Unidentified Analyst : And then, with all the actions, you guys have taken the initiatives you have going on the bass program, as we look out over the next few years, what is like a realistic mix of revenue? And if you have a target or anything and kind of like spreading Converse fee income, trying to get an idea of what that could look like over the long-term?
David Becker: Well, Tim, if I had a crystal ball that could do that, I could make a small fortune on that prediction. The bass world, it was the darling of everybody 12, 18 months ago, now everybody’s question is, should we be in there and two or three American Banker articles in last couple days mentioned run from the bass worlds and play. There is a tremendous opportunity to partnerships with great folks like the ramp organization that we’re working with. Now, on the bill pay services. There’s a lot of those out there. Obviously, there are banks and fintechs, getting in trouble with the regulators, because they’re not doing the proper due diligence and the overseeing on the compliance issues, which is one of the reasons we’re a little slower to market than a lot of other people because we wanted to make sure we had the house in order and we could handle it, our prior acquisition opportunity would have given us a great team, we had to build that.
So we’re very thoughtful, very judicious. I’ve used the term several times on the calls that were kissing a lot of frogs to find the princess. And we think very good companies in the pipeline. The one I talked about a minute ago, the neobank can be an absolute, it can be the unicorn that just blows up. And that’s deposits, that’s fees, that limiting income, there’s just a ton of things that could come out of that. So we were probably that half a million to a million in revenue for ’23. That might be a little bit to the conservative side with some of the things that are in signed, sealed, delivered in, in the pipeline. But we’ll have a better handle on that as the year goes by. And, again, we see how the market settled. There are some other institutions that might have to exit from some of their programs.
And we could be in a position to pick up some very well established customers just because they got into regulatory issues that we could pick up and move forward. So we probably can’t give him much more guidance, and that kind of 0.5 million to 1 million in revenue this year. And as these come on, and we get a handle for how they’re going to grow and go, we’ll have better numbers and we’ll update you on a quarterly basis.
Unidentified Analyst: And if I get asked one more, you maybe need a crystal ball too. But what is a realistic expectation for how these vast deposits can help on the funding side? Or like, I know, it’s still a small part of your business right now. But what is sort of the cost range? He’s deposits are coming on at and they priced it fed funds minus something, or how should?
David Becker: I would, I would tell you historically, the a lot of the bass funds were zero class. But much like HOA dollars, much like $1,031, all these funds that historically have never cost an institution anything. These folks are getting very smart. The bass companies and the fintech companies all have to make a profit. And for them to continue to survive and get VC money, they have to tow a path to profitability. So were they were giving away that deposit didn’t have any value to them. They now know they do have value? I would say ours are somewhere between fed funds minus 50, minus 75. Most of them are not above fed funds. But yes, it’s not free money. But I’d say — well, I can’t pay take that back on the other side.
