Uncle Sean's Update - 6/24/22

​Happy Friday!!!
 
FinTech | Banking | Data – it’s what we do!  Here is the Uncle Sean Update for 6/24/22:

• Fiserv gets a BIG salute from Uncle Sean this week as a Premier Sponsor of the Bankers Helping Bankers platform to accelerate support for community banks with technology education, fintech data, and collaborative innovation.  OUTSTANDING!!!!!  I am super proud to be a part of this movement supporting community banking!
  • Don’t forget to check out Fiserv’s new App Market allowing an open platform for banks on Fiserv core (DNA, Cleartouch, Precision, Signature, and Premier) to easily offer and integrate FI FinTech solutions “to address emerging opportunities in crypto finance, gig economy banking, small and mid-size business (SMB) lending and other priorities.”
  • And while you are at it – check out Bankers Helping Bankers launched by IBAT and FedFis.
    • Bankers Helping Bankers is for bankers only, but don’t miss out on the BHB BaaS Association which affiliate membership is open to:
      • FinTech and Bank Vendors
      • And of course, Banks looking to become a Sponsor Bank / BaaS Bank

 

• In a bit of an abrupt move (although not completely surprising – more on that below), Brex announced that they are moving away from SMB's focusing on VC backed and enterprise level customers for growth.
  • The announcement clearly caught many customers off guard as they were told that they had until August 15, 2022 to find an alternate solution.  TechCrunch has a really good follow up clarifying the Brex decision to show that only startups without “professional” funding in place will be impacted.
    • Look – I get it.  This allows Brex to eliminate low growth potential (somewhat discriminatory) “boot-strapped” SMB’s AND mitigate a higher perceived credit risk.  But yeah – the delivery was a little rough.  Especially considering the branding of “Corporate Card for Startups.”  But to be completely fair – Brex had always focused on funding versus credit history. 
    • Also not surprising was the swift competitor response – RelayFI was quick on the draw to capitalize and offer $150 for switching from Brex to Realy with proof that the customer was affected by Brex’s decision.
  • Pedro Franceschi (founder and co-CEO) gave an updated Blog post this week basically stating, yep – we botched that announcement and could have / should have done better.

 

• Tillful (business credit for SMB’s) announced a partnership with Experian to help establish and build “credit profiles for businesses that are new to credit or otherwise credit invisible, and thereby potentially expand the range of credit options that can be made available to them.”  A VERY COOL concept!
  • Recall on the Uncle Sean Update from 6/3/22, we talked about the launch of the Tillful Card (Mastercard issued by Sutton Bank).

 

• Zogo (gamified financial literacy app) announced that they have reached 200 Financial Institutions and 700,000 Users in Less Than 3 Years– WOW!!!!
  • I personally love the fact that the majority of their users are under the age of 24 as Uncle Sean is a HUGE proponent of financial literacy for everyone.  Check them out at Zogo.com. 

 

• “Let the dividends begin!”  Oops - sorry, did I just say that (LOL)???
  • The Federal Reserve Board released results of their annual stress test of the nation’s 33 largest banks. Punchline is that all banks perform well above required CET1 minimum capital levels under severe adverse scenario testing (despite a more rigorous stress scenario than last year).
  • You can check out the  66 page DFAST stress test report here including individual bank results.  BankingDive also has a good summary suggesting that dividends will likely remain flat, but certain banks may pare back buyback plans.

 

• FTX US (crypto exchange) announced the acquisition of Embed Financial Technologies, a white-label brokerage platform, in support of FTX Stocks to provide comprehensive equity and ETF trading across all asset classes – not just crypto.

 

• Truist completes their new Innovation and Technology Center in Charlotte, NC.

 

• Worth keeping an eye on – the CFPB is looking at credit card late fees as a potential area to crack down on as inflation threatens consumers.

 

• Notable FinTech funding for the week:
  • Autobooks (embedded payment and accounting platform for small businesses used by over 800 financial institutions) raised $50M in Series C funding round.  Valuation was not disclosed, but the company did state that they now have over 60,000 businesses on the platform with 840 bank installs – NICE!!!
  • Wahed (Muslim faith-based ethical investing / wealth mgmt app) raised $50M in Series B round and plans to launch a neobank soon.
  • Tapcheck (on-demand / earned wage access platform) raised $20M in Series A funding round.
  • Prime Trust (regulated crypto infrastructure platform) raised $107M in Series B to further enhance new offerings and wealth products such as their API-enabled Crypto IRA.
  • BlockFI (digital asset / crypto platform) signs a $250M credit facility from FTX to provide liquidity and “bolster BlockFI’s balance sheet.”
  • Cleo (PFM App) raised $80M in capital at a $500M valuation to continue to expand in the US.
  • FalconX (digital asset platform for institutional investors) raised $150M in Series D funding at an $8B valuation – WOWZA!
  • Vergo (business banking platform for architectural, engineering, and construction industry) raised $4.1M in Seed funding.

 
 
Random Uncle Sean Stuff:

• In other news this week - Juul gets smoked as the FDA bans their e-cig vaping products in the United States – WOW!!!  Of course, Juul responded defensively and is seeking a stay against the FDA ban and an appeal.
• Happy Birthday to our very own Dan Heilveil – have a good one buddy!!!!
• And of course a few bad Dad Jokes:
  • While at the restaurant, Aunt Patty said, “I’ll have the chef’s salad” and I whispered to her “that’s a little bit rude, just order your own!”
  • I bought new deodorant and the directions said, “remove top, push up bottom” – and I thought to myself…..  I really just wanted it for my armpits…  😲
  • It takes guts to be an organ donor!
  • Okay last one….
    • Good Morning.  Is this the Helpline for Alcoholics?  How do you make a Mojito? 😊

 
 
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.