Uncle Sean's Update - 6/23/23

Happy Friday!!!
 
What is it with 4 day workweeks that just kill us???!!!  Here is the Uncle Sean Update for 6/23/23:
 

• The BaaS Association (part of the BHB network) was busy this week welcoming new members Treasury Prime and Infinant.  Welcome aboard!!!

 

• And more Treasury Prime news as they partner with Checkout.com with plans to launch several initiatives in the coming months (including Debit Card Funding product for account opening).

 

• I like seeing this - Citi has collaborated with Best Buy to introduce the Bridge built by Citi® Platform to Best Buy Suppliers, a supplier finance platform providing loans between $100K and $10M.
  • The really cool part is that this platform is connected to over 75 community and regional banks, including more than 20 Minority Depository Institutions (MDIs) and 4 women-owned banks – Nice job Citi!!!! 😊
  • Take a look at the dedicated website for Best Buy suppliers at www.bridgebuiltbyciti.com/bestbuy

 

• Jack Henry announced the launch of Payrailz®  Fraud Monitor for AI enhanced real-time payments fraud detection.

 

• We knew it was coming, but it’s official now – the U.S. Department of Education stated that student loan payments will restart in October with interest to resume accruing beginning Sept 1.  Hopefully, this doesn’t result in delinquencies / asset quality concerns in other areas of personal loans (here’s looking at you Credit Card and Auto debt).

 

• Congrats to Chris Davis for the recent promotion to SVP, COO at RiverBank!

 

• 👀 Google Cloud announced the launch of Anti Money Laundering AI tool to help financial institutions “more effectively and efficiently detect money laundering.”

 

• Plaid announced the launch of Beacon, an anti-fraud network for fintechs and financial institutions to log / track bad actors in order to “mitigate repeat fraud against businesses, protect consumers, and create a safer digital finance ecosystem.”

 

• Meanwhile, the CFPB is working on creating their own public registry of nonbank persons that are under certain public enforcement orders and will include information regarding those orders.

 

• Continuing the trend from last week, there was certainly no shortage of ‘wheelin & dealin’ in the merger space for fintechs:
  • Robinhood to acquire X1 credit card platform for $95M.
  • BM Technologies (NYSE: BMTX, f/k/a BankMobile) acquired Envel, an AI powered PFM app, in what has been described as a liquidation sale of Envel.
  • Baker Hill to be acquired by Flexpoint Ford private equity firm

 

• Well, that didn’t last very long….  Crypto custodian BitGo has terminated the planned acquisition of Prime Trust just two weeks after announcing the acquisition.  😲
  • Prime Trust has now halted all USD deposits and withdrawals by order from Nevada regulator stating “the overall financial condition of Respondent has considerably deteriorated to a critically deficient level, and is now in a position where it is in an unsafe or unsound condition to transact business…”  

 

• As expected, the DOJ is looking at expanding the scope of competitive factors for bank merger review beyond the old school approach of branch overlap and market concentration of deposits (although I admit that “Herfindahl-Hirschman index” is fun to say – LOL).
  • Worth noting that the OCC, FDIC, and Federal Reserve are also in the process of revamping bank merger guidelines that have largely been in place since 1995.

 

• Figure launched a HELOC wholesale model enabling originators to seamlessly access Figure’s home equity line of credit offering.

 

• Sezzle (BNPL installment platform) announced the launch of Sezzle Pay Anywhere, a subscription-based product that allows shoppers to use their Sezzle Virtual Card to pay anywhere Visa is accepted whether it be online, in-store, or bill pay.

 

• Notable FinTech funding for the week:
  • Yendo (f/k/a Otto - credit card collateralized by car ownership) raised $24M in Series A funding round.
  • For my Ag Banker friends (Uncle Sean loves AgTech), Guardian Agriculture (autonomous drones for commercial farming as an alternative to crop dusting and ground spraying) raised $20M in Series A funding to continue to scale their U.S. operations.  The article cites more than $100M in pre-orders – NICE!!! 👍
  • Aktos (system of record for modernized debt collection agencies) raised $4.4M in Seed funding to build an AI-powered operating system for the debt collection industry.

 
 
Random Uncle Sean stuff:

• I don’t know how I feel about this just yet – but it is very interesting nonetheless…  The USDA approved two California companies this week, UPSIDE Foods and GOOD Meat, to sell chicken made from animal cells (aka “lab-grown meat”) instead of slaughtered animals. AP News has a good summary; and here are the respective press releases for more info - GOOD Meat press release and UPSIDE Foods press release.
  • One thing is for sure, this brings a whole new meaning to the phrase “tastes like chicken!”  LOL 🐔🍗🤣
• Potential game changer???  Domino’s Pizza announced Pinpoint Delivery this week.  Yep, you can now “drop a pin” within the Domino’s App showing your location and get your favorite pizza delivered straight to you. I’m sure there are certain geographic/distance restrictions (don’t think they are going to hand deliver your pie to you after you hiked 15 miles in the middle of nowhere and got a pizza craving, but you get the gist) - “customers and delivery experts will meet at specific locations designated in the Domino's app that may be adjacent to places like parks, baseball fields and beaches…”  That’s a good start – no address / no problem.  “Pin me.” 🍕
• ICYMI (Uncle Sean loves this) – Apparently, Fed Reserve Chairman Jerome Powell is a Deadhead!!!!  “I’ve been a Grateful Dead fan for 50 years.”  Rock on Chair Powell!!!!  🤘😎
• And last but certainly not least – this week’s rendition of Dad Jokes from Uncle Sean!!!!
  • Excessive heat warning for my fellow Texans - remember to drink plenty of water and stay indoors from 11 AM to November.  😝
  • Noah’s Captain’s Log on Day 39:  “Grilled Unicorn is delicious!”
  • Cows knees are also referred to as burger joints….
  • I haven’t spoken to Aunt Patty’s sister in years…  I didn’t want to interrupt her…  LOL!!!!  🤣

 
 
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.