Uncle Sean's Update - 7/15/22

Happy Friday!!!
 
It’s HOT here in Texas!!!  Here is the Uncle Sean Update for 7/15/22:
 

• WOW - there’s a ton of great things coming out of the Bankers Helping Bankers (BHB) ecosystem this week – so let’s jump right into it!!!!
  • Uncle Sean gives a huge shout out to Finzly as the latest to join the BHB BaaS Association!
  • And just in case you missed it, Bankers Helping Bankers announced the launch of the BHB Fund (yep, you read that correctly)!  A fintech venture capital fund managed by Latitude38 Venture Partners to support community bankers’ engagement with emerging technology providers.
    • This gets really cool when you consider the entire BHB ecosystem…  It creates a compounding effect when combining the BHB Platform, the BHB BaaS Association, and now the BHB VC Fund.  At the center of this ecosystem is FedFis data – no surveys and no BS.
    • Hmmm, Uncle Sean can’t help but wonder what comes next out of this BHB ecosystem – a vendor accelerator program maybe???  Who knows what fintech wizardry is being concocted with likes of FedFis, IBAT, and Bankers Helping Bankers….  Stay tuned as we continue to “scare the $hit out of the big 4” and make community banking cool again!

 

• It was a tough week for inflation as BLS pegged CPI at 9.1% over last year – yep, I’m feelin’ it….  The good news is that many are saying this is finally the peak (let’s hope so); and the employment / jobs data remains strong for the US consumer for now.  Fingers crossed…
  • Certainly sets the stage for continued aggressive rate increases at the July 26-27 FOMC meeting.

 

• A handful of BNPL highlights (because it beats the hell out of reading more Elon Musk / Twitter drama - 😊):
  • After weeks of rumors and speculation of a massive down round, it’s official….  Klarna announced $800M funding round at a $6.75B valuation which is down about 85% from their $45.6B valuation last year.  Klarna puts a good spin on it showing pretty much everyone is down 80%+ and valuations were a bit lofty last year (ya think?).  But those expanding credit losses and cash burn remain a concern (see Klarna 1Q2022 financial results – one SEK equals about .095 USD for reference).
  • OpenPay is exiting the US, just a few months after exiting Europe, to focus on Australian operations.
  • Zip and Sezzle mutually agree to terminate their merger agreement citing “current macroeconomic and market conditions” to which Zip will pay Sezzle an $11M termination fee.
  • Synchrony announced Synchrony SetPay in 4 BNPL solution via the Clover® point-of-sale and business management system from Fiserv, Inc.

 

• Kinly (BIPOC focused neobank) selects MX for financial data aggregation via MX’s open finance API’s.

 

• BMO Harris Bank announced an increase in minimum wage pay to $20 beginning August 7,2022.  BMO Harris Bank joins the ranks of Bank of America, Truist, Wells Fargo, and JPMorgan Chase making similar moves recently.

 

• The crypto fallout continues as Celsius (crypto lending) finally filed for Chapter 11 Bankruptcy less than a week after hiring Kirkland & Ellis LLP to replace their existing law firm (Kirkland & Ellis LLP is the same firm that is handling the Voyager bankruptcy).  This comes about a month after they halted all customer withdrawals.

 

• Well now – this is getting interesting….  Seems that the founders of recently bankrupt crypto hedge fund 3AC are missing and presumed “on the run” and have not begun to cooperate with BVI liquidation orders “in any meaningful manner” (insert Mission: Impossible theme song)…  WOW…  😲

 

• Notable FinTech Funding for the week:
  • Uprise (private wealth management tool) raised $1.4M in pre-seed funding.  Although still in beta, Uprise has “tracked $50M in assets so far.”
  • Quiltt (low code fintech platform for embedded finance) $4M in Seed round
  • Capchase (alt lending – business sales financing) raised $400M in debt financing and announced Capchase Analytics dashboard.
  • Apiture (digital banking for FI’s) raised $29M in capital led by Live Oak Bank.
  • Pebble (personalized investments – “build your own ETF”) raised $5M in Seed funding.

 
 
Random Uncle Sean Stuff:

• This week, Elon Musk….  Oh for cryin’ out loud – who cares!!!!  LMAO!!!
• Uncle Sean bought gas this week for $4.09, and I was excited - smh……..
• How hot and dry is it here in Texas???  Well, I was at Tanner Mayo’s ranch and he has two-year old catfish that haven’t learned how to swim yet!!!  I could have sworn that a couple of ‘em had sand ticks and a sunburn as they waddled by...  drinking bottled water…  wearing sunglasses and flipflops (err – “finflops”)…  LOL!!!! 😝
• NASA released the first images from the James Webb Space Telescope.
• Ending on a serious note - take a moment and read this press release by The United States Marine Corps honoring U.S. Marine Corps veteran Hershel Woodrow "Woody" Williams who passed away last month at the age of 98.  He was the last living WWII Medal of Honor recipient.  This week, he lies in honor at the U.S. Capitol.
  • Equally as important as his valor in combat was his lifelong dedication, commitment, and service to veterans.  U.S. Senator Mitch McConnell (KY) recalled meeting "Woody" once in Kentucky, saying, "By that point, he'd been giving back to his beloved country and those who defended it for 77 years."

 
 
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.