{ "docId": "019dd923-622c-750b-8b99-91010c0bd592", "docSlug": "937587dba6b9", "documentTitle": "Intuit Inc. (INTU)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2024-09-20 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 64, "pageCount": 125, "prevPage": 63, "nextPage": 65, "slideType": "villain_critique", "function": "name_villain", "density": "dense", "nDataPoints": 4, "notes": "The slide uses a combination of a line chart showing rising enforcement actions and news headlines about failed banks (Cross River, Silvergate, Signature) to build a case against the partner bank.", "elementsJson": [ "headline_text", "paragraph", "line_chart", "screenshot", "callout_box" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-91010c0bd592/64", "deckHref": "/decks/019dd923-622c-750b-8b99-91010c0bd592", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-91010c0bd592.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-91010c0bd592#slide-64", "components": [ { "bbox": { "h": 0.08, "w": 0.48, "x": 0.02, "y": 0.88 }, "kind": "callout", "text": "In an industry sector rife with serious concerns, why would Intuit work with one of the smallest players?", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b4595c09-6ab1-4154-ae94-6983a9da53ae", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.48, "x": 0.02, "y": 0.43 }, "kind": "chart", "text": "BaaS banks accounted for 13.5% of severe enforcement actions issued to US banks in 2023", "attrs": null, "subkind": "line", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5c6c988b-6732-436d-b50b-2ac5c074f6ad", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.46, "x": 0.52, "y": 0.43 }, "kind": "list", "text": "Examples of Major Issues at Other BaaS Providers", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9b7dcf28-359d-48f9-b4f2-2f0371c2c41a", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "enforcement actions: 13.5%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-1ac4-74a6-be38-e77f6bd555d3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.96, "x": 0.02, "y": 0.17 }, "kind": "paragraph", "text": "MVB Bank is a subsidiary of MVB Financial (Nasdaq: MVBF), a $250 million market capitalization bank holding company headquartered in Fairmont, West Virginia. Like a number of other banks, MVB has sought to super-charge its deposit and revenue growth by providing the banking back-end (BaaS) for an array of fintechs, including crypto exchange Kraken. Credit Karma uses MVB Bank as its bank partner for its Money offerings. Several similarly aspiring fintech partner banks have encountered serious issues, and MVB Bank raises several concerns. In summary, (1) we believe the biography of CEO Larry Mazza raises several red flags, (2) disclosures regarding the bank's CFO are inconsistent and troubling, (3) the bank's “Audit Chief” recently joined from Silvergate where he was Chief Audit Executive, (4) MVB's Chief Risk Officer resigned in early June, (5) the bank's auditor is small, Tampa-based Forvis, and (6) the bank launched a corporate venture fund, which seems highly questionable for a small-town bank. Frankly, we are shocked that Intuit would associate with such a financial services firm.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d71bd61c-ade6-4975-8347-917ef1bf64ef", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.6, "x": 0.02, "y": 0.97 }, "kind": "source-note", "text": "Source: S&P Global, American Banker, Small Business Administration press release, Reuters, Wall Street Journal, Spruce Point Research", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0d6dbdb6-f65d-4a1c-95c0-9da3c1fb0229", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.65, "x": 0.31, "y": 0.03 }, "kind": "title", "text": "We Believe Credit Karma's Partner Bank Is Problematic; Why Submit Customers To These Risks?", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "50fd3433-1423-4f77-ace8-8adf7b9753d8", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Villain slide", "slug": "villain-slide", "agent": null, "layer": "slide", "matchId": "76208fad-8014-4ddb-a230-c938faa4e1cf", "evidence": "The slide presents a critical view of Intuit's partner bank, MVB Bank, and highlights potential risks associated with it.", "confidence": 0.9 } ], "frameworks": [ { "name": "antagonist-introduction", "slug": null, "matchId": "b2dca4c8-1d85-413d-a4b9-73cd19eae645", "evidence": "The slide explicitly frames MVB Bank as a problematic entity and a risk to customers.", "confidence": 0.9 } ], "arcBeats": [], "loops": [ { "to": 70, "from": 60, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "3a181ada-8a80-4196-99c4-dd9d00ad32fd", "evidence": "The authors present a series of concerns related to Intuit's business practices, highlighting potential risks and negative consequences.", "position": 2, "objective": "to highlight the potential consequences of Intuit's alleged malfeasance", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }