Uncle Sean's Update - 5/22/26

Happy Friday!!!
 
Happy Memorial Day Weekend as we remember and honor the fallen service members of the U.S. military 🙏.  Here is the Uncle Sean Update for 5/22/26 (subscribe here for free):
 
A look at some evolving regulatory matters as a couple of White House Executive Orders caught my attention:
Warning that some of this contains unsolicited Uncle Sean “Off the Rails” commentary… 😊
 

• First up was Integrating Financial Technology Innovation into Regulatory Frameworks – The White House with the purpose of removing roadblocks to innovation, bank-fintech partnerships, and charter application processes.
  • I’m happy to see Sec. 3 “Streamlining Regulatory Process” - particularly the last line “with the importance of safety and soundness, consumer and investor protection, market integrity, financial stability, and oversight.”  Hey – who doesn’t love innovation? 🤙
  • However, Regarding Sec. 4 “Access to Federal Reserve Services” - I do have some concerns about the compliance (or lack thereof) scenarios of enabling “uninsured depository institutions and non-bank financial companies, including those engaged in digital assets and other novel financial activities…” access to real-time payments (FedNow); specifically as it relates to MSB’s / money transmitters as not all are playing in the same regulated playground.

 

• Then came this EO - Restoring Integrity to America's Financial System – The White House which focuses on heightened AML / CFT from banks and CUs (including narco and human trafficking and other illegal activity) particularly as it relates to low-dollar cross-border funds transfers; and credit risks associated with “non-work authorized” population (unlawful / unauthorized immigrants).
  • They did finally recognize MSB (Money Service Business) and third-party processors (including P2P platforms).
  • Uncle Sean’s take – I absolutely get it at the surface level, but it feels a little weird when taken in conjunction with the other White House EO as this one seems to place additional emphasis on banks to counter these risks (Restoring Integrity) while the other EO (Fintech EO) seems to promote non-bank fintech companies access to Fed Master Accounts (albeit “skinny” access) and establish partnerships with financial institutions. 
    • Seems like they got the cart before the horse on this one – especially when compared to the other Fintech EO.  As always – let me know your thoughts!!! 😊

 

• 👉👉👉 The always insightful Sarah Beth Felix has a great summary write-up here with this LinkedIn post calling out the two EO’s as incongruent (yes, that term took me straight to middle school geometry flashback on congruent triangles 😊).  I highly recommend following her for all things AML!!!

 

• Meanwhile, this ABA article highlights the Fed’s formal proposal to create ‘skinny’ master accounts but barring access to traditional banking backstops such as the Fed’s discount window, intraday credit and interest on reserve balances.
  • Full documentation can be found here with this FRB press release.

 
A quick note on the economy:

• 👀 Certainly worth keeping an eye on…  Longer dated Treasury Yields pretty much threw a temper tantrum earlier this week with the 10-YR hitting 4.66% (not seen since Jan 2025) before settling back to a still elevated 4.57% on Friday; and the 30-YR hitting 5.18% (not seen since 2007 😲) before settling in at a still high 5.08% on Friday.

 

• The University of Michigan U.S. consumer sentiment index fell to a record low in May of 44.8 (April was 49.8). 😬

 
Now back to the rest of the Update:

• NMI (embedded payments infrastructure) announced they have acquired Dwollla (API-enabled end-to-end A2A ACH and real-time payment platform) further strengthening NMI’s embedded payments platform.  The acquisition brings more than 400 Dwolla customers to NMI, creating a combined business that processes close to $700B in annual transaction volume.
  • Dave Glaser, CEO of Dwolla, will join NMI’s executive leadership team as Chief Operating Officer.

 

•  Shout-out to my friends 🫶 at Acceleron (they automate international wire xfer and enable in-house FX capabilities for community FI’s) with their partnership with BCUS, Inc., dba Banking Circle US in Connecticut (BCUS), to simplify international wire processing for U.S. community financial institutions.
  • This LinkedIn post by Damon Magnuski (Founder and CEO, Acceleron Bank) sums it up best, “Working with Darsh Mariyappa and the BCUS, Inc. team has been a genuinely great experience, and the integration we've built together addresses something I hear from community bankers constantly: inbound wires are still too manual, too slow, and too prone to error. That changes now.” 👏

 

• 👉 Lumin Digital outlined the next phase of its platform strategy, expanding beyond digital banking into a unified system spanning CRM, lending, payments, and service.

 

• BankSouth (FDIC 16418; total assets $1.6B) selects FIS® Core Banking Platform driven by the bank’s need to better serve its customers by integrating AI capabilities and third-party fintech solutions more rapidly.

 

• State Employees’ Credit Union (charter 66310; total assets $59.7B) selects Corelation Keystone core processing system to provide its members with a more "responsive" system that can roll out new products and improvements aligned with their demands; and increase automation and service efficiency through a holistic overview of member relationships and real-time account information.
  • Recall back at the beginning of April where State Employees’ Credit Union had selected Engage fi as its strategic partner for a multi-year engagement spanning technology, operations, and enterprise transformation.

 

• My First Nest Egg lands a couple of announcements again this week with CU’s both big and small – they’ve been on a roll (Uncle Sean loves ❤️ early financial literacy programs):
  • Vantage West Credit Union (charter 68558; total assets $3.3B) partners with My First Nest Egg to help children and teens build strong money habits early.
  • Fox Federal Credit Union (charter 16954; total assets $38M) launches a family-first financial education partnership with My First Nest Egg.

 

• Plaid announced the launch of Plaid Guaranteed Payments – a fully managed bank payments solution for merchants / fintech companies that evaluates every transaction in real time and returns an approval decision in milliseconds (enabling instant crediting of accounts / delivery decisions).  “If Plaid approves it, we guarantee settlement. If a payment fails, we cover the loss and handle recovery.”  Nice! 👍 
  • Guaranteed Payments is built on Plaid’s Signal (their AI-powered ACH risk platform) and Protect (their real-time fraud intelligence system).

 

• Meanwhile, Bitcoin Depot (Nasdaq: BTM), a US-based Bitcoin ATM operator filed for Chapter 11 Bankruptcy protection.  The company’s network of more than 9,000 BTM kiosks has been taken offline as it begins an orderly wind-down and asset sale. Alex Holmes, CEO of Bitcoin Depot cited “…increasing litigation and regulatory enforcement” faced by BTM operators.

 

• 👀 Check out Imprint as they get in on a pair of high-profile card announcements this week:
  • American Express (NYSE: AXP) and Fanatics announced the launch of the new Fanatics American Express® Card open-loop co-branded credit card issued by First Electronic Bank and managed by Imprint.
  • Shell Oil Products US announced the launch of the new Shell Performance Elite World Mastercard® open-loop co-branded credit card issued by First Bank & Trust and powered by Imprint.

 

• Notable FinTech funding for the week:
  • Mercury raised $200M in Series D funding round at a $5.2B valuation ahead of the upcoming launch of Mercury Bank, N.A..
  • Relay (small business banking and money management platform) raised $50M in growth capital as the company surpasses $1.3 billion in managed deposits (through Thread Bank) and 150,000 small business customers.

 
Random Uncle Sean stuff:

• Pour one out 🍺…  After 177 years of brewing history, Pabst Brewing confirmed it is ceasing production of Schlitz “the beer that made Milwaukee famous.”
• Check out Sail250® gathering of tall ships and military ships in celebration of the 250th Anniversary of the founding of the United States.  With dates spanning 5/27 – 7/16, be sure to check out these links for destination specific celebrations and info on the international fleet of tall ships (some great pics): Sail 250® New Orleans, Sail250® Virginia (Norfolk, Host City), Sail250® Maryland (& Airshow Baltimore), Sail4th 250 (Port of New York & New Jersey), and Sail Boston.  Very cool!!!
• And here are the Dad / Bad Jokes to kick off Memorial Day Weekend!!!
  • What kind of pants does a Ghosthunter wear?  Just a paranormal jeans… 😉
  • Mom said I could be anything when I grow up…  So naturally, I became an issue! 🤠🙃
  • (while introducing myself at the Avengers superhero board meeting) “Well, I was bitten by a radioactive lawyer and ended up with the power of attorney.” 🤣
  • And my favorite for the week….
    • I went to get my hair cut and I told my hairstylist lady to “just make me look good.”  So, she started drinking… 🫤😅

 
 
“The world needs good people - be one of them.”
 
Have a GREAT MEMORIAL DAY 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 and its affiliates – we all know he’s a little bit different; but that’s why we love him.