Uncle Sean's Update - 12/2/22

Happy Friday!!!
 
There is a lot to cover after taking off last Friday for Thanksgiving (I am officially tired of leftover turkey now), so let’s get to it!  Here is the Uncle Sean Update for 12/2/22:

• In case you missed it – the BHB BaaS Association has been BUSY!!!!  Recent updates include:
  • Launched the BaaS Channel inside of the Bankers Helping Bankers platform for banks and fintech companies to come together and connect. WOW – that’s cool!!!
  • Released the FinTech Banking Definitions in a simple and easy to read document.
  • And rumor has it, there is much more to come in the following weeks from the BHB BaaS Association!

 

• And here is some very good news - the FDIC released the Quarterly Banking Profile report for 3rd Quarter 2022.  Key highlights include:
  • Increase in Net Income of 11.3% from 2Q and 3.2% YoY.  Primarily due to increases in Net Interest Income with Net Interest Margin (NIM) finally increasing to 3.14% - WOOHOO!!!!  😊
  • Deposits continue to trend down but remain well above pre-pandemic levels.
  • Unrealized Losses on Securities continue to increase as market rates continue to rise.  This could potentially create challenges next year for institutions that need to sell securities for liquidity purposes as we continue to see interest rate hikes.
  • Loan growth is strong (9.9% annual increase in loan balances is the largest in the history of the QBP) and broad based while asset quality remains good.

 

• The Sam Bankman-Fried (SBF) and FTX debacle continues to dominate headlines.  FTX lawyers unload on SBF calling FTX the “personal fiefdom” of former CEO Sam Bankman-Fried; and a “substantial amount” of FTX’s assets “have either been stolen or are missing,” an attorney said, adding, “We have probably witnessed one of the most abrupt and difficult corporate collapses in the history of corporate America.”  You can track the BK case here at https://cases.ra.kroll.com/FTX/.
  • Surprisingly, SBF continues his public interviews and commentary despite his legal team pleading him to remain silent.
    • Uncle Sean is guessing SBF doesn’t place much emphasis on the Miranda warning, “Anything you say can and will be used against you in a court of law.” 😲
  • Meanwhile….:
    • BlockFi files for Chapter 11 Bankruptcy citing FTX contagion.
    • Genesis is still trying hard to avoid bankruptcy amid the FTX mess, but has hired restructuring attorneys.

 

• BM Technologies (fka BankMobile) is working on resubmitting its merger application with First Sound Bank pending questions posed by regulators regarding “a better understanding of the company’s risk management, teams, policies and processes regarding the merger” with a goal of closing in 2023.

 

• Pomelo selects Galileo to power their Charge Card for international remittance and credit building for US customers.

 

• Quaint Oak Bank partners with Cable for comprehensive financial crime compliance oversight across the banks fintech partner portfolio.

 

• Well that didn’t take long - GloriFi is shutting down per their website stating “Recently, With Purpose, Inc. d/b/a GloriFi, has experienced a series of financial challenges related to startup mistakes, reputation attacks, the declining economy, and multiple negative media stories. As a result of developments late last week, the Board of Directors and leadership of GloriFi have come to the heartbreaking conclusion that we need to begin winding down the company’s operations. Your GloriFi debit Mastercard® will be terminated on November 23, 2022. Your GloriFi Checking account will be closed on December 6, 2022.”

 

• Immigrant banking-focused provider Stilt and related credit infrastructure provider Onbo appear to have been shut down after raising $14M in Series A plus a $100M debt facility back in back in March of this year.  Onbo’s site is offline and Stilt’s website is not accessible.

 

• Atomic (payroll connectivity infrastructure) announced that their direct deposit setup and switching solution, Deposit, is now accessible through the Jack Henry Banno Digital Platform. 

 

• Temenos makes an undisclosed minority investment in Mbanq to accelerate and expand Banking-as-a-Service offering in the US.

 

• The money keeps flowing – check out these recent FinTech fundings:
  • Prosper Marketplace (peer-to-peer lending platform) raised $75M in capital
  • Novo (neo business bank for SMB’s) raised $35M in Series B Extension to bring the total Series B to $125M at a $720M valuation.
  • Taktile (insurance and lending automated decision platform for underwriting) raised $20M in Series A funding round noting, “This round will help us further accelerate our ongoing expansion in the U.S., where we have seen rapid growth, increasing our client base by 4x since the end of last year.”
  • Totem (neo bank for Native Americans) raised $2.2M pre-seed funding.
  • Strategic Risk Associations (SRA – integrated risk and performance management platform for FI’s) raised $12M in Series B round.
  • Greenwood (digital banking platform for Black and Latino individuals and businesses) raised $45M in capital in an undisclosed investment round; and also announced the launch of Elevate, a membership based platform to enhance career and lifestyle for community members.
  • Treecard (ESG focused spending app with US debit card) raised $23M in Series A funding round.
  • Teampay (business spend management platform) raised $47M in capital consisting of $35.25 million in Series B equity plus $11.75 million in debt.
  • Shield (communication compliance platform for banks) raised $20M in Series B
  • AllWork (gig/freelancer management and payment platform) raised $4.9M in Series A funding.
  • X1 (smart credit card platform) raised an additional $15M Series B bringing the total Series B to $40M.

 
 
Random Uncle Sean Stuff:

• Check out these pics and videos of the Mauna Loa volcano eruption in Hawaii – that is amazing!
• IT’S OFFICIAL (Whoa Nelly!!!) - College Football Playoffs will expand to 12 teams beginning in the 2024-2025 football season.  I love the fact that all 6 conference championship teams get an automatic playoff berth – regardless of ranking.
• I will be channeling my inner Clark W. Griswold this weekend as I attempt to put up our outdoor Holiday lights – which me luck!!!!!  😊
• I don’t mean to brag too much, but last Tuesday afternoon I paid $2.55 per gallon for gas at Buc-ee's in Temple, TX!!!!
• And some quick Uncle Sean wisdom - A potato wearing glasses is a spectater…  😝

 
 
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.