Uncle Sean's Update - 10/21/22

​Happy Friday!!!
 
Finally got a little rain and some cooler temperatures here in Texas this week – and just like that, everyone in the entire state is busy making chili! 😊  Here is the Uncle Sean Update for 10/21/22:
 

• MOCA is making headlines again this week by partnering with Montgomery County Child Protective Services and offering MOCA’s youth/teen card to children in the foster care system.  MOCA’s card platform ensures safe and secure access to funds with highly advanced controls making sure that the child receives and uses the card for the correct purposes.  GREAT WORK MOCA!!!!

 

• Data Center Inc. (DCI) announced that Tipton Latham Bank has selected DCI as their new core processor (iCore360® cloud-based core) as well as the iCoreGO® digital suite.  Check them out at datacenterinc.com – some really good people doing really good things for community banks!

 

• And so it begins…  JPMorgan Chase announces early access to direct deposit for some customers as they hope to attract more users to a no-overdraft checking account.  This is clearly a calculated response to fintech pressures which really have been an overall positive for consumers; and even the biggest of banks are now having to concede once lucrative fee income (OD/NSF) and ACH risk on payroll files.

 

• Super (fka Snapcommerce) announced the launch of SuperCash, a credit builder / cash back Mastercard secured charge card issued by MRV Banks with hefty cash back rewards – up to 10% on select transactions.

 

• Propel announced a five-year agreement with Pathward, N.A. (fka MetaBank) to be Pathward’s primary consumer lending-as-a-service partner.

 

• Fiserv (Nasdaq: FISV) and IncumbentFI partner together to enable FI's and FinTech's to empower cardholders with programmable payments.  Basically allows the cardholder to link multiple funding sources (DDA, HSA, rewards, crypto, LOC, etc.) to a single card and prioritize funding based on type of transaction.  Also allows the cardholder a set amount of time post-purchase to designate which funding source to settle against. 
  • Bangor Savings Bank is currently rolling out programmable payments to introduce microlending as a funding source / solution to replace overdraft.

 

• Jack Henry (Nasdaq: JKHY) along with Mastercard and Finicity announced an agreement where Banks and CUs can offer their accountholders the ability to see all of their financial accounts (both within and outside of the primary financial institution) in one place solving for financial fragmentation.

 

• Apto Payments (card issuing platform) announced the addition of Patriot Bank as a new bank partner.

 

• Treasury Prime (BaaS Sponsor / Connector) adds First Internet Bank as a new sponsor bank.

 

• FIS (NYSE: FIS) announced the appointment of Stephanie L. Ferris as President and CEO effective January 1, 2023.  Ferris takes over from Gary A. Norcross who will now assume the duties of Executive Chairman of the Board.

 

• Hmmm – so this happened.  Green Dot Corporation (NYSE: GDOT) names George Gresham as President and CEO succeeding Dan R. Henry who was terminated.

 

• And more CEO changes - CEO of GloriFi resigns after some rather less than flattering reporting from The Wall Street Journal.

 

• Ahh, the old Credit / Financial Risk Management superfreak in me just can’t let this go…  To my Ag Banker friends (actually all bankers as this potentially has far reaching implications), especially Chief Credit Officers and Portfolio Managers – I know y’all are all over this, but keep a close eye on the Mississippi River flow / drought concerns as sections of the Mississippi River approach low water levels not seen in more than three decades; and has the potential to impact a very wide range of counterparty exposures.  This Illinois Farm Policy News article on Mississippi River Flow Concerns is worth a quick read as it highlights concerns over disrupted agriculture supply lanes and water levels are projected to drop even further – forcing alternative transportation to railway and trucking with the result of skyrocketing commodity pricing in an already high inflationary environment.
  • Take a quick look at this American Farm Bureau Federation report highlighting supply chain slowdown / interruptions on the Mississippi River for more detail on the financial impacts of grain barge movements with exponential increases in cost per ton due to backlog and reductions in volume requirements.  DANG!!!  😲
  • Here are some timeline / satellite images from space showing drastic changes over just the last three months.
    • Keep in mind that Food and Agriculture Sector is one of 16 critical infrastructures for the United States…

 

• Notable FinTech funding for the week:
  • Mercantile (custom branded credit card platform for SMB’s) raised $22M in capital including $15M in Series A.  The Mercantile Mastercard credit card is issued by Hatch Bank.
  • Ualett (receivable advance for gig / independent contractors) secured a $50M credit facility to continue US expansion.
  • Landis (proptech offering customers an all cash purchase with customer rent option for up to 2 years) raised $40M in Series B funding round.
  • Banyan (automated expense mgmt. platform) raised $43M in Series A funding round.
  • Credit Key (BNPL) raised $115M in Capital including a $100M debt facility and $15M in equity financing.
  • Sezzle (BNPL) signed a new $100M credit facility.
  • TripActions (corporate travel, card, and expense mgmt. platform) raised $304M in Series G with a valuation of $9.2B.

 
 
Random Uncle Sean Stuff:

• Apparently, we are only 2 more UK Prime Minister's away from Christmas!  LOL!!!  Sorry – I guess that was rather “cheeky” of me… 😝
• Hey - here is some unexpected positive news….  Due to our crazy inflationary environment, the IRS announced tax inflation adjustments for 2023 tax year with the big news being about a 7% increase in the standard deduction; and an increase in tax brackets of about 7% across the board. 
• Okay, so I ran across some good ole Chuck Norris jokes this week and laughed way too hard…  I know they have been around for years, but these are too good not to share – here are  a few of my favorites:
  • Chuck Norris can blow bubbles with beef jerky.
  • Chuck Norris can gargle peanut butter.
  • Chuck Norris can kill two stones with one bird.
  • Chuck Norris can lead a horse to water AND make it drink.
  • Chuck Norris can divide by zero (Uncle Sean loves that one - #DIV/0! for the Excel Warriors out there – you know who you are!).
  • Chuck Norris can kickstart a car.
  • Chuck Norris makes onions cry.
  • And lastly…..  Covid has to get Chuck Norris booster shots.

 
 
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.