FinTech IPO Index Skids 6.6% as Platforms Plunge Double Digits 

The Fed may not cut rates as soon as many on Wall Street would have hoped.

And that means, at least for now, dampened enthusiasm for loans, perhaps some pressure on loan payments …

… and so the FinTech IPO Index plummeted 6.6% in a wild week of trading.

Platforms Lose Ground

The platforms were the ones hardest hit, and we’re not even privy yet to how fourth quarter earnings fared. 

But the big banks have already weighed in with their results, have noted that deposits are declining and card delinquencies are creeping up.    

We’ll know more when these and other companies report earnings. But macro sentiment rules the day now, and macro sentiment has been sour. 

With the specter of interest rates staying pretty much where they are, at least for now, Opendoor Technologies lost 18.3%. Oppfi gave up 14.9%. Expensify declined 14.6%.

SoFi was down more than 12%. 

SoFi announced this week that it has expanded its new small business marketplace within the SoFi product experience, connecting directly to providers, and tied to a single application process.

nCino shares slipped 8.3%. 

The company said last week that Conexus Credit Union has selected nCino’s Commercial Banking Solution to increase automation within their business workflows. 

The companies said that through a single platform, Conexus will also implement nCino’s Automated Spreading Solution, powered by nCino IQ (nIQ); and nCino’s Portfolio Analytics and Document Management Solutions.

Alkami shares wee down around 1.7%

As per an announcement this week, Elevations Credit Union has launched Alkami’s online business and retail banking platform. The joint efforts provide the CUs with self-service tools, improving account opening capabilities.

Paymentus shares lost 7.6%. 

As noted in this space,  property managers can now access Paymentus’ electronic billing and payment solution through the Yardi Voyager platform. This ability follows Yardi’s designation of Paymentus as a fully qualified Yardi Standard Interface Vendor. With access to the Paymentus solution, residents can make instant payments using PayPal, Venmo and other digital wallets, among other options, according to the companies.

Robinhood shares gave up more than 12%. As reported by The Wall Street Journal and other sites, Robinhood has agreed to pay a $7.5 million fine, thus settling a case brought against the company by the state of Massachusetts over Robinhood’s use of “gamification strategies.”    

As reported, the complaint stretches back to 2020 and the allegations contended that Robinhood had failed to implement controls to protect inexperienced investors. The settlement includes the stipulation that Robinhood remove emojis from transactions, limit certain images and limit some of its push notifications. Robinhood neither admits or denies wrongdoing in the case.