Uncle Sean's Update - 6/7/24

​Happy Friday!!!
 
FinTech | Banking | Data – it’s in our DNA and you can’t just wash that off!!! 🤠  Here is the Uncle Sean Update for 6/7/24:
 

• Shout-out to Bedel Security as the inaugural 'Friends of BHB' sponsor in support of community banks!!! 🚀
  • Chris Bedel, CEO of Bedel Security, added, "Community banks are the backbone of our economy, and their security is paramount. By partnering with Bankers Helping Bankers, we are extending our reach and impact, ensuring that these vital institutions receive the guidance and support they need to navigate the ever-evolving cybersecurity landscape. Together, we can make a meaningful difference in the industry."
    • Couldn’t have said it any better myself!!! ❤️

 

• Special thank you AGAIN goes out to Jason Mikula and Fintech Business Weekly (you can subscribe here) for continued coverage on the Synapse bankruptcy as the US Trustee (former FDIC Chair Jelena McWilliams) update shows an $85M shortfall versus what depositors are owed; and offers a few routes forward subject to BK Judge approval.
  • The key point for me is that the Trustee is 100% laser focused on returning funds to users – PRIOR to any discussions about first in line secured creditors (thankfully).  Recall the Voyager Digital bankruptcy (back in 2022) where this wasn’t necessarily the case at the beginning regarding the cash (not crypto) amounts on the prepaid GPR debit cards issued by Metropolitan Commercial Bank, but ultimately worked out for the consumers after taking 55 days from the time Voyager halted withdrawals until the BK court ordered the release of cash funds.
    • Happy to see that it appears the courts are looking at consumer funds in a fintech BK akin to titled property (and NOT part of the BK estate) which should expediate returns to consumers going forward for future BK issues (hopefully during first day proceedings).  Check that contractual language!
      • Obviously Uncle Sean is not an attorney and this does not constitute legal advice (LOL) – always consult with counsel. 😊

 

• As one of the last pieces of economic data prior to next weeks FOMC meeting, the May Jobs Report came in stronger than expected which is good news, but that’s bad news because we need bad news to give us good news on future rates (wait – what the hell did I just write??? 🤣)….  Okay – I digress.
  • The BLS Report showed the economy added 272,000 jobs for May (up from 165,000 in April and well above estimates of 190,000) led by increases in healthcare, leisure & hospitality, and gov’t (no surprises here).  HOWEVER, the unemployment rate ticked up to 4.0% (yes, that is a little weird) as the labor participation rate dropped to 62.5% (yes, even weirder but survey data is odd sometimes)…🤷‍♂️🤓  CNBC has a good summary as always.

 

• 👀 Another week and another CU acquiring a bank.  ELGA Credit Union (Charter 61797; Total Assets $1.52B) announced an agreement to acquire Marine Bank & Trust Company (FDIC 34233; Total Assets $666M).
  • Worth noting on this deal that ELGA CU is a state chartered CU located in Grand Blanc, MI while Marine Bank & Trust Company operates out of Vero Beach, FL with all branches within FL. 
    • Hmmm…  I’m guessing that winter “snow bird” pull is strong – LOL!!! 🏖️🩴
  • The count is now up to 12 announced acquisitions of a bank thus far in 2024 compared to 11 in 2023, 16 in 2022, 13 in 2021, 7 in 2020, and 16 in 2019 (Source: FedFis).

 

• Our friends at Atomic continue to crush it as Mastercard announced the integration of Deposit Switch and Bill Pay Switch powered by Atomic into Mastercard’s Open Banking platform.  BOOYAH!!!!! 💪

 

• LoanPro integrates with Visa DPS as processor to provide LoanPro clients with a “comprehensive platform for launching, servicing, and managing card programs, with compliance at the forefront.”
  • This is a good article in Fintech Nexus highlighting some of the benefits of LoanPro integrating with Visa DPS such as ‘unique personalization’ by enabling “brands to offer customized interest rates, credit limits, and grace periods based on amount, location, merchant type or other criteria.”

 

• More open banking headlines as Plaid announced the launch of Consumer Report allowing businesses to receive “real-time, actionable cash flow data along with credit risk insights through Plaid Check” [(their previously announced consumer reporting agency (CRA)].
  • Basically, through permissioned open banking, consumers can share their cash flow data allowing businesses to embed those credit risk insights “directly into their underwriting and verification workflows with a single API.”

 

• Pinnacle Bank (FDIC 14065; Total Assets $2.2B) is the latest FI to partner with CorServ to launch a comprehensive credit card program for its commercial, business and consumer customers. 
  • CorServ has been on a roll lately!

 

• i2C has partnered with Affiniti Finance to enable trade association partners (HVAC, community pharmacy, etc.) to offer “co-branded, association-endorsed credit products to improve financial access to small businesses in traditionally underserved segments and regions.”

 

• Affirm adds two new BNPL payment options to battle traditional cards.  Pay in 30 allows for full payment within 30 days and the Pay in 2 option to pay two installments within a 30 day time period.  This is in addition to their existing Pay in Four offering.  You can read the Affirm PR here.

 

• Leaning in to crypto as the price of BTC-USD tops $71,500…  Robinhood (Nasdaq: HOOD) announced they will acquire crypto exchange Bitstamp (a 13 year old platform popular in Europe and Asia) for approximately $200M in an all cash transaction; and will significantly accelerate Robinhood’s crypto expansion internationally.

 

• The U.S. Small Business Administration (SBA) is announcing a new working capital pilot program (per CNBC interview) of up to $5M to fund small businesses.  The program offers a newly structured line of credit designed to give greater flexibility than a traditional term loan.  Here is the actual SBA Press Release for more details.

 

• Beal Bank has launched a new online site called Better by Beal for online CD purchases.  Equipped with the tagline “With Better by Beal, you get CDs with great rates, plus an elegantly simple account experience. It’s not rocket science. It’s just Better.”  (Bold emphasis added by Uncle Sean).
  • LOL - that’s fantastic since Andy Beal (founder and Chairman) is a bit of a rocket scientist as well as many other distinctions.  Nicely done by the Beal Bank marketing Team – I love it!!!🤓🚀

 

• A few personnel moves:
  • Navan appoints Amy Butte as CFO ahead of an anticipated potential IPO.
  • LawFi adds Jason Rosen as Advisor.

 

• Notable FinTech funding for the week:
  • Nium (cross-border payments) raised $50M in Series E funding round at a $1.4B valuation.
  • Torpago (commercial credit card and spend management platform designed for banks) raised $10M in Series B round.
    • In the old days, we called that Treasury operations and Merchant Services at the bank – but I like what they are doing here.  😊
  • Lendbuzz (AI-based alternative credit platform for car financing for consumers and dealerships) raised a $100M warehouse facility for continued loan origination growth focusing on the 40% of the US market with no credit, thin credit, and near prime.
  • Fizz (banking app with debit card and automated credit builder with financial literacy program) raised $14.4M in Seed round funding.

 
 
Random Uncle Sean stuff:

• Around the world…  Thursday, June 6th was the 80th Anniversary of D-Day.  Mexico elects Dr. Claudia Sheinbaum as President (holy smokes she has an impressive list of accolades).  China landed a spacecraft on the far side of the moon.
• Sports…  The NBA Finals started with the Boston Celtics absolutely dominating the Dallas Mavericks in Thursday’s Game 1…  Congratulations to the Sooners as Oklahoma wins 2024 Women’s College World Series and becomes the first NCAA softball team to win four straight national titles.  Boomer Sooner!!!
• And here we go – Dad / Bad Jokes to kick off the weekend:
  • The magician told me to “pick a card, any card!!!” So I took his credit card! 😁
  • Isn’t it a little strange that a restaurant named Popeyes doesn’t serve spinach…??? 🤔😄
  • Pretty sure my spirit animal is that one little bird that knocks itself out flying into windows! 😂
  • And last but certainly not least…  Always remember that laughter is the best medicine - unless you have diarrhea!!! 😧🤠

 
 
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.