Uncle Sean's Update 4/15/22

Happy Good Friday!!!
 
Wishing everyone a Happy Easter, but don’t forget about your taxes (due by Monday for the procrastinators like me, so there is still PLENTY of time)!!!!  Here is the Uncle Sean Update for 4/15/22:

• Look who gets the headline spot for this week’s Uncle Sean Update – SUPER excited to give a shout out to our very own Mr. Bobby Button and his promotion to Chief Revenue Officer at FedFis!!!!  Congratulations, Bobby – very well deserved!!!!

 

• More cool things are happening within Bankers Helping Bankers!!!  Check out this week’s press release and the newly launched BHB Banking-as-a-Service (BaaS) Association!!! 
  • Tanner does an excellent job describing the purpose of the BaaS Association in the article supporting the unique needs of Sponsor Banks; and I love the community aspect.  But from an old bank financial analyst perspective, Uncle Sean is particularly interested in the direct dialogue with regulators and a consistent approach regarding safety and soundness, as well as reporting (I know – I’m weird like that – LOL).  For instance:
    • How do Sponsor Banks record fintech accounts on the Call Report (I honestly can’t tell for sure on a consistent basis and my instinct suggests that this might be done in different ways by different banks)?
      • i.e. (without getting into core processing specifics) - if my bank has 1 fintech customer that brings in 20,000 DDA accounts, do I record that as 1 commercial FBO account in aggregate or 20,000 separate consumer DDA’s on schedules RC-E (total deposits for individuals) and RC-O (deposit accounts above / below $250K)???

 

• CU’s are getting in on the Direct Digital Bank (errr “Brand”) trend too - Michigan State University FCU (Charter 23279; total assets $6.7B) selects Nymbus to launch and grow their new standalone digital brand, AlumniFI – very cool!!!!

 

• Deserve launches Commercial Credit Card platform to allow banks and fintech companies to launch co-branded credit and charge card programs for their business customers in less than 120 days.  More info here - deservecards.com/platform/commercial.

 

• Revolut (global fintech who already has U.S. sponsor bank relations with Metropolitan Commercial Bank and Sutton Bank) has announced a partnership with Cross River Bank to break into the credit / asset side by providing personal loans with additional credit products in the pipeline for U.S. customers.

 

• The CFPB issues scathing remarks about TransUnion and announced a lawsuit against the firm for allegedly continuing to violate the 2017 Order as a repeat offender.
  • “TransUnion is an out-of-control repeat offender that believes it is above the law,” said CFPB Director Rohit Chopra. “I am concerned that TransUnion’s leadership is either unwilling or incapable of operating its businesses lawfully.”  OUCH!!!!
  • Even more interesting (and slightly terrifying) is the fact that the actual complaint seeks to hold TransUnion executive John Danaher jointly and severally liable for damages, restitution, disgorgement of unjust enrichment, and civil money penalties.

 

• Blockchain.com announced a sponsorship deal with the Dallas Cowboys……..
  • I wonder if this will help the Cowboys do more than “one and done” in the playoffs……????  😊
    • Uncle Sean can’t help but have another traumatic flashback to the Dallas Cowboys calling a QB Draw and running the ball up the middle for 17 yards on a second-and 1 down with no way to stop the clock as time expired thus losing the playoff wild-card game 23-17 to San Francisco.  C’MON MAN!!!  Still not over it…  LOL!!!

 

• CPI came in at 8.5% year-over-year and 1.2% for the month of March – the highest levels since December 1981 per the BLS report.  Core CPI came in at 6.5% year-over-year and 0.3% for March.  So basically, if you are under the age of 60 – you have never experienced inflation this high as a working adult.
  • What was life like in 1981???  Well I’m glad you asked - LOL:
    • MTV launched and the first video was (appropriately) Video Killed the Radio Star by The Buggles; DeLorean cars debuted; we watched The Royal Wedding of Prince Charles and Dianna; witnessed the first space shuttle launch; and Bette Davis Eyes by Kim Carnes was number 1 on the Billboard Top 100 songs of 1981.
    • In the Mayo household, we had a telephone cord that was about 600,000 feet long (only exaggerating a little) so we could talk on the wall phone in private – that thing would inevitably get tangled and twisted up and it would take a NASA engineer to fix it; tube socks to the knees were standard (and cool); everyone had a Rubik’s Cube and had learned how to take it apart; and we were still rockin’ shag carpet and bell bottoms!!!!

 

• FIS unveils their Banking-as-a-Service Hub allowing financial institutions to rapidly launch new fintech offerings.  “By delivering banking and payments products in an ‘as-a-service’ fashion, institutions can pressure test rapid innovation with a low-risk “pay-as-you-grow” model.

 

• Wright-Patt Credit Union in Beavercreek, OH (charter 66328; $7.1B total assets) becomes the latest FI reduce OD and NSF fees.

 

• Notable FinTech funding for the week:
  • Circle (issuer of USDC stablecoin) raised a massive $400M in capital ahead of the previously announced SPAC merger that is expected to close by year-end.
  • Wagestream (UK based financial app for front-line hourly workers) raised $175M in capital consisting of $60M Series C and $115M debt facility with a big push to expand in the U.S.
  • Capital on Tap (SMB CC platform) raised $200M in funding to expand their U.S. business credit card platform (Visa issued by WebBank).
  • Welcome Tech (digital banking and PFM platform for immigrants) raised $30M in new capital to “support the growth of its digital wallet and subscription healthcare program, and to bolster the national launch of its credit card product in the second half of 2022.”
  • Winden (business banking app for digital entrepreneurs) raised $5.3M in Seed funding. 
  • Creative Juice (banking platform for creators) raised $15M in Series A funding round plus another $50M for their Juice Fund which invests in creators and their companies.
  • Ugami (financial platform for gamers) raised $4.8M in Seed funding and launched a closed beta for their App and Visa debit card issued by Blue Ridge Bank, NA.

 
 
Random Uncle Sean Stuff:

• #42 – Today is Jackie Robinson Day marking the 75th anniversary of Jackie Robinson’s MLB debut and the breaking of baseball’s color barrier with celebrations across the country.
• It is Easter weekend, and yes – Aunt Patty and I still hide easter eggs for our adult children (Easter baskets and all); and hope to be fortunate enough to do so for the remainder of our days!!!!
• Unfortunately, it’s also tax day (ugh) although the deadline this year is April 18 in recognition of Emancipation Day in D.C.  Since we all love taxes so much, here are a few tax related Dad Jokes:
  • Pre-tax income is just nasty because it’s gross income (I laughed way to hard at that one due to my accounting background)….
  • When you spell “The IRS” it looks a lot like “THEIRS”….
  • Do marijuana dispensaries file Joint returns…???
  • And lastly, a Pro Tip for you – I drank 2 bottles of wine before doing my taxes last night and apparently I am getting back $1.5 Million!!!!  😊

 
 
Have a GREAT Easter 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.