Uncle Sean's Update - 11/8/24

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.