Opendoor leads 9% decline in FinTech IPO index

A banner week – but just not in the direction investors had hoped.

Macroeconomic concerns dominated market thinking over the past several sessions, and concerns about interest rates in particular – surged sharply to the upside as the Fed posted another large interest rate hike.

To that end, the FinTech IPO Index fell 9.1% for the week, and is now 44.7% lower for the year.

SOURCE: PYMNTS

In fact, there was only one gainer in our pantheon of more than 45 names – and that was Triterras, which bucked the overall downdraft and posted a positive return of 2.7%, with no company-specific news to underpin the rise.

Blend lost 26.9% over the past five sessions, continuing the volatility seen since last month’s announcement that it had cut

Opendoor Technologies lost more than 24%, driven lower on reports that the company lost money on 42% of transactions in August as the U.S. housing market falters. We’ll note that the continued decline in Opendoor shares comes as higher interest rates have driven mortgage rates to their highest levels in 14 years. These high rates will of course have a dampening effect on property-related activity, and by extension the activity across the company’s platform.

9F Group followed close behind, having given up 20.4% – and here the volatility is well in place as the company navigates the 180-day period in which it must return in accordance with Nasdaq’s listing rules.

Paymentus was down 19.3%, followed by Katapult, which fell 15.5%.

As for the latter company, Katapult and 1StopBedrooms said in a release that a new partnership will help consumers, “especially those with little or no access to credit,” purchase furniture for the home.

Affirm lost 9.1%, where this week the buy now pay later (BNPL) player announced a collaboration with designer fashion store Intermix. Intermix customers will be able to pay for their clothing purchases in instalments. The collaboration extends to both physical and online Intermix stores, as well as the Designer Re/Mix hub.

Shares in Robinhood lost 7% for the week as the company said USDC would be the first stablecoin to be listed on the company’s platform. There was also volatility throughout the last two sessions as reports emerged that the Securities and Exchange Commission would not ban orders for payment streams.

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.