Uncle Sean's Update - 5/14/21

Happy Friday!!!!
 
Our MO is simple - Fintech, Banking, Data…  Oh and surveys are B.S. - LOL!!!  Here is the Uncle Sean Update for 5/14/21:
 

• Brex is the latest to add a crypto rewards program (Bitcoin and Ethereum), but claims to be the first for small business credit cards via TravelBank through their partnership with Coinbase.  This is pretty cool if you are a small business and looking to “dip a toe into crypto” (which is fun to say out loud - sorry, I just couldn’t help myself - LOL).  This comes just a few weeks after we covered the SoFi consumer credit card with crypto rewards; Unifimoney Premier consumer credit card with rewards in Bitcoin, Gold, and Equity; and the Gemini consumer credit card through Mastercard and WebBank with real-time rewards in over 30 cryptocurrencies on the Gemini platform.  Yep – I would say it is starting to catch on….

 

• Google Pay enables international transfers by partnering with Western Union and Wise (fka TransferWise). 

 

• ENACOMM is making headlines over the last few weeks.  First they announce an agreement with Data Center Inc. (DCI) to provide API connectivity between Data Center Inc.’s (DCI’s) iCoreGO online and mobile solutions and any other core processor to allow FI’s to adopt a wider range of applications; and this week they are at it again announcing the ENACOMM Financial Suite (EFS) with intelligent IVR application (including fraud and analytics tools) is available for purchase through Finastra's FusionStore.

 

• Atmos is looking to add Florida de novo Climate First Bank as a second sponsor bank (currently using Evolve Bank & Trust) to more closely align with their green mission.  Pretty cool that Climate First Bank is already a Sponsor Bank and they haven’t even opened their doors yet (charter was approved in March and they are set to open next month).  

 

• BNPL for air travel appears to be the new rage as we exit the pandemic.  Earlier this month we saw Southwest Airlines get into it with their “Fly Now Pay Later” BNPL solution provided by Uplift.  Now, American Express has expanded their existing “Plan It” BNPL feature for flights booked on the American Express Travel Website as a POS solution.  However, AMEX customers that book flights on other travel sites will still need to log onto AMEX to switch to an installment plan after their purchase.  

 

• And more BNPL - PayPal announced an agreement to acquire Happy Returns.  This is another merger that makes good logical sense as BNPL play (PayPal pay in 4) acquiring a reverse logistics platform for enhanced integration in the supply chain (whew – that was a ton of “word salad” right there).  TechCrunch has a good writeup here.  Recall a few weeks ago where we discussed Affirm to acquire Returnly under a similar model (i.e. make the returns of online purchases easy so the consumer will buy more and more often) – I suspect we will see more of these deals in the near future….  All the cool kids are doing it - LOL!!!

 

• JP Morgan, Wells Fargo, US Bank, and about 7 other banks have signed up for a government-backed pilot program to potentially issue credit cards to adults without credit scores using data like checking and savings account balances.  I admit it - at first I wasn’t all that impressed until I read that “approximately 53 million U.S. adults don’t have credit scores, according to Fair Isaac Corp.  These underserved adults usually have to turn to expensive payday loans or other alternative measures.” 

 

• Better (online home ownership platform) to go public via SPAC merger with Aurora Acquisition Corp (Nasdaq: AURC) in a transaction valued at $7.7B.  Check out the very well done Better Investor Deck for more detail related to growth, proprietary platform (Tinman), holistic approach (realtor, mortgage, title, insurance, services, etc.), and incredible efficient operations and closing speed.

 

• Repay to acquire BillingTree for $503M.

 

• Green Dot to acquire Republic Bank & Trust's Tax Refund Solutions Business for $165M.

 

• BaaS provider Treasury Prime raises $20M in Series B funding round.  Valuation was not disclosed, but the company said they have experienced dramatic growth over the last twelve months; and the new capital will be used to “accelerate go-to-market programs and to expand the company’s sales, marketing, and engineering teams.”

 

• Lili (a Neo / Challenger Bank for the freelance market) raised $55M in Series B funding round.  Valuation was not disclosed, but Lili has now raised $80M and customer count exceeds 200,000 since their launch in January 2020.

 

• Relay (Small Business Neo / Challenger Bank) raises $15M in Series A funding round.

 

• FDIC appoints Ms. Zunera Mazhar as Deputy Director of the FDIC’s Office of Innovation, FDiTech.  Ms. Mazhar will guide the agency’s work to promote the adoption of innovative technologies within the FDIC and across the financial services sector.

 

• The US Senate has voted to overturn the OCC "true lender" law in a 52-47 vote; and now heads to the House where it is expected to pass as well.  There are strong arguments on both sides of this topic.  I am guessing that we haven’t heard the last of this and that some level of national regulation will need to be clarified.

 

• The FDIC released the 2021 Risk Review Report that covers the full effect of the pandemic on US banking.  This is a long read (88 pages took me about 2 hours to fully read), but it is very good.  I am also happy that is covers up through Jan 2021 as opposed to other FDIC reports that come out about a year or two after the fact when the event is no longer relevant (SMH)…..  Thankfully, each section has summary points at the beginning so you can peruse through quickly if you need to; and the graphs are very well done too.

 

• If y’all are at the AFT 2021 Spring Summit in Florida, keep an eye out for Tanner Mayo and Dave Mayo – the original FinTech Cowboys!!!  And if they are wearing shorts and cowboy hats in public, please post pics all over the internet – LOL!!!!!

 
 
Random Uncle Sean Stuff:

• In case you missed it, here is the Elon Musk SNL Intro with his Mom (5 minutes) as well as the infamous WTH is Dogecoin skit (2 minutes).  I was surprised at how funny this actually turned out to be.
• The Go-Go's were FINALLY inducted into the Rock & Roll Hall of Fame this week!!!!  This Rolling Stone interview is a good read and the LA Times has a good write-up as well.  Congrats to the OG all-girl punk band out of LA!!!!
• If you are ever in Dripping Springs, TX – do yourself a favor and stop by Flores Mexican Restaurant and try the Sangria Margarita and the appetizer sampler plate.  Uncle Sean and Aunt Patty give it two thumbs up as a winning combination (especially if you have more than one of those sangria margaritas – WhoooAhhhh)!

 
 
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.
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