Uncle Sean's Update - 9/30/22

​Happy Friday!!!
 
WOW – I can’t believe we are heading into the 4th quarter of the year already!  Also, can someone PLEASE tell the stock market to quit day drinking during the week???  Don’t forget to sign up here to have the Uncle Sean Update delivered straight to your inbox.  Here is the Uncle Sean Update for 9/30/22:
 

• A BIG HIGH FIVE to our friends at Fitech by Deluxe as a Premier Sponsor to the Bankers Helping Bankers platform (BHB) furthering BHB’s mission of empowering community banks through data and facts!!!  These quotes say it all:
  • “The accessibility of data and connectivity made possible by Bankers Helping Bankers underscores Fitech’s efforts to identify products that drive earnings and diversify sources of income to help insulate FIs from emerging fintechs,” said Rian Clinton, Director of Sales at Fitech by Deluxe.
  • “We are proud to be a trusted partner of financial institutions across Texas and the country, and we are proud to support Bankers Helping Bankers as they connect FIs with access to industry opportunities,” said Matt Mingenback, President of Fitech by Deluxe. “Together, we will help financial institutions compete and thrive as they adapt to evolving industry trends.”
  • BOOYAH!!!!!  😊

 

• Treasury Prime (BaaS enabled platform / BaaS Connector) continues to make headlines – this week they announce a partnership with Bangor Savings Bank (FDIC 18408; Total Assets $7B) to enable embedded finance / BaaS offerings to the bank and the companies it partners with in the financial services industry.

 

• Battle Bank (proposed de novo digital first bank in organization) has selected Savana (financial software for banks and fintech companies) “to automate processes between the core products and customer channels.”  Battle Bank will also be using Savana’s newly launched online and mobile digital banking experience for consumer banking, business banking and account opening.
  • This comes on the heels of a $45M Capital Raise last month to accelerate Savana’s core agnostic, customer-centric banking operations through their Digital Delivery Platform.  Check them out at savanainc.com – pretty cool!

 

• Quaint Oak Bank (FDIC 35497; Total Assets $752M) selects Teslar Software to enhance the banks commercial lending strategy by digitizing the entire end-to-end lending process.
  • Uncle Sean is keeping an eye on Quaint Oak Bank as I am hearing great things to come…!!!!

 

• The PNC Financial Services Group, Inc. (NYSE: PNC; BHC for PNC Bank, NA – FDIC 6384; Total Assets $534B) acquired Linga, a cloud-based restaurant operating system providing POS and payments solutions and more.

 

• Additionally, PNC Bank announced a partnership with Blend to digitally optimize the company's end-to-end online mortgage application process.  Basically making it easier for a customer to apply for a mortgage and import bank and payroll information directly into the application portal.

 

• Chase and DoorDash announced plans to launch the DoorDash Rewards Mastercard credit card.  Also worth noting, Goldman Sachs is reportedly (although no official announcement yet) launching a T-Mobile credit card.
  • This comes just a few weeks after a JPMorgan note to investors showing Goldman Sachs loss rate on cc loans of 2.93% for 2Q being the worst among big US card issuers and “well above subprime lenders.”
    • Hmmm - bad blood brewing….???  😲

 

• And this is interesting…  Nexo (crypto lender) has reportedly acquired an undisclosed stake in Hulett Bancorp, the bank holding company that owns Summit National Bank (FDIC 25054; Total Assets $96M), an OCC chartered bank.  The press release states that Nexo intends to offer “bank accounts, asset-backed loans, card programs, as well as escrow and custodial solutions through Summit National Bank.”
  • Also announced this week, eight states file cease-and-desist orders against Nexo for allegedly offering interest-earning accounts without registering them as securities by “allowing investors to deposit assets with Nexo in exchange for earning yields as high as 36% on their deposits.”  Sound familiar, anyone….???
  • Something tells me we haven’t heard the last of this story from the SEC, the OCC, and States.  Mhmm…..

 

• FTX US wins the auction to acquire Voyager Digital, the bankrupt crypto brokerage, subject to approval by the U.S. bankruptcy court on October 19th.  FTX US’s winning $1.422B bid was comprised of approximately $1.311B worth of fair market value of Voyager’s current crypto holdings plus $111M in incremental valuation. 

 

• IBAT joins the U.S. Chamber of Commerce and many other co-plaintiffs in suing the CFPB for overreach of authority.

 

• More CFPB news as they sue MoneyLion for allegedly violating the Military Lending Act by charging in excess of the 36% cap on loans to servicemembers and their dependents “through a combination of stated interest rates and monthly membership fees.”

 

• Rho (neo business bank) announced the development of Prime Treasury – a tailored treasury management platform targeting businesses with over $5M in liquid assets (they have other treasury solutions available for those with less than $5M).  Uncle Sean gives a nod to great timing as the bond market and treasury rates have made a screaming comeback recently.  Good stuff!!!

 

• FinTech funding news did slow down a little this week.  We shall see if this is an anomaly or the beginning of a trend.  Notable FinTech funding for the week:
  • Tactic (crypto accounting software for businesses) raised $11M in capital
  • Strike (bitcoin payment app for consumers and merchants) raised $80M in Series B funding round.
  • Noble (embedded no-code credit solutions) emerged from stealth and announced $15M in Series A funding – check them out at benoble.io.
  • Inclined (digitized platform for loans against existing whole life insurance) $15M in Series A funding round.
  • Bridge Money (mobile app offering supplemental income via cashback, surveys, ad viewing, etc.) raised $5.8M in Seed to continue development including more in-app money making opportunities.

 
 
Random Uncle Sean Stuff:

• I am cutting out a early today (don’t tell my boss) for some weekend shenanigans, so I am keeping this short – but I would be neglecting my duty if I didn’t lay some Dad Joke wisdom down:
  • I hate it when you try to leave work a little early on Friday and the Boss reminds you it’s actually Monday and only 9AM - DANG!!!
  • Shout out to the folks that can’t find their reading glasses because they are on top of your head – y’all are my people!!!
  • Self-reflection time….  Sometimes Uncle Sean gets road rage walking behind people at the grocery store.  LOL!!!!
  • And lastly…  What did the buffalo say to his boy when he sent him off to college?  Bison…. 😝

 
 
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.