Uncle Sean's Update - 1/31/25

Happy Friday!!!
 
Don’t forget to sign up here to have the Uncle Sean Update delivered straight to your inbox every week!!!  Here is the Uncle Sean Update for 1/31/25:
 

• It’s Fed Week!!!  As widely expected, nothing happened – LOL!  The FOMC voted to maintain the target range for the federal funds rate at 4.25% - 4.50% and will continue to reduce its holdings of Treasury securities ($25B per month) as well as agency debt and agency mortgage-backed securities ($35B per month).  More info for the Fed Geeks like me 🤓:
  • Chairman Powell reiterated their wait and see approach as “the Committee will assess incoming data, the evolving outlook, and the balance of risks. We are not on any preset course.”  Additionally stating, “With our policy stance significantly less restrictive than it had been, and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance.”
  • During the Press Conference Q&A, Chairman Powell mentioned there is “probably some elevated uncertainty” related to the new administration policy shifts and what the resulting implications for the economy will be (specifically mentioning tariffs, immigration, fiscal policy, and regulatory policy).
    • Here are the links to Chairman Powell’s Press Conference Transcript (25 pages) and video (49 minutes).

 

• And more economic data late this week as the BEA reports GDP (first of 3 estimates anyway) came in at 2.3% for the 4th quarter driven in large part by consumer spending.  This comes in slightly below estimates and follows growth of 3.1% in the 3rd quarter.  Full year Real GDP for 2024 stands at 2.8% versus 2.9% for 2023.
  • Meanwhile, the BEA also reported the PCE price index at 2.6% with Core PCE coming in at 2.8% - both in line with Dow Jones estimates.  CNBC has a pretty good summary.

 

• 💪 Nacha flex – ACH payment volume and value reached across-the-board gains for 2024 with huge growth in Same Day ACH.  Per the release:
  • Overall, ACH Network payment volume rose 6.7% from 2023 to 2024, to 33.6 billion payments in 2024. The value of those payments was $86.2 trillion, an increase of 7.6%.
  • Same Day ACH payment volume topped the 1 billion mark for the first time ever, with more than 1.2 billion payments for the year. The value of those payments was $3.2 trillion. From 2023 to 2024, Same Day ACH volume soared 45.3%, more than double the growth rate from 2022 to 2023. 🚀

 

• 👀 Looks like T-Mobile Money is switching partner banks from Customers Bank to Coastal Community Bank beginning April 1, 2025.
  • Recall Dec 2023 where BMTX Vibe (student banking) split from Customers bank as a sponsor bank to First Carolina Bank who ultimately acquired BMTX in Oct 2024.  However, the T-Mobile Money accounts have remained with Customers Bank as the sponsor – at least until now.  Timing may be of interest as I believe the First Carolina Bank acquisition of BMTX is set to close during 1Q2025.
    • Ah – I love BaaS Memory Lane! 😊

 

• Speaking of BaaS…  Credit to Jason Mikula for breaking the news that Solid (another BaaS middleware platform) is allegedly shutting down.  Be sure to subscribe to Jason’s newsletter, Fintech Business Weekly – always a good read.

 

• Castellum.AI (AML/KYC screening and monitoring solution) partners with Hummingbird.  “This collaboration enables Hummingbird users to instantly access Castellum.AI’s enriched data, which covers over 200,000 sources and every single country and territory in the world.” 

 

• Abrigo acquires Integrated Financial Solutions, the provider of IFSLeaseWorks, a leader in end-to-end lease and loan origination and administration automation.  This is “the latest in a series of strategic investments by Abrigo to help financial institutions gain efficiency through automation in the front and back office.”

 

• Wow – there was a lot going on with Credit Unions this week:
  • Alliant Credit Union (Charter 67955; total assets $20.3B) selects Backbase to enhance its digital member experience through Backbase’s Engagement Banking Platform.
  • Wings Financial Credit Union (Charter 68601; total assets $9.3B) goes live on Finzly's ISO 20022-native Fedwire platform, and “completed in just four months.”
  • Post Office Employees’  Credit Union (Charter 63069; total assets $50M) selects Sharetec for core banking upgrade.
  • ELGA Credit Union (Charter 61797; total assets $1.5B) has partnered with Tyfone – particularly Tyfone’s nFinia® Digital Banking Platform for retail and commercial account holders.
  • Larky and Trellance have partnered together bringing a “direct integration of Trellance’s powerful data analytics platform into Larky’s nudge® platform” utilizing AI-driven data insights for hyper-targeted member engagement via location-based push notifications.
  • ModernFi CUSO deposit network now includes over 40 credit unions and the ability to offer members access to $10 million of NCUA insurance* through a single account. 👍

 

• 👉 And of course I have to mention my friends at Acceleron Bank, In Formation with their newly released Ultimate Guide to ISO 20022: The Universal Adapter for community financial institutions as a user-friendly resource containing “practical insights, expert tips, and implementation strategies specifically for community bankers.”  Thank y’all for the work you do supporting community banks!!!! ❤️😊

 

• Digital River online payment processor is laying off all employees and will shut down operations.

 

• Elon Musk’s X payment solution (X Money) continues to move forward towards a potential launch by partnered with Visa Direct to allow “US X Money Account users to fund and transfer money in real-time with their debit card.”

 

• And finally, in the penalty box this week:
  • The New York AG fined Netspend approximately $1.1M as part of a settlement including $735K in restitution and $350K in penalties to the state.
  • The CFPB has ordered Wise to pay approximately $2.5M for “illegal remittance practices.” Wise to pay $450K in redress to harmed consumers and pay a $2.025M civil money penalty.
  • The FDIC published a Consent Order for Bank of Vici, a $33M bank in Oklahoma, for credit losses / capital maintenance, and appropriate staffing including AML/CFT Officer and IT Manager. 
    • 💥 Special thanks and credit to Sarah Beth Felix for pointing out the intriguing nature of the AML/CFT section as this appears to (finally) clearly state the AML Officer “shall report directly to the Board”… and “Have sufficient executive authority”… and be included in succession planning as an executive… – which should be a harbinger for all banks regarding regulatory expectations (yes, even for the smallest of FI’s).

 

• Some personnel moves:
  • Upgrade selects Jeffrey Meiler as Chief Operating Officer.
  • Nymbus appoints Ed Gross as Chief Product Officer.
  • Temenos names Sairam Rangachari as Chief Product Officer.

 

• Notable FinTech funding for the week:
  • BMG Money (loans and financial tools for employees and retirees) closed a $150M funding facility.
  • Foyer (savings app for homebuyers) raised $6.2M Seed Round.

 
 
Random Uncle Sean stuff:

• Well, well, well…  It only took what felt like a year to wrap up January, but here we are!  Looking forward to Groundhog Day this weekend (Sunday, Feb 2) – certainly hoping that our Nation’s favorite meteorological rodent (with all due respect, of course) does not see his shadow and predicts an early spring!!! 
• You made it – here are the Dad / Bad Jokes for the week!!!
  • Fun Fact (IYKYK) – Patrick Mahomes wears the number 15 because that’s how many yards you get penalized if you touch him! 🤐😂  Apologies to my KC fans out there; and credit to NFL Memes for that one!
  • If you eat the entire cake without cutting it, you technically only had one piece…  Follow me for more nutritional guidance! 🤔😜
  • A charcuterie board is basically the adult version of Lunchables – but you get to swap out the Capri Sun for as much wine as you want! 🍷😊
  • With the way those egg prices are headed, we may be painting potatoes this Easter! 🥚🐰🥔
  • If like me, you’ve ever been accused of being ‘born in a barn’ and want to talk about it, remember…….  My door is always open.  😂🤣

 
 
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.