FinTech IPO Index Surges 3.5% on Partnership Announcements Ahead of Earnings Season

Earnings season’s about to begin – on Friday, but the FinTech IPO Index’s 3.4% rally these past five sessions came amid several new partnership announcements.

Upstart Leads the Momentum

Upstart shares gathered more than 16% through the week.  Upstart announced that  Texans Credit Union, one of the largest credit unions in Texas with more than 123,000 members and $2.2 billion in assets, has struck a par partnership with Upstart to offer personal loans to consumers.

Texans Credit Union started lending as a partner on the Upstart Referral Network in August 2023. With the Upstart Referral Network, qualified personal loan applicants on Upstart.com who meet Texans Credit Union’s credit policies will receive tailored offers as they seamlessly transition into a Texans Credit Union-branded experience to complete the online member application and closing process, the companies said.

Futu Holdings’ shares were flat this week.

The company said in a release that its wholly-owned subsidiary, Futu Securities International, has upgraded its Type 1 license with Hong Kong Securities and Futures Commission (SFC). The company said this upgrade will enable Futu Securities to provide virtual asset dealing services to retail and professional investors in Hong Kong.

Open Lending shares were 6.5% higher.

The company said in news related to its new partnership with Securian Financial Group that Open Lending will  provide insurance coverage through its flagship Lenders Protection program “as market volatility compromises automotive loan portfolios.”

The release noted that Lenders Protection prices and structures automotive loans according to each applicant’s unique financial profile, using alternative data and AI-powered risk analysis. This enables financial institutions to securely offer loan opportunities to near- and non-prime borrowers.

SoFi’s Galileo Enables Wire Transfers for FinTechs

SoFi’s Galileo Financial Technologies has begun offering wire transfer capabilities to FinTechs, PYMNTS reported this week.  The new functionality provides FinTechs with another option for fast and secure money movement. Through its wire transfer API, Galileo connects FinTechs working with Community Federal Savings Bank to Fedwire, which processed more than 193 million wire transfers last year.

With wire capabilities, Galileo said, recipients can receive their funds on the day they are sent. Each transaction undergoing “rigorous validation processes” ensures the safety and integrity of the money being transferred.

Marqeta shares lost 2.4%.

Marqeta said earlier this month that it is working with Swiss4 to provide real-time and personalized digital payment services for the latter’s customers. This is part of Swiss4’s recently launched application, which combines financial services and high-end lifestyle management, the first of its kind in Switzerland.

With Marqeta’s platform, Swiss4 can swiftly design and introduce new payment features, continually enhancing the end-user experience.   Swiss4 was founded in 2020 and is one of the first companies in Switzerland to obtain its fintech license from the Swiss Financial Market Supervisory Authority (FINMA).

Blend Labs said that it has struck a new partnership with Andrews Federal Credit Union, the 4th largest credit union in Maryland with $2.6 billion in assets, to streamline the deposit account opening experience for their members.  The CU will leverage Blend’s deposit account solution for what is billed as a “seamless, omnichannel application experience, counteroffer and multiple funding options that drive account conversion…as well as Banker Workspace tools that help bankers focus on deepening member relationships.”

Blend Labs’ shares gained 1.4%.

Janover announced that its advanced AI Commercial Loan Agent has already facilitated approximately $10 million in funded loans through the Janover platform in 2024.  The AI Loan Advisor operates seamlessly across multiple communication channels, managing various inquiries, lead generation, and customer support for the company. It engages with website visitors via an embedded live chat widget, has conversations on the phone, sends and receives SMS, and communicates via email.

Janover shares surged 6.8%.

Sezzle shares lost 8.9%.  The company said it had struck a new partnership with Heritage Grocers Group,  a specialty ethnic food retailer. This collaboration will extend Sezzle’s Heritage Grocers Group’s portfolio of companies, which includes 58 stores under the Cardenas Markets banner, 29 stores under the El Rancho Supermercado banner, 21 stores under the Tony’s Fresh Market banner, and seven stores under the Los Altos Ranch Market banner.