FinTech news events were pretty light due to the short week related to the observance of Martin Luther King Jr. Federal Holiday; and just a few other things going on in our Nation’s Capital - LOL! Here are the highlights for the Uncle Sean Update for 1/22/2021:
LendingClub receives regulatory approvals to acquire Radius Bank. Deal is expected to close on or around Feb 1, 2021 per the LendingClub press release following the customary 15 day Federal Reserve waiting period. If you are kind of a dork like me, this is actually a “reverse merger” since the surviving entity is the Radius Bank charter. We will undoubtedly see more of these so here is the flow: Lending Club becomes a bank holding company by acquiring Radius Bancorp, thus assuming full ownership of Radius Bank (you can’t be a bank holding company without owning a bank). Then they change the name of Radius Bank (but keep the charter number) to LendingClub Bank, National Association. See – that description didn’t hurt too bad now did it?!?!?!
Third time’s a charm (or is it?)… Rakuten Bank American files for FDIC Insurance again via pending Utah ILC Charter.
This is their 3rd attempt in less than 2 years. In an interview with American Banker, Rakuten Bank America CEO Lee Carter said the company filed its latest application on Jan. 15. Rakuten proposed a business model that is significantly simpler than what was envisioned in its previous applications.
Plaid launches FinRise, a new fintech incubator that looks to empower early-stage entrepreneurs that are Black, Indigenous, or People of Color (BPIOC). Read more about the program here - Plaid Blog - FinRise
KeyBank to expand their existing Direct Bank (Laurel Road) from student loan refi and mortgages to include loans and deposit products for Doctors per this BankingDive article. Coincidentally (or not - LOL), they also announced their intention to close 70 branches (7% of their physical network) in 2021 per their KeyCorp 4Q20 Earnings Transcript.
The Honorable Dr. Janet Yellen is on track to become the first female Treasury Secretary after serving as the first female chair of the Federal Reserve. Per this CNBC article, the Senate Finance Committee voted unanimously to approve with a 26-0 vote; and the next step is entire Senate vote. Jim Kramer likened Janet Yellen to Tom Brady, unflappable under pressure – that is awesome!
We lost Mr. Henry “Hank” Aaron this week. Boxing legend Muhammad Ali once called Hank Aaron “The only man I idolize more than myself.” Check out this wonderful article by ESPN - Hank Aaron impact measured by more than just home runs. Tributes have been pouring in over social media and other platforms from Barack Obama, George W. Bush, Dan Rather, Magic Johnson, Jimmy Carter, Johnny Bench, Russel Wilson, and many, many others.
Random Uncle Sean Stuff:
We bought an air fryer this week. Our first test run was sweet potato fries and it was nothing short of heavenly!!!!
I read where Austin Community College (no affiliation – Uncle Sean is a proud Texas State Alumni) recently converted an empty shopping mall into a college campus. What a great example of positive change by repurposing retail commercial real estate. “Located inside what was once a major shopping mall, ACC Highland is a national model for sustainable, adaptive, community-minded reuse. It’s the college’s largest campus and still expanding. With indoor fountains, unique study spaces, a park, and many neighboring businesses, there’s plenty to explore.”
Have a GREAT weekend and please stay safe!!!!!
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at firstname.lastname@example.org | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | email@example.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.