% for September (Aug was 0.2% and expectation was 0.1%).  Core CPI rose 0.3% for the month and ticked up slightly to 3.3% YoY.  CNBC has a good summary.

 

• 👍 Good news – the CSBS is reporting that the third quarter 2024 Community Bank Sentiment Index (CBSI) moved up 11 points to 110.  This is the first time it has surpassed the neutral level of 100 since the fourth quarter of 2021, despite continued concerns about regulatory burden.
  • Yessir - a proper yield curve sure goes a long way in making bankers happy! 🤓🤑

 

• Shout out to Grasshopper Bank (FDIC 59113; Total Assets $836M) announcing a definitive agreement to acquire Auto Club Trust, FSB (FDIC 35115; Total Assets $484M).  This is the banks first acquisition since being established in May 2019; and one that makes sense as an expansion of Grasshopper’s embedded finance strategy to “6 million households and strengthens the lender’s position in digital banking through commercial, small business, and consumer product offerings digitally under the AAA brand” per this Banking Dive article.  Congrats! 🚀

 

• A couple of NCR Atleos wins this week:
  • CoreFirst Bank & Trust (FDIC 18100; Total Assets $1.2B) has joined the Allpoint Network of ATM’s operated by NCR Atleos.
  • NuMark Credit Union (Charter 61447; Total Assets $778M) has selected Atleos’ ATM as a Service (ATMaaS) and ITM as a Service (ITMaaS) to modernize its branch network.

 

• FinTech Automation announced the launch of their new innovative card issuance platform called ChargeIt™ designed to enable banks, neo-banks, and credit unions to issue tailored card programs for corporate brands.

 

• Plaid announced the launch of Pay by Bank for Bill Pay to help businesses capitalize on the opportunity of Pay-by-Bank recurring payments solution by providing consumers with a more seamless, cost-effective and secure way to pay bills, and to help businesses benefit from lower processing costs and fewer returns for all types of recurring payments.

 

• Venmo introduced the ability to schedule on-time or recurring payments or requests to schedule one-time or recurring P2P payments monthly, weekly, or bi-weekly in advance.

 

• Lakeside Bank (FDIC 19573; Total Assets $2.6B) selects Volante Technologies Payments-as-a-Service (PaaS) platform to enhance the banks SWIFT cross-border, RTP® real-time, and FedNow® instant payments “marking a significant advancement in Lakeside’s ability to offer best-in-class real-time treasury services to its customers.”

 

• Notable FinTech funding for the week:
  • Privacy Lock (data privacy and compliance solutions for FI’s) closed its Seed Round.
  • Mercury (business banking app) raised $100M credit warehouse facility to develop its credit card program.
  • Imprint (modern co-branded credit card platform) raised $75M in Series C round at a $600M valuation.
  • Zeal (modern payroll platform) raised $15M in Series B funding round.

 
 
Random Uncle Sean stuff:

• Agility Robotics shows off its "RoboFab" facility in Oregon where it plans to mass produce its first line of humanoid robots, called Digit.  Looking forward into the future, the goal is to have robots eventually building themselves….  Dude – I’m just happy it doesn’t look like the Terminator (uh, no red eyes please)…  Yet!!! 😲🤖
  • Speaking of…  Did you see Tesla's Robotaxi event this week?  More specifically the Optimus Robot or the Robovan???
    • I mean seriously…  Has anyone even seen the movie I, Robot???  LMAO!!!! 🤣
• 🏈 Last weekend was a crazy weekend in college football with 4 of the top 11 teams being upset by unranked teams.  The most impressive underdog victory was Vanderbilt taking down #1 Alabama 40-35.  Joining the list of upsets were #4 Tennessee (lost to unranked Arkansas), # 10 Michigan (lost to unranked Washington), and #11 USC (lost to unranked Minnesota).
  • Next up this Saturday is OU versus Texas in the Red River Rivalry where Texas is heavily favored, but anything can happen in this game!
• Okay – on to the good stuff…  The Dad / Bad Jokes:
  • I don’t mind getting older, but my body is having an absolute hissy fit over it! 🙄
  • My grandmother made it to 100 yesterday – and that’s the last time I get in the car with her when she’s late for bingo!!! 😲🙃
  • Do railroad workers have to be trained…??? 🚂😏
  • The dentist told Aunt Patty she needed a crown…  She was like, I know – right!!! 👑😂

 
 
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!!!
 
The fallout from Hurricane Helene continues to be devastating – particularly to our friends in Eastern Tennessee / North Carolina state lines.  Here are a few places you can help if you choose - RedCross - Hurricane Helene and Salvation Army Hurricane Helene Relief; and this site from Good Morning America - Hurricane Helene - how to help has several more including some local organizations. ❤️🙏  Here is the Uncle Sean Update for 10/4/24:

• The headline story this week is we set a new record of Credit Unions acquiring banks 😲…  This week it is OneAZ Credit Union (Charter 61315; total assets $3.3B) to acquire 1st Bank Yuma (FDIC 57298; total assets $624M).
  • Keeping score – the new record of announced CU acquisitions of a bank is now at 17 so far for 2024 compared to 11 in 2023, 16 in 2022, 13 in 2021, 7 in 2020, and 16 in 2019 (source: FedFis).  I suspect we could see at least a few more prior to year-end.

• 👀 Check out Fiserv as they take a BIG link out of the payments supply chain with their newly approved special banking charter from the Georgia Department of Banking and Finance.  Per the article, Fiserv will now have direct access to card networks, and will no longer need to partner with banks to process card transactions.  Essentially allows Fiserv to own the transaction end-to-end enabling them to authorize, settle, and clear payments for merchants.
  • To be clear, this is a merchant acquirer limited purpose bank charter (MALPB) and not a full-fledged bank charter. 👍

• On the economic front…  The BLS Sept Jobs Report came in smoking hot 🔥 with 254,000 jobs added (+150,000 expected, +159,000 prior revised up from an initial +142,000, and July was also revised up to +144,000 from +114,000) and an unemployment rate of 4.1% (4.2% expected, 4.2% previously).  CNBC has a good summary.
  • On the revisions – keep in mind that the Jobs Report is always revised for two months following the initial estimates as more data becomes available.  If you want to geek out even more (like me 🤓), check out the 2024 BLS Revision History.

• There was a mega-merger announced in the CU space with Digital Federal Credit Union (Charter 23521; total assets $12B) and First Tech Federal Credit Union (Charter 19976; total assets $16.7B) to combine through a merger of equals with the combined organization operating under DCU’s charter and the First Tech Federal Credit Union name.  The newly combined entity will create a $28.7B credit union which would place them as the 6th largest CU in the Nation just behind Boeing Employees with $29.6B in total assets (source: FedFis).

• ICYMI - the OCC issued a bulletin this week providing guidance for managing credit risk associated with Refinance Risk for Commercial Loans.

• Jack Henry (Nasdaq: JKHY) and Victor offer embedded payments platform for FI’s to better support business customers (Victor is a division of MVB Bank).
  • Per the article, “Financial institutions on Jack Henry's SilverLake core can now leverage Victor's embedded payments platform, allowing corporate clients, software companies, and fintechs to seamlessly embed payments capabilities through a single API. The core integration allows for transaction-level, near real-time reconciliation, safeguarding the financial institution from clients spending funds they have not yet reconciled.”

• CSI announced their Mid-Year 1H2025 Fiscal Review with 18 new core deals and a 27% increase in its Hawthorn River customer base.  Nice work!!! 💪

• Zum Rails announced an expanded partnership with Fiserv as the primary transaction processor for Zūm Rails’ payments gateway enabling US businesses to facilitate accounts payable and receivable transactions, merchant onboarding, reporting, reconciliation and fraud management without relying on a bank or other third-party provider.  Combining Zum Rails’ payments gateway with the Fiserv payment facilitator model gives businesses a way to move money through every major U.S. payment network, among them Visa and Mastercard, the Automated Clearing House (ACH), FedNow, WEB Debit and PayPal.
  • “As companies look for new ways to own and strengthen their relationships with customers, there’s growing energy around embedding financial services directly within a software platform,” said Sunil Sachdev, Head of Embedded Finance, Fiserv. “By making capabilities from our merchant acceptance, banking, and card issuing businesses available to clients and partners through a curated set of APIs, we are helping these clients expand their service models, build deeper relationships with merchants, and significantly expanding the revenue potential associated with each relationship.”

• Our friends at FinGoal have linked up with Tyfone to provide community financial institutions on Tyfone’s digital banking services to deliver ultra-personalized financial insights to account holders.  Uncle Sean is not as smart (and not nearly as cool) as David Nohe and Jared Kopelman, but this sure smells like a great fit; and certainly a win for community FI’s! 🤘

• 💥 Congratulations are certainly in order as ZSuite Technologies continues their seemingly unstoppable march across the US! 🚀  This week Fulton Bank, N.A. (FDIC 7551; Total Assets $31.6B) announced the launch of Fulton Deposit Escrow Management.

• Prelim and IntraFi have partnered together to simplify reciprocal deposit account onboarding.  Very important as regulatory bodies continue their emphasis on liquidity and uninsured deposit exposures. 😊

• Orlando CU (Charter 68706) is launching a new direct bank platform appropriately named Digital Branch beginning Oct 31, 2024.  I couldn’t find much more detail on this, but Uncle Sean will be following the launch closely.    

• Ocean Bank (FDIC 24156; Total Assets $6.4B) joins NCR Atleos’ Allpoint Network which currently supports over 40,000 surcharge-free ATMs throughout the US.

• Lumin Digital and Rego Payment Architectures, Inc. announced a strategic partnership to offer Rego’s white-label family banking solution to banks and credit unions using Lumin’s digital platform.

• NCR Voyix (NYSE: VYX) has completed the previously announced sale of its digital banking unit and will be rebranded as Candescent.

• Oportun (Nasdaq: OPRT) announced an agreement to sell its credit card portfolio to Continental Finance.
  • Recall earlier this year (announced in Feb and closed in May) where Continental Finance also acquired the Today Card portfolio from Elevate Credit and Capital Community Bank.

 
 
Random Uncle Sean stuff:

• This looks pretty cool – Field & Stream brand has launched a new lodging / hospitality platform with a hunting and fishing lodge vibe equipped with modern conveniences targeting U.S. markets rich in natural experiences such as national parks, mountains, and ski towns.  Check out their first lodge located in Bozeman, MT.  I want to go!!!
• Okay – I may have to get one of these for nostalgia sake 🍔…  Wendy’s is releasing a "Krabby Patty Kollab" cheeseburger and a “Pineapple Under the Sea” flavored Frosty in honor of SpongeBob SquarePants 25th anniversary…  Parents everywhere can relate - all of our kids enjoyed SpongeBob but our oldest son, Marshall, was completely and utterly addicted to SpongeBob when it first came out.  I still remember the song all too well as it is seared into my memory from hearing it at least 1,000,000 times – LOL… ❤️🤠
  • 🎶 “Are you ready, kids?  Aye, aye Captain!  I can’t hear you!  AYE, AYE, CAPTAIN!!!  Ohhhhhhhh….  Who lives in a Pineapple under the sea?  SPONGEBOB SQUARE PANTS!!!  Absorbent and yellow and porous is he!  SPONGEBOB SQUARE PANTS!!!!  If nautical nonsense be something you wish.  SPONGEBOB SQUARE PANTS!!!  Then drop on the deck and flop like a fish!!!” 🎵 🤣  Play it again, Dad!!! ❤️
• And of course I have some Dad / Bad jokes and Uncle Sean wisdom (or lack thereof) to share:
  • The police just left…  Apparently if I’m going to walk around the house naked, I have to do it inside…  😮🤣
    • Speaking of nakedness…  How do nudists clean their glasses??? 🤔
  • The years have been good to me… It’s the weekends that have done the damage!!! 🤪
  • I really like oysters, but I have to wonder about the first person to ever open one and immediately think, “Mmhmmm, this pile of snot looks delicious!”  Don’t even get me started on the first person to eat a chicken egg after seeing where it came from…  And pretty sure the person who first discovered milk had some serious explaining to do… 😬😂

 
 
Have a GREAT weekend – don’t forget to go outside and play; 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!!!
 
It’s the first official week of Fall - the temps here in Texas are finally starting to come down and feel more like football weather (at least in the mornings anyway)!!! 🏈🍂  Here is the Uncle Sean Update for 9/27/24:
 

• 🙏 Keeping our friends in FL, GA, and surrounding areas in our thoughts and prayers as Hurricane Helene made landfall as a Category 4 hurricane bringing significant flooding, widespread power outages, and wind damage to the area.  Hang tough and stay safe!

 

• Pathward, N.A.  (FDIC 30776; Total Assets $7.5B) is renaming its BaaS business line to "Partner Solutions" highlighting Pathward’s dedication to partnership and collaboration on solutions with partners.
  • The bank is taking a step further with a renewed emphasis on their core differentiators such as experience, operational excellence, and mature risk / compliance infrastructure. Very cool marketing strategy; and one I suspect we will see more of from Sponsor Banks that are doing BaaS / embedded finance well.  I love it!!! 😎👍

 

• 👀 And another CU acquisition of a bank…  This week we have ESL Federal Credit Union (Charter 24563; Total Assets $9.3B) to acquire Generations Bank (FDIC 16040; Total Assets $401M) for $26.2M.
  • Keeping score…  This ties the record from 2022 with 16 announced acquisition of a bank by a credit union thus far in 2024 (compared to 11 in 2023, 16 in 2022, 13 in 2021, 7 in 2020, and 16 in 2019) – source: FedFis.

 

• DailyPay crosses the pond with their first international expansion into the United Kingdom.  Congrats! 🎉

 

• PNC Bank (FDIC 6384; Total Assets $553B) enters into data access agreement with Plaid to allow PNC customers to “securely connect and share financial data to their chosen financial applications through Plaid” applications.

 

• BankNewport (FDIC 18129; Total Asset $2.8B) is live on the nCino platform utilizing Commercial Lending, Marine Lending, Deposit Account Opening, and Portfolio Analytics; and is reporting up to 90% accelerated digital account opening process in some cases – just three weeks post-implementation.  Nice!!! 🚀

 

• No doubt in response to successful fintech innovation, Bank of America to launch family banking solution being developed internally.  Banking Dive has a good summary.

 

• Cross River Bank to power Forward's embedded payments solution to SaaS providers.

 

• iWallet announced that it is the first company to enable Zelle® invoicing for small and medium-sized enterprises (SME’s) via iWallet’s “patent-pending P2B (person-to-business) notification system that allows SMEs to send and track invoices efficiently, thereby saving them time and money.”

 

• MANTL announces Business Deposit Origination for credit unions – yes, streamlined business NAO at credit unions.  Check it out at www.mantl.com/business-deposit-origination-cu/.

 

• Nasdaq Verafin announces enhancements to its AI based Targeted Typology Analytics to help banks continue to enhance their AML/CFT strategies.  Definitely a hot topic these days!!! 😉

 

• Visa to acquire Featurespace real-time AI-based fraud and financial crime prevention platform serving the financial services industry.

 

• Galileo launches Secured Credit with Dynamic Funding allowing banks, fintechs, and other businesses to target underbanked consumers with secured credit offerings managed through a single “available to spend” balance in a single account via automated movement of funds between debit and credit accounts.  

 

• Found selects Marqeta to power their existing business debit card that is focused on SMB’s and self-employed professionals. 

 

• Swaystack (onboarding and engagement platform) announced integration with Q2 Digital Banking Platform.

 

• Rumor Mill:
  • 👀 Bloomberg is reporting that Chime has hired Morgan Stanley to lead its proposed (no official confirmation) IPO…  PYMNTS has a good summary article.

 

• A few personnel moves:
  • Marqeta announced Fouzi Husaini as Chief Artificial Intelligence Officer.
  • Thread Bank picks up Michael Farrell as Chief Financial Officer.

 

• Notable FinTech funding for the week:
  • Mesa (homeowner membership platform) emerged from stealth this week with $9.2M in Capital consisting of $7.2M Seed Round and $2M in venture debt.  Mesa’s first products are the Mesa Mortgage Marketplace (origination rewards) and the Mesa Homeowners Card visa open-loop credit card.

 
 
Random Uncle Sean stuff:

• So we have a lot of bugs here in East Texas…  I mean A LOT OF BUGS!!!  Consequently, we have quite a few toads and frogs that visit our house every night.  One little toad fellow in particular has been hanging around for several months now.  You might ask, how can you tell one toad frog from the next???  Well, let’s just say this little fella is unique in the fact that he is only about half grown and might have an eating disorder as he is the fattest little toad I think I have ever seen - I mean he is an absolute chunky-chunk!!!  In fact, he doesn’t even hop – he just waddles out of the way. 🤣  Aunt Patty and I affectionately refer to him as “Fat Boy” and he hangs out on our porch almost every night.  It has become a nightly ritual before bedtime for us to check outside to see if Fat Boy is there; and he almost never disappoints. 🐸😊
• And here they are…  Some Dad / Bad Jokes to wrap up the week:
  • I’m not “old” per se…  But there are days where I feel like I’m aging like a fine banana! 😅
  • Technically speaking….  A “butt load” of underwear is exactly one pair… 🙄😁
  • If a word was misspelled in the dictionary, how would we know??? 🤷‍♂️🤔
  • Shout out to Bruce Lee.  A man who studied art, philosophy, and poetry and decided the most beautiful form of self-expression is to punch someone in the face! 😮😂🤣
  • I gave Aunt Patty an apple and she told me she preferred pears…  So I gave her another apple…  🤠
    • Not really a Dad Joke, but more of some Dad wisdom…  As the saying goes - sometimes in the middle of nowhere is where you find the center of everything… 😊❤️

 
 
Have a GREAT weekend, go outside and play, 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.