Platforms help boost FinTech IPO index by 1.3%
One week in, and October has been a seesaw. After the end of a dismal quarter and lurching towards the end of a dismal year, the FinTech IPO index has managed, at least in the last week, to post a slight uptick … to 1.3%.
But October’s showing is firmly in the red, with the index down 2.5%, and year-to-date results show the entire pantheon down more than 43%. This time, the platforms helped to bend the results.
Source: PYMNTS
Payoneer was up 14%, continuing a rally that comes in the wake of news late last month that the company hired Assaf Ronen, a veteran of SoFi, Amazon and Microsoft, to lead a newly established division that integrates Payoneer’s technology, product and high value service units.
See also: Payoneer adds First Chief Platform Officer, Forms New Division
Ronen takes his place as the company’s first platform manager and will lead the company’s new platform division. This division, according to reports, will focus on increasing high-value service offerings such as B2B suppliers (AP) and accounts receivable (AR), working capital and trade services.
Meanwhile, Bill.com rallied 12.6% over the same time frame, and new products detailed across sites like Accounting Today spotlight features like three-way matching for cloud-based accounting platform NetSuite. Purchase order and goods receipt are automatically synchronized according to the launch details.
Blend, a cloud banking software company, achieved an increase of 11.7%. As mentioned in this space last week, PNC Bank will partner with Blend to digitize the mortgage application process.
Learn more: PNC Bank and Blend Team on Digital Mortgage User Experience
When it comes to the mechanics of the partnerships, customers will now be able to apply digitally for mortgages and import bank or salary information by showing identification. The joint effort will reduce the time it takes to find documents, and after the application is submitted, customers will have one portal to track status, complete other tasks and review documentation.
These gains were cooled slightly by the fact that Hippo Insurance fell 24.2% in the past week. As has been reported, last month the company filed a certificate of amendment to its certificate of incorporation with the Secretary of State of the State of Delaware to effect the previously announced 1-for-25 reverse stock split of the company’s common stock.
In addition, MoneyLion lost more than 9% on news that it, along with 38 of its subsidiaries, is being sued by the Consumer Finance Protection Bureau (CFPB). The CFPB alleged that the company and its entities charged illegal fees to service members and dependents, and said MoneyLion violated the Military Lending Act by charging more than the legal 36% interest rate cap on loans to service members and dependents.
Robinhood fell by about 2%. In news detailed here, the brokerage and investment platform recently released a beta version of its Web3 wallet called Robinhood Wallet that will enable users to control their cryptocurrency, trade and exchange crypto without network fees, and access the decentralized web.
During the beta test, according to reports, participants will be able to use the standalone app to fund their wallet with USDC, trade and exchange crypto, earn crypto rewards, store and track their blockchain portfolio, and connect to decentralized apps. When the app is released to the general public, it will also support display of non-fungible tokens (NFTs) and connection to NFT marketplaces, the company said.
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.
