Uncle Sean's Update - 12/23/21

Happy Friday (errr - I mean Thursday) and Happy Holidays to all!!!!!
 
This week’s update comes out a little early as we will be closed Friday, Dec. 24th to spend time with family.  It’s a special time of year and I wish everyone all the best!!!  We will be publishing early next week too in advance of New Year’s Eve.  Meanwhile, don’t miss a chance to sign up here to have the Uncle Sean Update sent straight to your inbox each week – pretty sure even Santa gets it each week!!!!  Here is the Uncle Sean Update for 12/23/21:
 

• Equifax announced a process for incorporating BNPL into consumer credit reports beginning in the first quarter of 2022. 
  • I am very glad to finally see some enhancements coming as it was certainly needed.  Although BNPL “debt” is typically not a very big number per consumer transaction, Uncle Sean feels that timing has been a concern as credit usage is typically reported in arrears – and in the case of short-term BNPL, the “loan” may already be paid off by the time it is reported (maybe another nod to the speed of blockchain transactions and reporting – recall back in November where we talked about a company called Spectral and their non-fungible credit scoring platform – Hmmm…..).  Also, the current process seems extremely unfair.  Consumers can be penalized from a credit standpoint if you miss a payment, but no reward for on-time payments….
  • Payments Dive has a good write-up showing that TransUnion and Experian are not far behind.

 

• Manasquan Bank (FDIC #30470; Total Assets $2.6B) selects Bakkt for retail access to crypto-assets as part of an early adopter program which will ultimately “allow the bank’s retail clients to buy, sell and hold cryptocurrency through the bank’s mobile banking app.”
  • Very relevant note – a quick look into the FedFis Fintegration Ecosystem© (nice plug, right?) shows us that Manasquan Bank uses Fiserv for online and mobile.  Recall a few months ago where Fiserv announced the integration of Bakkt into the Carat merchant ecosystem with additional plans “to introduce Bakkt technology that supports consumers’ ability to buy, sell, and hold crypto assets to Fiserv financial institution clients.”  NICE!!!!!

 

• The CFPB shows some teeth this week and effectively shuts down LendUp as part of an agreed upon stipulated final judgement and order that requires LendUp to: 1) pay a $100,000 penalty, 2) stop issuing new loans, and 3) halt collecting on certain outstanding loans to harmed customers.   
  • “LendUp was backed by some of the biggest names in venture capital,” said CFPB Director Rohit Chopra. “We are shuttering the lending operations of this fintech for repeatedly lying and illegally cheating its customers.”  OUCH!!!!!

 

• Avadian Credit Union announced a definitive agreement to acquire Citizens State Bank in Vernon, AL (FDIC #22523; Total Assets $85M).  For those keeping score, this is the 13th deal for 2021 of a CU announcing the acquisition of a bank (source: FedFis).

 

• Congrats to Unity of Eatonville Federal Credit Union for being granted a federal charter and Share Insurance Fund coverage by the NCUA in Eatonville, FL!!!  The low-income designated Unity of Eatonville FCU expects to begin operations in early 2022.

 

• Similar to what we saw with the OCC, the NCUA published cryptocurrency guidelines for federally insured CUs authority to establish relationships with third-party providers that offer digital asset services to their members, including investments such as cryptocurrency.

 

• JPMorgan Chase is building out a blockchain payments system for Siemens' internal accounts via JPM’s Onyx blockchain unit.  While Siemens is the first anchor client, there is “a pipeline of clients for the Onyx system,” said Naveen Mallela, Onyx’s global head of coin systems.

 

• The US exodus of foreign banks continues (especially on the West Coast).  French owned BNP Paribas has agreed to sell Bank of the West to BMO Harris for $16.3B.  Banking Dive has a good article summarizing some of the recent US exits:
  • HSBC (Britain) divests a third of their US branch footprint
  • BBVA (Spain) sells out to PNC
  • MUFG (Japan) sells to US Bank

 

• Rocket (NYSE: RKT) announced an agreement to acquire Truebill for $1.275B in cash.

 

• Alt lender Oportun (Nasdaq: OPRT) has completed the acquisition of Digit and plans to operate Digit as an independent brand and subsidiary under the Oportun corporate umbrella. 

 

• Notable FinTech funding for the week:
  • Figmnet (blockchain infrastructure and staking platform) raised $100M in Series C funding round at a $1.4B valuation
  • Taptap Send (cross-border payments) raised $65M in Series B funding
  • Oportun (alt lender) closed a $150M credit facility secured by credit card receivables via the Oportun Visa credit card issued by WebBank. 
    • Somewhat ironically, WebBank is the lender behind the new Oportun revolving credit facility.  Makes me wonder why WebBank isn’t holding the receivables direct and paying Oportun the standard fintech “origination fee + interchange (and maybe even servicing fees)” as WebBank is already an CC FI issuer with $83M worth of CC Receivables as of 9/30/21 on schedule RC-C.  Probably (yes, Uncle Sean is speculating here) just the way the original agreement was written up; and this new two year credit revolver gives WebBank more interest income through indirect exposure (C&I versus Consumer CC).  But it is an interesting structure that allows WebBank to hedge against direct consumer CC exposure by controlling the definition of qualified receivables that are eligible for borrowing under the revolver.
    • Sorry – Uncle Sean tends to overly geek out on credit stuff and hedging because it’s FREAKIN’ AWESOME!!!!!  LOL
  • Ampla Technologies (alt financing for SME’s) raised $40M in Series A funding round
  • Ant Money (micro-investing rewards platform) raised $20M in Seed and Series A funding and also announced the acquisition of Blast (savings rewards for gamers)

 
 
Random Uncle Sean Stuff:

• 2 days until Christmas Day!!!!!!!!  There’s still plenty of time left for men everywhere to begin shopping!  Some of the clear benefits include:
  • There is significantly less inventory in stock which means choices are limited – thus saving a tremendous amount of time!
  • If you wait until next week to start Christmas shopping, there are a lot of good deals and parking is so much easier!
• Okay – I ran across this completely inappropriate Holiday Dad Joke, so of course I’m gonna’ share it (I haven’t been fired in several months, so I’m probably due anyway – LOL):
  • I was purchasing a Christmas tree when the cashier asked if I was going to put it up myself – I smiled and said, “nope, It’s going in the living room!”  HAHAHAHA!!!!
• And without further ado, we continue the Top 21 Countdown of Dad Jokes and crazy Uncle Sean moments (according to me) that I posted for 2021.  Here are #11 - #7:
  • #11.  Wikiwikiwikipedia is where I go to learn about DJ’s and Rap music.
  • #10.  I recently bought a toilet brush…  Long story short, I’m going back to toilet paper…!!!!
  • #9.  Aunt Patty asked me why there was a pile of clothes in the floor right next to the laundry basket….  Apparently, “I struck down a Jedi” was not a good answer.
  • #8.  It was a sad and disappointing day when I discovered my Universal Remote Control did not, in fact, control the universe….  Not even remotely.
  • #7.  The scariest thing to read in brail is “danger, do not touch” – LOL!!!!

 
 
HAPPY HOLIDAYS EVERYONE!!!!!!  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.