Uncle Sean's Update - 7/19/24

​Happy Friday!!!
 
So many super cool announcements and product launches this week – so let’s jump right to it! 🤠 Here is the Uncle Sean Update for 7/19/24:
 

• More payments flex 💪 – this week it is Nacha reporting significant increases in 2Q2024.  Some highlights:
  • 8.3 billion ACH payments in 2Q (up 6.3% over last year) with dollar volume of $21.6 trillion (up 7% over last year)
    • B2B volume increased 10.9% and P2P volume increased 13.9%
  • Same Day ACH had 292.3 million payments in 2Q (up 46.6% over last year) with dollar volume of $803.3 billion (up 31.1% over last year)
    • Same Day ACH exceeded 100 million payments in a month for the first time in April

 

• Transend (business working capital) partners with Midland States Bank to launch B2B private-label working capital solution for suppliers on a national platform.

 

• FIS (NYSE: FIS) launched SMB Digital Lending solution in partnership with Lendio to streamline and automate the SMB lending process (from sourcing to funding) for financial institutions by leveraging advanced data analytics and machine learning.

 

• PLS (operates over 200 community financial service centers across the country) has partnered with Green Dot (NYSE: GDOT) to launch the Xpectations!® Plus Debit Card and suite of online banking services for PLS’ five million-plus customers.  WOWZA!!!! 💥

 

• This match makes perfect sense and Uncle Sean love’s these win-win-win scenarios.  Clair (bank-issued EWA platform with Pathward, N.A.) has partnered with Gusto (payroll and benefits platform) to embed EWA to employees of Gusto’s 300K business clients via the Gusto Wallet. 

 

• InComm Payments announced a “New Way to HSA” (now that’s a great line! 😉) with the launch of InComm Benefits division providing automated and intuitive Health Savings Account (HSA) and Flexible Spending Account (FSA) services with Visa debit card and mobile app (banking services provided by Coastal Community Bank).  Check it out at www.incomm.com/benefits/ - that app is really cool!!!

 

• Estu (university student life focused fintech) launched their new all-in-one mobile app to help students manage finances, academics, and social life.

 

• In the rumor mill…  It is being reported that Klarna (BNPL) is weighing financial advisors for a possible U.S. IPO as early as next year.  🤷‍♂️

 

• Stratyfy (AI/ML credit decisioning) has partnered with Prism Data’s cash flow based underwriting to help lenders make more informed decisions where traditional credit underwriting falls short.

 

• 👀 More Pay-by-Bank headlines…  Aeropay (pay-by-bank / A2A platform) announced the launch of Aerosync, their proprietary bank aggregator platform enabling secure access and standards for open bank connectivity, data accuracy, and customer experience.  This comes just two months after their $20M Series B funding round back in May (sporting 10X revenue growth over the last year).  Nice! 🚀

 

• Episode Six (E6), payments-as-a-service, launches cloud-based global issuer payment solution in AWS marketplace allowing “AWS customers the ability to find and deploy the E6 cloud solution seamlessly.  Check out their paytech platform for banks and fintech companies at episodesix.com – tell them Uncle Sean sent you! 😊

 

• Another tough week on the regulatory front:
  • Rumored to be coming for quite some time (and addresses issues from several years ago), the FRB finally issued a public Enforcement Action against Green Dot and civil money penalty of $44M (ouch).
  • The FRB also issued an Enforcement Action against Jiko Group, the bank holding company for Mid-Central National Bank, to improve upon and utilize Jiko’s financial and managerial resources as a “source of strength” to the bank – to which Jiko has already begun to take steps “including by raising additional capital and reducing expenses…”
  • Of course the week would not be complete without a CFPB announcement.  On Thursday, the CFPB proposed an interpretive rule explaining that many paycheck advance products, sometimes marketed as “earned wage” products, are consumer loans subject to the Truth in Lending Act.
    • As you can probably imagine, this is sparking plenty of debate from all sides.  This CNBC article is a pretty good summary.

 

• 👀Very interesting speech this week by Fed Governor, Michelle W. Bowman regarding Liquidity, Supervision, and Regulatory Reform with perspective into the bank run / bank failures last year; and insights into borrowing availability, collateral flow, and the speed at which money can move in times of stress.  Definitely worth a quick read. 💯

 

• Some personnel moves:
  • Webster Financial Corporation (NYSE: WBS, the bank holding company for Webster Bank, N.A.) announced the appointment of William (Neal) Holland as Executive Vice President and CFO for both the holding company and the bank.
  • Allied Payment Network adds Hank Vanjaria as Chief Financial Officer.
  • April names former Raj Doshi as President and COO.

 

• Notable FinTech funding for the week:
  • TruckSmarter (financial services for freight / trucking) raised $50M debt facility with an option to increase to $100M to expand its financial services offerings.
  • Aven (consumer credit card backed by home equity) raised $142M in Series D funding round.
  • Coast (fleet expense management) raised $40M in Series B round.
  • Slope (AI Order-to-Cash / B2B payments) raised $252M in capital consisting of $77M in equity and $175M in debt financing.

 
 
Random Uncle Sean stuff:

• It’s here!!!!  The Paris 2024 Summer Olympics kicks off next week.  Sadly, Patrick Rivenbark and I did not make the 2024 Breakdancing Team – LOL!!!! 🤠  But hey, there’s always 2028!
• Aunt Patty and I will be celebrating our birthday next week – Yes, we have the exact same birthday.  Same year too, but I always enjoy reminding her that she is 8 ½ hours older than me (which I think makes her a cougar – LOL)! 🎂🎉😆
• Here we go – this weeks Dad / Bad Jokes:
  • Once you accept the fact that queso and margaritas taste better than being skinny, the second half of your life begins! 🍹
  • “You may all go to In-n-Out, and I will go to Whataburger.”  - Davy Crockett 🤠🍔
  • There are three types of people in this world.  Those who are good at math and those who are not… 🙄
  • There are no knock-knock jokes about America….  Because freedom rings!
  • I was confused as to why my computer kept singing….  But then I realized it was “a Dell”…. 🎵🎶

 
 
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.