Uncle Sean's Update - 10/17/25

Happy Friday!!!
 
It was a shorter week for many due to Columbus / Indigenous Peoples’ Day, but still some notable headlines.  Here is the Uncle Sean Update for 10/17/25 (click here to subscribe for FREE):
 

• ❤️ Uncle Sean is happy to report that Smiley Technologies has renewed their Sponsorship of Bankers Helping Bankers (BHB)!!! 🎉
  • “Smiley Technologies lives and breathes community banking, and their renewal is proof of that commitment,” said Matthew Smith, CEO of Bankers Helping Bankers. “Their support helps us keep building the safe space where bankers connect, innovate, and fight for the future of Main Street.” 🚀

 

• 👀 UFS (core banking, digital, payment solutions, and advisory services) continues their push into managed IT services with the acquisition of BankOnIT in support of the evolving IT needs of community FI’s. Check out their cool video to hear from their leadership on how the partnership brings enhanced value to community banks.
  • This follows the acquisition of Safe Systems (another IT managed services provider) back in Aug of 2024. At that time, Safe Systems served about 260 FI’s and gave UFS a footprint of about 400 FI’s for IT and security services.

 

• 😲 Wow – that was fast!!! The OCC has granted preliminary conditional approval of the de novo bank charter for Erebor Bank, National Association on Oct 15th. Erebor Bank plans to “target its products and services to technology companies and ultra-high-net-worth individuals that utilize virtual currencies. The Bank plans to offer a variety of lending and deposit products and other related services. The Bank plans to hold non-asset backed virtual currencies on balance sheet…” 
  • Based on this Erebor Bank, N.A.: Charter Application dated June 11, 2025, this approval was granted in roughly 4 months (yes that’s super-fast; particularly for a national bank involved in novel activities – i.e. crypto-asset related activities – AML anyone??? 😬). Keep in mind that FDIC approval is still pending…

 

• Okay…  Here comes an Uncle Sean “Off the Rails” moment, so feel free to scroll down… 😊
  • I originally wasn’t going to comment on this, but I will… 😁 I’m already tired of hearing about “cockroaches” in the NDFI / private credit markets.  No disrespect intended towards Mr. Jamie Dimon (who started the cockroach commentary in response to JPM losses stemming from Tricolor and First Brands fraud related bankruptcies), but he is paid extremely well to be the Nation’s Chief Pessimistic Risk Officer. 🙄 And I am assuming that his cockroach comment may have been more directed at his own staff more than the market as a whole.
    • These were instances of fraud – NOT systemic asset quality problems that the broader media seems to be loathing for… Yes, there were two other non-related fraud issues this week as well (I think that makes 4).  The $ amounts are not inconsequential but are also not largely material considering the specific bank equity capital positions, credit loss reserves, and resulting market cap losses this week for those publicly traded banks.  Certainly worth keeping an eye on; and impacted banks (as well as others) are undoubtedly reviewing their NDFI concentrations as well as underwriting processes and portfolio monitoring for improvement (as they should). But this is not a systemic asset quality meltdown moment as the broader media is intent on portraying (in my unsolicited opinion).
  • 👉 The existence of NDFI lending is not within itself a catalyst for alarm as there are many other variables to consider related to credit structure and collateral. Remember your bond underwriting classes – it’s not just Probability of Default (PoD), but Loss Given Default (LGD) that matters.  That’s precisely why loan structure, reserves, collateral, and hedging are so important – and bankers are largely damn good at this. 🏆 But that doesn’t stop knee-jerk market reactions… 🤷‍♂️
  • This Banking Dive article is a great summary of events with a TD Cowen analyst referencing NDFI concerns as the “topic du jour.” This too shall pass… 😊

 
A bit of a deeper dive here as “open banking is dead…  Long live open banking…” but from an aggregator context as a Consumer Reporting Agency:
 

• Plaid announced the launch of LendScore credit risk scoring model (1-99 score) utilizing real-time cash flow data and unique financial account connection insights to supplement traditional underwriting / credit scores. Targeting cashflow analytics for subprime and near-prime “drove a10-20% relative risk reduction” without reducing originations.
  • The big takeaway here (to me anyway) is the inclusion of network insights, “which provides context on the types of apps someone is connected to on the Plaid Network, within a certain time period, and how long they’re active on each service.” Stating that the model picks up on early indicators of changing financial habits and emerging risk.
    • Recall where Plaid already provides Consumer Report powered by Plaid Check, which is Plaid’s Consumer Reporting Agency, allowing lenders to integrate cash flow data into their lending workflows via secure API and no-code dashboard.

 

• ICYMI last week… Yodlee also entered the Consumer Reporting Agency arena with the launch of Yodlee Credit, LLC.

 

• For more info on cashflow analytics, check out Jason Mikula of Fintech Business Weekly recorded episode How Modern Lenders Leverage Cashflow Analytics featuring EDGE and MX (emphasis on sizeable data lake, maintenance, and innovation – with credit bureaus providing look-back data while cash flow analytics is more real-time designed as a supplement; as well as credentialed versus non-credentialed data and some good op-ed at the end regarding open banking). 👍
  • Food for thought… I know this is a little bit of a different spin, but does anyone else remember the launch of Chase Media Solutions by JPMorgan back in early April 2024….??? 🤔

 
And now back to the rest of the Update 😊:
 

• Galileo (Sofi’s tech platform) joins the Amazon Web Services (AWS) Partner Network. Businesses across industries can now leverage Galileo’s platform on AWS to build, launch, and scale modern financial experiences.
  • Sandy Weil Chief Revenue Officer at Galileo stated, "By joining the AWS Partner Network, we’re meeting businesses where they already are, making it faster and easier for them to access our financial technology and bring new financial products to their customers." Galileo’s API-based platform handles everything from card issuance and real-time transactions to fraud prevention and embedded payment capabilities. 💥

 

• 👉 Circle K (yes, the nationwide convenience store) leans into embedded finance with their strategic partnership with Car IQ (vehicle-based payment technology) to launch Circle K Pro Digital+, a digital fleet fuel spend platform with virtual cards all accessible from the mobile app (instant driver onboarding and offboarding). Accepted at Circle K, other major fuel brands, toll networks, and anywhere Visa is accepted. 🚚
  • Check it out at Digital+ | Circle K Pro.

 

• More payments headlines… And the flex 💪 of the week… The RTP® network, instant payments system operated by The Clearing House, set a new single-day record by processing 1.8M transactions valued at $5.2B on Oct. 3 reflecting “the growing adoption of instant payments by financial institutions, businesses, and consumers who are seeking faster, more reliable money movement.” 🚀

 

• First Internet Bank of Indiana (FDIC 34607; total assets $6B) partners with Parlay Finance to deploy Parlay’s AI-native Loan Intelligence System allowing the bank’s SBA lending operations to eliminate manual tasks and gain deeper insights for loan decisioning. 👏

 

• BankJoy (digital banking provider for CU’s, banks, and neobanks) partners with InvestiFi to provide digital investing opportunities for BankJoy’s FI customers to offer to their members.

 

• Notable FinTech funding for the week:
  • Nova Credit (credit infrastructure and analytics) raised $35M in Series D funding round.
  • Telcoin (seeking to become the first federally regulated digital assets bank in the U.S.) raised $25M as part of an ongoing pre-series A round. The funding enables Telcoin to meet capital requirements for its conditionally approved Nebraska Digital Asset Depository Institution charter (ref Feb 2025 article - Telcoin Granted Approval to Open Nebraska’s First Digital Asset Bank).
  • Upgrade (responsible consumer credit and banking products) raised $165M in Series G at a $7.3B valuation. The company has been focusing on home improvement and auto financing, areas that surpassed $2B and $1B, respectively, in total cumulative loan originations earlier this year.
  • Deel (global HR and payroll platform) raised $300M in Series E at a whopping $17.3B valuation marking “the company’s third straight year of profitability and its first $100 million revenue month. Earlier this year, the company surpassed $1 billion in annual recurring revenue. Deel now serves 37,000+ businesses and 1.5 million workers across 150+ countries, processing $22 billion in payroll annually.”

 
 
Random Uncle Sean stuff:

• 🎃 It’s that time of the year!!!  Congrats to Brandon Dawson of Santa Rosa, CA for winning the 52nd World Championship Pumpkin Weigh-Off with a gourd weighing in at 2,346 pounds!  Gonna’ need a chainsaw to carve up that jack-o-lantern!!! 😊
• Okay – let’s wrap it up with some Dad / Bad Jokes:
  • Here lately, my daily exercise routine consists of running out of patience. 🤠🏃‍♂️‍➡️
  • Parmesan cheese is really just spaghetti confetti! 🍝 😋
  • For my daughter, Claire 🫶…  The best place for learning is the hippocampus… 🧠👩‍🎓😅
  • And last but not least a shout out to my IT and developer friends… 
    • “DevOps reality” - no matter how hard you try to make something idiot proof, eventually a better idiot will come along (I feel personally attacked)!!! 😂🤣

 
 
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.