Uncle Sean's Update - 4/19/24

​Happy Friday!!!
 
It’s 4/20 eve, so don’t forget to leave milk and cookies out tonight for Snoop Dogg and Willie Nelson 😮😅 (that joke never gets old).  There is a lot going on this week, so let’s jump right in!  Here is the Uncle Sean Update for 4/19/24:
 

• 👀 Special shout-out to our friends at TrueNorth for their recently announced sponsorship of the Bankers Helping Bankers (BHB) platform in support of community banks!
  • "This partnership represents a shared vision for empowering community banks across the country," said Alex Gonikman, co-founder and CEO of TrueNorth. "We are committed to contributing our expertise and resources to the BHB community, fostering growth and demystifying innovation within the industry."  Love it!!! 🚀

 

• Backbase flexes with a couple of press releases this week:
  • Navy Federal Credit Union (Charter 5536; Total Assets $171B) extends its digital partnership with Backbase with a new seven year agreement.
  • Backbase enters into a strategic partnership with EverBank (FDIC 34775; Total Assets $36B) to enhance the banks commercial and treasury services and ongoing digital transformation by utilizing the Backbase Engagement Banking Platform.

 

• Rapid Finance (small business banking / capital funding platform) announced the launch of the Rapid Access Mastercard for SMB’s.  The card is a prepaid commercial card that is funded by the SMB’s existing LOC with Rapid Finance; and issued by SoFi Bank with Galileo as the program manager (of course).  Nice!!!

 

• Klarna (BNPL) to launch the Klarna Card in the U.S., a Visa CC issued by WebBank.  This is a credit variation of BNPL utilizing an installment method for specific purchases as opposed to the traditional credit card revolver, or split debit transaction.
  • But wait, there’s more!  According to this TechCrunch interview, the card boasts up to a mind-numbing 10% cash back (😮) with certain merchants when using the card in its app.  Customers can use the card either in person or online and have the option post-purchase to spread out the payments as an installment up to six months at 33.9% interest rate (ouch LOL); or pay the balance off within the monthly statement timeframe at zero interest.

 

• Rain (EWA and financial wellness app) partners with Marqeta to launch the Rain Card allowing employers to disburse earned wages onto the cards.  There is no mention of who the sponsor issuer is (although Marqeta works with several BaaS Sponsor Banks) or the card network.  However, Marqeta’s platform can enable Rain to expand to secured and unsecured credit cards as well.

 

• Mercury (business banking platform) jumps into personal/retail banking with the launch of Mercury Personal focusing on founders, tech leaders, and investors.  The retail platform features $5M in enhanced FDIC insurance, 5% APY on high-yield savings, and the ability to create / issue multiple accounts and debit cards with customizable spending limits.

 

• Pipe launched embedded Capital-as-a-Service solution allowing payment processors to easily launch a capital product via Pipe’s API without the complexity, risk, and resources involved in building it in-house.  Pipe’s embedded offering already touches over 800,000 merchants, and has partnered “with two major capital providers, which collectively enable Pipe to fund more than $1 billion in originations annually allowing Pipe to serve hundreds of thousands of small businesses.”

 

• Bankjoy has partnered with Pinwheel allowing Bankjoy’s bank and credit union customers to easily integrate Pinwheel’s digital deposit switching solution.

 

• COCC integrates FedNow® Service into its offerings for instant payments for their bank customers.  The launch enabled BankNewport (FDIC 18129; Total Assets $2.7B) to quickly offer their end users the FedNow® Service.

 

• Codat launched Supplier Enablement API product to combat check fraud by helping issuing banks transition from checks to virtual cards for their business customers (B2B payments).  JPMorgan Chase has come out as one of the early users of the product.
  • Banking Dive has a good summary with additional input as a supplier finance solution.  

 

• Ferry has launched the Ferry Prepaid Payroll Card and instant tip payment solution for BJ’s Restaurants.  The prepaid Visa card is issued by Community Federal Savings Bank and powered by Highnote program management.  Embedded finance for the win - woohoo!!!! 🎉

 

• Grasshopper Bank launched digital application for SBA loans for borrowers to apply directly for Small Business Administration (SBA) loans and get pre-qualified “in less than 10 minutes from any device.”

 

• Personnel updates:
  • Congratulations to Susan Odom who celebrated 45 years at Citizens State Bank - Woodville this week – WOW!!!! 🎉👏
  • Sagard hires Kris Hansen as CTO (was co-founder and CTO of Synctera).
  • Current hires Scot Parnell as their first CFO.
  • Green Dot names Renata Caine as General Manager of Banking as a Service (BaaS).

 

• Notable FinTech funding for the week:
  • Stripe picked up a cool $694M in finding from a stock sale previously announced in February.
  • Ramp raised $150M in Series D-2 extension round at a $7.65B valuation; and bringing the total Series D to $450M.

 
 
Random Uncle Sean stuff:

• Boston Dynamics has retired its Atlas Robot that was powered by hydraulics – but also revealed their new all electric Atlas Robot.  You must watch the YouTube video – very cool (albeit just a little bit creepy).
• You can stop scrolling now – here are the Dad / Bad jokes: 😎
  • For the philosopher’s out there…🧑‍🎓  Ah… The antithesis of constructive collaboration….  “No individual is dumber than the group as a whole….  AKA collective stupidity.”   🤪🙃  I laughed way too hard at that!
  • I wonder if my Mom can still slap me into next week because I need my paycheck early!
  • Geology rocks, but geography is where it’s at! 🤠
  • And Dorothy suddenly realized, that’s not a yellow brick road - it’s Texas pollen!!!! 😮🤣

 
 
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.