Update: As Markets Enter Correction Territory, FinTech IPO Index Plunges 4.8%

Markets were awash in a sea of red this past week, and the broader gauges, such as the Dow and the S&P 500 Stock Index, have touched correction territory, down at least 10% from their peaks.

The FinTech IPO Index fared no better through the past five days, sinking 4.8%, and there were few positive returns to be seen among the downdraft.

Macro concerns — particularly on tariffs and the as-yet-untold impact of a trade war — ruled the week. Financial sector names were among the hardest hit, particularly those with a presence in crypto markets, and Robinhood’s shares were more than 19.5% lower.

nCino shares slipped 8.6%.

The company said this past week that Československá obchodní banka, which operates as a subsidiary of KBC Bank NV, has chosen the nCino Platform to digitize and streamline its Commercial and SME Lending operations. The pact broadens nCino’s reach into more than 10 European countries.

Payments-related names were lower, too, as investors weighed recent inflation data and cautious comments were issued on consumer spending from the likes of Kohl’s and the airlines.

BNPL Names Slip

The buy now, pay later (BNPL) names we track as part of the FinTech IPO Index were no exception, though news surrounding those companies were tied to partnerships and new features. As reported by PYMNTS, Affirm has teamed with resale marketplace StockX. Through the joint efforts, eligible StockX shoppers in the U.S. can access Affirm’s payment plans when purchasing products from brands such as Adidas, Supreme and Gucci.

Affirm shares gave up 10.9%.

Also within the BNPL space, Sezzle shares sank 3.8%, in a week that saw the company announce that it had added improved shopping features to its platform. Among the new offerings is Sezzle On-Demand, created in response to what the company said was a strong demand for a non-subscription version of its subscription product. This new product lets shoppers create a single-use virtual card for a set amount, allowing them to split payments. Other features include personalized recommendations and instant price drop alerts.

Among the platform names in our pantheon, Marqeta said that it has become the issuer processor for Spendesk Financial Services (SFS) in Europe. SFS will integrate Marqeta’s card processing services into its core banking platform, giving customers both physical and virtual cards. The announcement also detailed that Spendesk’s B2B spend management with controls that let businesses screen and approve expenses in real time. Marqeta shares dipped 1.4%.

In SoFi-related news, where the stock lost 8.5% on the week, the company has finalized an agreement with Blue Owl Capital worth at least $5 billion. SoFi will expand its loan platform business, which refers pre-qualified borrowers to loan origination partners and originates loans on behalf of third parties as part of a two-year deal. The news comes on top of an announcement earlier this year that it had closed a $697.6 million secularization of loan platform business volume.

Hippo Insurance reported fourth-quarter results that detailed revenues surging 58% to $102 million, and insurance as a service growth was 22%. The company’s gross loss ratios improved year on year to 50%; the company’s stock lost 10.9%.

Paymentus was one of the few firms to wind up in the green this past week, as shares gathered 12.5%. Company materials detailed that in the fourth quarter, consolidated revenues were 41.9% higher, to $257.9 million. Transactions grew by 33% as management pointed to onboarding of larger clients, and guidance for the current quarter implies top-line growth of around 33% at the midpoint.