Uncle Sean's Update - 8/15/25

Happy Friday!!!
 
Don’t forget to sign up here to have the FinTech Cowboys and Uncle Sean’s Weekly Update delivered straight to your inbox every week!  Here is the Uncle Sean Update for 8/15/25:
 
Of course Uncle Sean can’t help but geek out 🤓 on some macro-economic data right off the bat!!!
 

• “Rate Watch 2025” is back on…  This week the BLS July CPI Report came in below expectations at 2.7% YoY (expectation was 2.8%, last month was 2.7%) with Core CPI a tad hot at 3.1% (expectation was 3%, last month was 2.9%).  Monthly was 0.2% as expected.  Yeah, I saw the PPI report shows biggest surge in three years, but we will need to see this play out a few more months to see how much is absorbed by businesses / supply chains versus how much is passed on to the consumer – we just don’t know yet.
  • Warning – here is an Uncle Sean geek moment 🤠…  Recall last summer we had some lower monthly CPI readings…  These are running off now making it look like inflation may be hotter than it really is on a YoY basis.  As a result, it might be more directionally accurate to annualize the last few monthly results.  If we annualize the last 6 monthly readings, we end up with a 1.8% projected headline CPI [((0.2-0.1+0.2+0.1+0.3+0.2)/6)*12].  Hey – just trying to focus on some good news!!! 😊
  • Another side note – I found this Dallas Fed article “falling rates no assurance of homeowner refinancing binge” to be quite interesting showing the bulk of mortgages being at least 200 bps below current 6.8% trend – so no good news in the refi market… 🫤
  • 👀 There will be plenty of attention towards Fed Chair Powell’s speech on economic output at the Kansas City Fed’s annual central banking conference in Jackson Hole, WY next week (Aug 21-23 “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy").
  • Next FOMC meeting is Sept 16-17 with more economic data to come between now and then.

 
Now back to the rest of the update 😊!!!
 

• 😬 The CFPB moves to hold Synapse accountable for missing customer funds alleging unfair acts or practices and failure to maintain adequate records of consumer funds (an estimated $60M - $90M of which has still not been recovered after 18 months in bankruptcy).  Seen as an option of last resort, the CFPB might be able to use unallocated Civil Penalty Funds to make victims whole without payment from the debtor’s estate.
  • H/T to Jason Mikula as the original source covering this story last week (he has been amazingly thorough at leading coverage of the Synapse saga).  Be sure to follow his Fintech Business Weekly for weekly deep dives into fintech headlines.

 

• Meanwhile…  Evolve Bank & Trust (FDIC 1299, total assets $1.5B) appoints Bob Hartheimer as CEO effective immediately. 👏
  • “Appointing Bob Hartheimer as CEO marks a turning point for Evolve,” said Board Chairman Steve Valentine. “Bob was selected for his unmatched corporate experience in strategically navigating challenges at financial institutions and enabling banks to move past their regulatory challenges. He has the full backing of the Board to take decisive action, restore thoughtful innovation, and lead Evolve into a future defined by transparency and sustainable growth. This is a structural change, demonstrating our continued commitment to doing the hard work to earn back the trust of our customers, employees, regulators, and investors.”
    • 👉 This comes at a pivotal time for Evolve Bank & Trust as they are still deeply enthralled in the Synapse middleware meltdown; major fintech client exodus, expensive litigation (including an $11.9M data breach settlement); and an ongoing FRB enforcement action regarding AML, risk management, and consumer compliance programs.  Not an easy job by any stretch of the imagination, but it certainly appears that Mr. Hartheimer has the pedigree to tackle this. 👍

 

• Modak (family banking app for kids and teens) partners with Legend Bank, N.A. (FDIC 3108; total assets $1.2B) as new sponsor bank 💥 for their family banking app focused on building responsible financial habits and money management skills.
  • “Trust is everything when you’re building financial tools for the next generation,” said Madhu Yalamarthi, CEO and Co-Founder of Modak. “That’s why we chose to work directly with a sponsor bank that shares our standards for transparency, security, and real-time accuracy. With Legend Bank, we’re able to reconcile every user ledger daily — a level of operational clarity that puts our families first.”
    • Personally, I love seeing community banks flex 💪 compliance as a competitive advantage – particularly when it comes to sponsor banks.  Congratulations to all involved!!! 🎉

 

• 👀 MeridianLink (NYSE: MLNK) to be acquired by Centerbridge Partners for $2B in cash (cha-ching!) and taken private.
  • 🤔 Just some random Uncle Sean thoughts...
    • Recall a few years back when Centerbridge acquired CSI for $1.6B in cash (announced Aug 2022, completed Nov 2022); then in Dec 2023, CSI announced the acquisition of Hawthorn River LOS platform.
      • Makes me curious as to why the MeridianLink digital lending platform was acquired by Centerbridge as opposed to direct via CSI (like Hawthorn River was)? 🤷‍♂️ I am quite certain that folks WAY smarter than me are driving this; but I am still very intrigued to see how this eventually plays out!!

 

• Some good news here as DCI partners with FIntegrate Technology to bring a cost-effective, seamless solution for migrating legacy data during the core conversion process via FIntegrate’s FusionLRS image and data conversion system. 👏
  • Definitely a hot topic 🔥 as FedFis sees core conversions (both organic and from M&A) set to accelerate after years of pent-up demand in the space; ultimately creating an industry-wide conversion bottleneck.  For DCI banks looking to make acquisitions, this is extremely helpful during system integration.  For non-DCI banks looking to convert to DCI, this is a game changer.  🚀

 

• And check out my friends at Revio Insight as they continue to make headlines (do these folks sleep at all?)!!! 🚀
  • Kasasa announced a strategic partnership with Revio Insight to help Community Financial Institutions to “better identify where deposits are leaving, which competitors are capturing customer relationships, and how to take action to retain and grow wallet share.”
  • And per this LinkedIn post, First Financial Bank (FDIC 3066; total assets $14.3B) has also partnered with Revio Insight.  Revio CRO Sanjay Bhaskar stated, “First Financial knows that winning a greater share of wallet begins with a data-driven understanding of customers’ needs. With the Revio Insight platform, the bank can see granular and strategic insights related to its customers. This will enable them to prioritize engagement, deliver precise personalization, and create highly relevant offers that resonate.”  Great win for the Revio Team with a strong Texas bank!!! 💥
  • Oh, and congrats to Enya Hardman as Revio’s new Director of Customer Success! 😊

 

• Candescent makes a couple of executive announcements as John Garvey has been named COO; and Peter Gray has been appointed Vice President of Professional Services and Delivery.

 

• Leading BaaS sponsor bank Coastal Community Bank (Nasdaq: CCB; FDIC 34403; total assets $4.5B) expands Executive Team with Key Leadership appointments.
  • Notably, Ryan Hall from SoFi has joined as Chief Product Officer, Michael Costigan has been appointed Chief Commercial Officer, Freddy Rivas has joined as Chief Credit Officer, and Chris Morgan has been named Chief Information Security Officer.

 

• Jack Henry (Nasdaq: JKHY) has a series of announcements this week, including:
  • The launch of "MyFinancialHealth" on the Banno digital banking platform powered by Array.  Allows banks and CUs on the Banno Digital Platform to embed consumer tools to help accountholders “monitor and build their credit, protect their identity and privacy, and manage their online subscriptions and federal student loans, all in one place.”
  • JKHY’s continued push into SMB solutions with the launch of Tap2Local in collaboration with Moov.  Also offered via the Banno Digital Platform, banks and CUs can offer their merchant clients “the ability to accept debit and credit card payments directly through tap-to-pay on both iOS and Android devices, eliminating the need for additional hardware, as well as continuous account reconciliation to the accounting platform of their choice. Transactions are processed through all major card networks.”

 

• The NY Attorney General has filed a lawsuit against Early Warning over Zelle fraud just 5 months after the CFPB dropped their federal suit over the same matter.

 
 
Random Uncle Sean stuff:

• Congrats to Petunia (a 2-year old hairless English-French bulldog mix) as she now has the dubious distinction of winning the World's Ugliest Dog contest.  With a gentle soul, her “unique beauty” is described as “a mix between Yoda, a hippo, and a bat.” 🤠  Okay – she’s actually kind of pretty - LOL! 🐶❤️
• You know what time it is…  It’s time for the Dad / Bad Jokes to get us into the weekend vibe!!!
  • I used to be cool…  But now I say things like, “I better sit up so I don’t get heartburn.” 😬
  • I read somewhere that laughing for 2 minutes is just as healthy as a 20-minute jog,  So now I’m sitting in the park laughing at all the joggers! 🏃‍♂️‍➡️😂
  • Speaking of running, Chuck Norris once ran a marathon backwards…  Just to see what 2nd place looks like! 🥈🤠
  • It’s hard to take pictures of Mallards…  Because they duck… 🦆😆
  • Gardening [ɡärd(ə)niNG], noun: By far the most expensive way to get food for free (but my $1,200 tomato looks great)…🍅🥕🤣

 
 
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.