Partnerships and New Tech Announcements Dominate as FinTech IPO Slips 0.9%

Earnings season has trailed off — and now come the headlines focused on technology, partnerships and entry into new markets as FinTechs continue to try and disrupt everything from lending to embedded payments.

To that end, the FinTech IPO Index was down 0.9% in a holiday-shortened trading week.

BILL shares were up 4.4%. 

The company said this week that it had 

debuted the BILL Financial Operations Platform for SMBs. The platform, according to the release, integrates solutions across accounts payable (AP), accounts receivable (AR), and spend and expense management. In terms of functionality, the platform uses data capture and AI to streamline approvals and automates AR through invoicing, estimates, payment tracking, and collection. Small to midsized businesses can get paid faster directly to a bank account via ACH and debit or credit cards.

Shares of nCino surged 9.9%. The company said this past week that it had enhanced its Small Business Banking Solution. The updates allow for relevant data to be captured as a part of the loan origination workflow, the company said, ranging across a financial institution’s portfolio and subsequently exported for Dodd-Frank 1071 compliance.

Paysafe stock gathered 3%.

As reported here, Paysafe and Eightcap have announced a strengthened partnership to offer an innovative Embedded Trading Wallet solution. The companies, as per the announcement, will provide a joint embedded finance solution for Eightcap and Paysafe’s shared partners and merchants in the European Union. The partnership between Eightcap and Paysafe began in 2016. 

And under the initial pact, Paysafe began offering a wide range of payment options for Eightcap global traders, including digital wallets like Skrill and NETELLER and various local payment methods. The newly introduced Embedded Trading Wallet utilizes Paysafe’s digital wallet infrastructure and Eightcap’s trading technology.

Restaurant point-of-sale provider Toast shares lost more than 1.3% in a week when the company announced a new CEO at the helm. Aman Narang, who co-founded the firm in 2011 and has served as its chief operating officer since 2021, will become CEO as 2024 dawns. Narang takes over from CEO Chris Comparato, who has held that position since 2015. Both he and Narang will remain on the Toast board.

Nubank Targets Personal Loans in Mexico

Nubank, which saw its shares slip 0.6%. disclosed that it will begin offering personal loans to customers in Mexico. The initial rollout will be to a Nubank employee group — for testing — and then will move to a general release. The company has noted that, per Mexico’s 2021 National Financial Inclusion Survey (ENIF), only 33% of consumers in Mexico who apply for loans are successful when they seek to get those loans from a traditional financial institution (FI). Per the company’s release, Mexican consumers will be able to access loans through the Nu app, with applications able to be completed in under five minutes.

The release stated that “customers will receive a maximum offer and can adjust the amount and payment schedule to meet their needs, with a complete simulation. Additionally, users will be able to make early payments at any time, without additional fees or penalties of any kind.”              

Also this week. Upstart announced a partnership with Naveo Credit Union to provide personal loans to more people. Naveo Credit Union became an Upstart Referral Network lending partner in February 2023. With the Upstart Referral Network, qualified personal loan applicants on who meet Naveo’s credit policies will receive tailored offers, as noted in the joint release. Upstart shares were up 1.9% in the week.