FinTech IPO Gains 3.7% as Upstart and Paymentus Lead Platforms Higher

Earnings season is barely a week old. While the headlines have centered on big banks, Wall Street trading and credit card spending, the deluge of quarterly reports has yet to be seen from the digital upstarts populating the FinTech IPO Index.

We’ll get there for sure. But in the meantime, in the past week, the prime movers of the FinTech IPO Index’s 3.7% surge came through the platforms, where partnerships and new products represented a broadening of the features and services offered to individuals and to businesses.

That’s not to say that all platforms rose in lockstep. Futu shares sank 16.3%.

The company said this week that it had launched its ETF-based intelligent robo-advisory services, a new feature designed to deliver personalized investment solutions tailored to clients’ risk appetites and investment preferences.

The company said it is working with BlackRock to offer Target Allocation ETF Model Portfolios powered by BlackRock strategies and insights.

Several Platforms Gain Ground

Other platforms’ surges more than tipped the balance of the index’s momentum to the upside.

As reported by PYMNTS, Paymentus — which saw its stock roar ahead by 24.3% — has introduced a tool to help insurers offer instant digital disbursements. The Paymentus Disbursements Accelerator added to the Guidewire ClaimCenter, and is designed to help insurers rapidly weave instant digital disbursement capabilities into their claims management processes.

The accelerator, the release said, lets policyholders get payouts in the way they wish, including payments to digital wallets, credit or debit cards, ACH transfers or via check.

Upstart’s stock gained 20.5%.

In an annoucement late last week, the company detailed a programmatic purchase commitment from funds managed by Blue Owl Capital. Blue Owl’s Alternative Credit strategy will purchase up to $2 billion of consumer loans on the Upstart platform over 18 months. The transaction includes an initial acquisition of a $290 million personal loan portfolio, which closed in September.

The transaction was structured and closed by Atalaya Capital Management, an alternative credit manager that focused primarily on asset-based credit investments across consumer and commercial finance, corporate and real estate assets.

Alkami and Nutmeg State Financial Credit Union launched the latest version of its digital banking services with the Alkami Digital Banking Platform. The credit union’s members, per the announcement, have access to a wide range of online and mobile banking services, ranging from account aggregation, and financial wellness education and services.

Alkami shares were up 5.7%

SoFi is expanding its loan platform with a new $2 billion investment.

The new “loan platform business agreement,” announced this week is based on funds that will be managed by affiliates of Fortress Investment Group. The agreement expands the capabilities of SoFi’s loan platform business, where the company refers prequalified borrowers to loan origination partners, while also originating loans on behalf of third parties.

The announcement follows last week’s news that SoFi had added two new credit cards to its digital financial services offering: one for consumers who prioritize earning rewards on their daily spending, the other for those focused on building or improving their credit scores.

SoFi shares added 14.4% through the past five sessions.