Uncle Sean's Update - 10/14/22

​Happy Friday!!!
 
Trying to get this week’s Update out early as there is a REHEARSAL DINNER and FAMILY WEDDING we need to get to – CONGRATS to Tanner Mayo and Bre Berich for your upcoming nuptial celebration - WOOOHOOOO!!!!  And now, here is the Uncle Sean Update for 10/14/22:
 

• Bankers Helping Bankers is at it again announcing a Partnership with Trust Exchange to offer a secure and scalable vendor management platform to community banks!
  • "Bankers Helping Bankers was built on the premise that it should be easier for bankers to find their ideal technology partners," said IBAT President and CEO Christopher Williston VI. CAE. "Finding good partners is just half the battle. We believe that giving community bankers a network-enabled solution for maintaining and monitoring their third-party vendor relationships is an essential next step in our delivery of value."

 

• Michael Hsu, Acting Comptroller of the Currency, in an interview with Reuters explained that his caution over banks partnering with fintechs is not meant to stifle those arrangements, but rather reflects his concern that firms must adequately gauge their risks.  "Look, bank-fintech partnerships, they're here to stay. I'm not trying to do away with them," Hsu said on Wednesday. "This is the future, so let's do the future right."  To which Uncle Sean says “HELL YES!!!!”  LOL!
  • Hsu went on to explain that his concern over banks and fintechs joining forces is the possibility that responsibilities for monitoring risk can become muddied when multiple firms, sometimes with different incentives, share responsibilities.
    • Yessir – Uncle Sean believes that Hsu is referring directly to potential compliance concerns in the middleware / connector space….  And I completely agree. 😊

 

• Speaking of…  The OCC released their Bank Supervision Operating Plan for 2023.  No surprise to anyone that third-party risks including cybersecurity and fintech are a major emphasis (compliance anyone?) – and climate related financial risks (particularly for large banks) makes the list.  You can read the 4 page doc here.

 

• Check this out - The Apple ecosystem continues to evolve deeper into consumer finance.  This week Apple announced a new savings account for Apple Card that allows users to save their daily cash rewards in a high-yield savings account from Goldman Sachs.  Now this is starting to get pretty cool:
  • It is worth noting that this account is NOT closed to just Apple CC cash rewards – “users can also deposit additional funds into their Savings account through a linked bank account…”
  • Actual Yield has not been disclosed, but Marcus by Goldman Sachs is offering 2.35% APY for their online savings account at the time I am writing this.
    • Hmmm…  1-3% daily cash back plus 2.35% yield, and I don’t have to do anything….   Starting to look pretty compelling to Uncle Sean!

 

• Any press is good press, right???  Well – except for this PayPal blunder over the weekend.  PayPal had initially released an updated AUP stating they would unilaterally fine users $2,500 for spreading “misinformation.”  However, after significant backlash and criticism, PayPal issued a statement stating the AUP update had gone out in error and was a mistake….  Mhmm…

 

• Edward Jones withdraws their ILC bank charter application citing “the current environment” and “recent conversations” with the Federal Deposit Insurance Corp. (FDIC) as its reasons for abandoning the effort.

 

• Brex (corporate card and spend management platform) laid off 11% of their workforce; and their CFO, Adam Swiecicki is leaving to join Rippling (business workforce and spend management platform).  This follows a June announcement from Brex to pivot away from startups to focus on more established SME’s.

 

• The Wall Street Journal is reporting that NYDIG laid off about 1/3rd of its workforce last month and a reshuffling of the C-suite despite stating the balance sheet is the strongest it’s ever been.

 

• Andrei Cherny, the CEO and cofounder of fintech company Aspiration, is stepping down.  Aspiration also announced Olivia Albrecht as the new CEO.

 

• Meanwhile, the Social Security Administration announced an 8.7% Benefit Increase for 2023 due to persistent inflationary pressures.  Also known as cost-of-living adjustment (COLA), this follows a 5.9% increase last year and is the highest increase in 40 years.  😲

 

• Google selects Coinbase to take cloud payments with crypto in early 2023.

 

• BankiFi (business banking solution for FI’s) signs Axiom Bank to enable Axiom’s SMB customers to better track and manage their business finances using BankiFi’s Open Cash Management platform.

 

• WOW – guessing that fintech funding has NOT dried up as this week was BUSY…  Notable FinTech funding for the week:
  • Step (teen credit builder) raised $300M in debt funding to build out their platform including crypto-investing starting with bitcoin and expanding to stocks and other cryptocurrencies soon.  Step also unveiled Step Money 101, an easy to use financial literacy (finlit) program for young adults.
  • Airwallex (cross-border business banking) raised $100M in Series E-2 extension round at the same $5.5B valuation following the first $100M extension in Nov 2021 after the original $200M Series E in Sep 2021.
  • OatFi (API enabled / embedded working capital infrastructure for B2B payments) raised $58M in Capital consisting of $8M in equity and $50M in debt financing.  As an old credit and sales finance guy, Uncle Sean finds this API-powered business credit stack very interesting - check them out at oatfi.com.
  • Moon Mortgage (crypto as collateral lending platform) raised a $3.5M Seed Round to fund their Crypto Mortgage loan product with custody services provided by Anchorage Digital.
  • Arro (alt credit platform to provide access to low-interest credit through a gamified app) raised $10M Seed Round.
  • Nickels (white-label FI product to help customers manage their finances ) raised $4M in Seed funding.
  • Northstar (financial wellness / PFM platform) raised $24.4M in new capital with the mission to bring financial guidance as a universal employee benefit.  Valuation was not disclosed, but this TechCrunch article references a significant up-round; and 5X YoY revenue growth.
  • GoHenry (US and UK provider of prepaid GPR debit card and app for kids) raised $55M in capital to continue European expansion.
  • Astra (embedded payments platform for FI’s, fintech’s, and enterprises) raised $10M in Series A funding round.
  • NorthOne (neo business bank) raised $67M in Series B funding round.  Valuation was not disclosed, but the company did state that revenue grew “4-5x” over the last 12 months while customer growth was “in line with revenue growth.”

 
 
Random Uncle Sean Stuff:

• HOLY COW – allergy season in the Texas Hill Country is not for the faint of heart!!!!  RAGWEED is an absolute killer - UGH!!!!  Allergies are so bad right now that local drug dealers are busy converting Meth back into Sudafed!!!  LOL  😝
• Before I hightail it out of here to celebrate Tanner and Bre’s wedding, Uncle Sean has to lay down some Dad Jokes:
  • Does anyone else set their alarm extra early to make sure you have enough time to lay in bed and be angry about having to get up…???
  • You know when you buy a bag of salad and it gets all soggy and brown?  Well, cookies don’t do that…
  • Good puns make me numb, but math puns make me…. number… 
    • Oh C’MON – you know that was a good one!!!!  LOL!!!!

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