The FinTech IPO index falls 3% when the income season begins

For the FinTech IPO names now comes the true test.

Earnings season.

On Wednesday, JPMorgan signaled that the United States is still in good shape, in terms of credit and propensity to use. But macro headwinds threaten, which has encouraged the banking giant to increase its reserves.

And it can be a read for the financial sector in general, and by extension our FinTech IPO tracks, because these names depend on some of the same trends. Consumer spending, of course, drives transaction volumes across platforms and apps.

Despite the positive comment on the conversation, the management of the JPM earnings discussion said that the company had taken $ 428 million in extra loan loss reserves (which is now $ 1.1 billion), pending volatility in the middle of inflation and at least some pressure which stems from inflation. CEO Jamie Dimon said in his own comment that the global economy is likely to see an impact on global liquidity from quantitative easing and geopolitical events including the war in Ukraine.

The FinTech group, which is tracked by PYMNTS, fell 3% a week, with a performance so far this year with a dismal decline of almost 43%.

Putting the last five sessions in perspective, most of the names declined – yet the descent was a bit sluggish due to the fact that Triterras increased by 41% a week.

As mentioned in this area in recent days, Triterras is collaborating with digital lower trade, groceries and marketplace platform Conektr to give micro and retailers increased access to working capital across the United Arab Emirates.

This access comes through the inventory management tool on the Conektr app. As the companies said this week, through Triterras’ Invoice Bazaar platform, small businesses in the area’s fast-moving consumer goods (FMCG) will have more access to working capital for procurement through a fully digital process with know-your-customer (KYC) requirements. More than 7,000 dealers throughout the region will be targeted through the first rollout.

Also read: Conektr, the Triterras team to give UAE SMEs more working capital

The winnings of the lonely name were followed by Flywire, which registered an increase of 7% per week. The company has said it has completed the acquisition of Cohort Go. Cohort Go operates as a provider of education payments, and the agreement will build on existing education activities to accelerate the growth of the agent focus and the team, the companies said in a joint release.

These and other positive returns throughout the week were not enough to offset the declines.

Upstart fell 24% in particular, partly driven lower by a downgrade from Goldman Sachs. Elsewhere in the week, the company said it had partnered with Midflorida Credit Union on personal loans.

OneConnect shares fell slightly more than 20%, continuing one step after the company successfully pursued a double listing in the US and on Hong Kong’s main index.

In the weeks ahead, top-line momentum and earnings – and concerns for the macro economy – will drive sentiment, and in continuation of the FinTech IPO Group’s share prices.