​Happy Friday!!!
Wow – another crazy busy week for everyone’s favorite source of quick market research (if I do say so myself – LOL), so let’s jump right into it!!!  Here is the Uncle Sean Update for 10/20/23:
Continued pressures in the bond market have pushed the 10-year Treasury yield to 5% (intraday) for the first time since 2007; and is up approximately 30 bps over the last week!Meanwhile, the national average for 30-yr mortgage just hit 8% for the first time in 23 years….  Whoof!!! 😬  We hear you now Chairman Powell….  We hear ya!!! 
ICYMI – the long awaited CFPB 1033 Proposed Rule and Request for Public Comment is here with the stated intention to accelerate the shift towards “open banking” in the US.Note that the deadline for comments to be received is Dec 29, 2023.Without digging into the nitty gritty details (I will leave that to your discretion), applicable implementation deadlines if/when passed are (sourced from pages 42-43):6 months from publication (i.e. final rule as published in the Federal Register) for institutions greater than $500B in assets1 year from publication for institutions $50B – $500B in assets2.5 years from publication for institutions $850M – $50B in assets4 years from publication for institutions less than $850M in assets 
Nacha released solid third quarter results of 7.8 billion payments, up 3% from the same time last year and 4.6% per processing day. The value of those payments was $19.7 trillion.Results were buoyed by Same Day ACH of 212  payments with a total value of $608 billion (increases of 20% and 27.1% respectively over 3Q22) and increases in B2B volume of 9.6%. 
Jack Henry announced the launch of Financial Crimes Defender, an AI-powered BSA/AML solution designed for real-time detection and prevention prior to transactions leaving the institution; and includes the Federal Reserve’s FraudClassifier built into the solution.This is just a few months removed from JKHY’s launch of Payrailz Fraud Monitor, an AI based payment fraud mitigation feature with configurable tolerances at the FI level. 
COCC enters into partnership with SentinelOne (NYSE:S) as a Managed Security Services Provider (MSSP) to deliver the next generation of cybersecurity to community banks. 
👀 Q2 (NYSE: QTWO) announced the launch of Q2 Fabric – a full-stack system combining a lightweight modern core and a pre-integrated fintech ecosystem enabling both banks and credit unions to launch direct digital brands (digital branch) alongside the existing FI core.“With Q2 Fabric, financial institutions no longer need to rip and replace their legacy core systems to deliver personalized digital products,” said Ahon Sarkar, general manager, Helix by Q2. “Q2 Fabric runs alongside existing core capabilities to fuel the innovative digital-first banking experiences necessary to drive deposit growth and improve profitability.”Additionally this week, Q2 announced they have partnered with Mastercard to bring debit and prepaid card programs to Helix customers. 
Grow Credit (credit builder platform) launched Credit-Building-as-a-Service tailored as a white-labeled API solution for financial institutions with an emphasis on elevating subprime customers to prime status.  Nice!!!!If you have been following Uncle Sean over the last few weeks, you know we have been seeing many fintech companies shifting from a B2C model to also include a B2B2C / white-label solution as a bank vendor as opposed to a bank competitor for a differentiated distribution strategy. 😎 
Avenu, Mainstreet Bank’s (FDIC 57742) Baas subsidiary platform, has onboarded their first client, SafariPay.  Avenu will power SafariPay’s global money transmittance service known as PaySii.Uncle Sean really likes this model of BaaS subsidiaries of a chartered institution. 😊 
The Federal Reserve Board hits sponsor bank Metropolitan Commercial Bank (MCB) with an enforcement action and fine totaling $30M (combined from NYDFS and FRB) related to a former prepaid card program (MovoCash) that resulted in $300M in unemployment benefit fraud.The action cites deficiencies in CIP (BSA/AML) and third-party risk management.Also worth noting that MCB terminated the Movo program back in 2020 and subsequently fully off-boarded Movo.   
jaris announced a partnership with Agile Financial Systems (AFS) payment processing to offer AFS customers Instant Payouts and flexible working capital solutions via the jaris platform.    
Unit launched “Lending” as a way for companies to offer credit products and capital to their customers with streamlined compliance and underwriting built in. 
Lithic expands their credit program with the new Lithic Commercial Charge Card.This comes just 2 weeks after announcing their expansion beyond cards via Lithic Accounts and ACH
Galileo announced the launch of Galileo Corporate Credit solution designed specifically to help modernize B2B expense management though a central account with a single credit limit as opposed to (up to) thousands of individual employee charge cards to manage individually at the corporate level. 
Intuit (Nasdaq: INTU) announced QuickBooks Bill Pay for SMB’s to deliver B2B payments with AP automation. 
Personnel moves:Congratulations to our friend Sanjay Bhaskar as he joins Revio as their CRO.Plaid hires former Expedia exec Eric Hart as Plaid’s first CFO.Self appoints Julie Szudarek as CEO
Notable FinTech funding for the week:Nova Credit (immigrant focused credit builder) raised $45M in Series C funding round.Stash (investing app) picked up $40M in capital in the form of a convertible note as they eye a potential IPO in the near future.Finzly (payments infrastructure for FI’s) raised $10M in Series A round. 
Random Uncle Sean stuff:
The Texas Showdown continues as the Houston Astros and the Texas Rangers slug it out for a shot at the World Series.  The MLB American League Championship Series is tied up at 2-2 as we go into Game 5 later this afternoon!!!!  A little bit weird that neither team has won a home game thus far through 4 games.  Go Stros!!!!A new world record pumpkin weighed in at 2,749 pounds – DANG!!!Yep – some first class (okay, maybe low class) Dad / Bad Jokes to get us into the weekend:The first person to sail around the world single handed…..  Captain Hook!!! 🏴‍☠️I was thinking about a diet, but I just have too much on my plate right now….  Nom, nom, nom!!!! 🍕🍔🌭If a limbo dancer sets the bar high, is that good or bad???  🤔And my favorite for the week…Sometimes I run my fingers through Aunt Patty’s hair.  It’s a nice way to remind her that I love her; and that we are out of napkins – LOL!!!!  😝❤️🤣 Yep, I’m probably gonna pay for that one…  LOL!!!! 
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.