FinTech IPO Index of 2% in Tech Stock Rout
The market routes continue, pretty much everywhere you look.
Concerns over rate hikes and interest rates show no sign of easing – and technology stocks continue to take a hit.
To that end, the FinTech IPO Group was down 2%.
On a monthly basis, the group has lost 10.5%. So far this year, the index has given up 39.1%.
Profits? There were some – but not enough to bring the index into positive territory.
During the week, 9F Group rose more than 21%, although there was no company-specific news in recent days to necessarily provide a direct link to that increase.
Also on the plus side, nCino gained 12%. Earlier this week, the company said it had partnered with Codat, the universal application programming interface (API) for small business data to automate and accelerate banks’ ability to underwrite small business loans around the world. The companies said in the release that one of the first financial institutions to adopt the new integration, Recognize Bank, eliminated significant data entry requirements.
Nuvei rallied 10.4%, following news that it is partnering with Kindred Group to help support the online sports betting and gaming firm with payment services. As for the mechanics, Kindred players can deposit and request payouts across Europe. The companies have said that Nuvei’s smart transaction routing capabilities, sophisticated and customizable approach to PSD2 Strong Customer Authentication will help boost Kindred’s card approval rates.
Robinhood was 9.4% higher. The company, as reported by The Wall Street Journal, is unveiling its Robinhood “Investor Index” that tracks the performance of the 100 most popular investments among users.
“Such an index may be of interest to financial professionals who monitor the activities of small investors as one of the underlying factors behind stock market movements,” the Journal noted. Stocks in the index are weighted by a metric that will be known as “conviction,” which the Journal noted is the percentage of assets in a client’s portfolio that are in turn occupied by those stocks.
Flywire managed to advance by 5%. Last week, the payments company said that its continued expansion into Latin America includes the availability of the integration with Universitas XXI. Universitas is a university management system and the integration enables “a seamless payment experience for students and administrators, supporting both international and national payment flows.”
The Decliners
But those gains were tempered by losses in Remitly, which fell 12.1%, followed by Hippo Insurance, which was 9.7% lower. As for the latter, Hippo’s shares continue to fall about two weeks after the company said it would lay off 70 employees, or about 10% of its workforce, to help restructure the company and drive operational efficiencies.
New PYMNTS study: How consumers use digital banks
A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.
