​Happy Friday!!!
The forecast in Austin today is for 108 degrees with wind gusts of 25+ MPH…. 😬🥵  Here is the Uncle Sean Update for 8/11/23:
 The BLS July CPI Report came in at 3.2% YoY (expectation was 3.3% and June was 3.0%) – Core CPI remains a little more sticky but also improved to 4.7% (expectation was 4.8% and June was 4.8%).While still above the Fed’s 2% target, we continue to see improvements in the inflation data.    Expect smaller movements in the YoY data due to base effect from here. Monthly CPI came in at 0.2% which was almost entirely driven by shelter costs (0.4% for the month and 7.7% YoY).If you really want to get technically weird like me 😊, monthly CPI was rounded up from 0.1669% – but I digress…  CNBC has a good summary as always. 👀 CSI making some moves as they announced 12 new core deals over June and July – NICE!!!!! AMEX certainly appears to be leaning into the BaaS & embedded finance space – check out American Express Sync™ Commercial Partner Program offering B2B API’s for fintechs to embed Amex virtual cards into their own spend management / payment platforms. A HUGE congratulations to Mr. Stacey Zuniga for his promotion to Chief Revenue Officer at ENACOMM – great job, buddy!!! And more personnel updates:Cable announced they have hired Candace Sjogren as Chief Revenue Officer.Early Warning Services (Zelle and Paze) hired Cameron Fowler as Chief Executive Officer.Cloudcase announced the hiring of Emily Bogan as Chief Product Officer USAGreenlight launched a credit builder for teens by allowing parents to add teenagers as authorized users to the Greenlight Family Cash Card credit card. Did everyone see this – it’s actually pretty cool…  The FDIC recently updated the Technical Assistance Video Program as part of the Bankers Resource Center.  Could be used for internal training / education purposes for varying levels of employees (both bankers and non-bankers).  Updated video topics include:Overview of the FDIC and the Examination Process (30:10)Information for New Board Members (14:10)Corporate Governance (32:01)Interest Rate Risk (29:00)Current Expected Credit Losses (15:18) PayPal pushes ahead into crypto and launched their own U.S. dollar-denominated stablecoin (PayPal USD – PYUSD) issued by Paxos Trust Company. Note that PayPal started allowing customers to transfer, send, and receive crypto including bitcoin and ether back in Nov. 2020.Maybe slightly ironic to Uncle Sean that this announcement occurs in the same week that the Federal Reserve announced the establishment of a Novel Activities Supervision Program focused on crypto-assets, distributed ledger technology, and complex tech-driven partnerships with nonbanks to deliver financial services to customers…. InComm Payments enters into the employer health benefits arena by acquiring Zenda, a developer of AI-powered HSA and FSA solutions for employee benefit programs. Dwolla announced the launch of Dwolla Connect payments platform designed for mid- to enterprise-sized businesses.  Marqeta disclosed in their second quarter 10-Q earnings release that they extended their partnership with Block through 2027 (page 27, Item 15 of the 10-Q), which is a good thing as Block accounts for 78% of Marqeta’s revenue (page 36, Customer Concentration).  The bad news is the contract extension comes at a cost with expected lower net revenue and lower gross profit (page 52). Well, ICYMI….  Moody’s downgraded the credit rating of 10 banks by one notch, placed 6 more regional lenders on review for potential downgrade, and revised the outlook for 11 more.I was going to write about this….  Something along the lines of “well thank you, Captain Obvious”…  but…  nah…  😝HOWEVER (see what I did there – I just can’t help myself)…  I will reiterate what we discussed in our BHB – Inside the Numbers review (specifically at the 58 minute mark if you want to just hear the punchline), Uncle Sean actually expects a positive tailwind over the next few quarters of Net Interest Income for banks that are continuing to lend as the loan portfolios reprice to the higher rate structure – provided Asset Quality and employment remains intact. In that , I source a really good Fitch article from April of last year that you can find here stating, “The OCC’s recent estimates indicate that a 200-bp parallel rate shock would result in a median increase of 7% to net interest income for banks over the following 12 months.” Notable FinTech funding for the week:Parcha (AI powered compliance and operations automation platform) raised $5M in Seed round.Chargeflow (AI powered platform for preventing fraudulent chargebacks) raised an additional $11M in Seed round bringing total funding to $14M.Doc2doc Lending (alt lending platform for physicians and dentists) raised $35M in Debt and Equity capital. 
Random Uncle Sean stuff:The college athletics world is buzzing right now with gargantuan (did I spell that right – LOL) conference movements….  The Big Ten now has a stunning 18 teams, the Pac-12 has dwindled to 4 teams and may likely take a knee and bow out….  What happened???  In short, TV…  CBS Sports has a good summary.Wow – if you thought it’s been crazy in the college athletics world….  Check out the transportation logistics space – Yellow files for bankruptcy and publicly blasts the union for the demise of the 100 year old company.  Meanwhile, UPS Teamsters Union successfully negotiates $170K average in pay and benefits for their drivers – HOLY MOLY!!!! $170,000??? 😮 I think Aunt Patty would look great in brown…  LOL!!!! 🤣😂Okay, okay – on to the good stuff….  Dad Jokes!!!!I’ve been cutting carbs…  with a pizza cutter, but hey!!! 🍕😉I bet Barn Owls were relieved when humans finally started building barns.What were Electric Eels called before we invented electricity??? 🤷‍♂️(thinking I’m funny) “Hey Aunt Patty, what’s another word for synonym…???” 😜And she replies, “No it’s not!!!!”  Dang – she’s getting good…  
Have a GREAT weekend, stay hydrated, 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.