FinTech IPO Index Loses 5.8% as Platforms Plunge, Offset Spate of Partnership Announcements 

Partnerships were the prime source of headlines this past week.

But for the FinTech IPO Index, which gave up 5.8% through the past five sessions, the downside was led by platforms, many of which plunged double digits — not on company specific news, but on the specter that interest rates are going to be higher … for longer.

The Platforms Retreat

The Federal Reserve, of course, paused interest rate hikes, at least this time around, but the indications are that there will be another rate hike in the cards this year. The platforms — where higher rates pinch lending activity — have taken a hit in the meantime. Opendoor Technologies sank 25%, OneConnect lost 12.5%.

Upstart stock lost 10%. In an announcement this week, Idaho Central Credit Union announced a partnership with Upstart to broaden its personal lending efforts. The announcement builds upon an existing relationship where Idaho Central Credit Union became an Upstart Referral Network lending partner in July 2022. With the Upstart Referral Network, qualified personal loan applicants on who meet Idaho Central’s credit policies will receive tailored offers.

Robinhood gave up 6.9%. 

As profiled in The Wall Street Journal, and as spotlighted here, as the “Dumb Money” movie looms, Robinhood has turned itself into a “financial supermarket” that features retirement accounts and 24-hour trading. The company has been grappling with volatility in its subscriber momentum, where just last week the firm said its monthly active users for August came to 10.6 million. That’s down from 11 million at the end of July. Net cumulative funded accounts had remained flat, 22.2 million for July and August and up just 1% year over year.

nCino shares were flat on the week.

The company said this week that Bendigo and Adelaide Bank, an Australian FI, has selected nCino to enhance and simplify its business banking operations. As noted in the release, this decision was part of the bank’s broader strategy to reduce complexity in its operations, deliver the best experience for its customers and employees, and accelerate growth.

In other partnership-related news, Payoneer and Airbnb announced enhancements to their joint efforts. As reported, Payoneer is enabling Airbnb hosts in multiple countries to get paid in local currencies. The two companies have also agreed to extend their collaboration for another three years.

Payoneer’s platform and network of bank partners “not only [allow] Airbnb hosts in such locations to get paid locally but also to access and spend funds in a variety of ways, among other benefits.”

Payoneer shares lost 0.5%.

Nuvei announced that it has become “one of the first payments services providers to integrate” iDEAL, an enhanced solution for the leading alternative payment method in the Netherlands. The FinTech said that the integration will enable Dutch eCommerce merchants to offer a seamless payment experience as bank selection pages are directly integrated into the payment method. Nuvei shares were down 11.3% through the week.