FinTech IPO Index Gives Up 3.5% as Platforms Take a Dive

FinTech names gained no bump from the first glimmers of earnings season, and there are new announcements from the buy now, pay later space.

The overall Index slipped 3.5%, led by platforms, which by and large, slipped double digit percentage points. DeFi Development slid 25.9%, followed by Upstart, which gave up 13.7%.

In Upstart related news, Peak Credit Union, which serves 250,000 members across Oregon and Washington, partnered with Upstart to offer personal loans to more consumers. Peak started lending as a partner on the Upstart Referral Network for personal loans in November 2022. As part of the Upstart Referral Network, qualified personal loan applicants on Upstart.com who meet Peak’s credit policies receive tailored offers as they seamlessly transition into a Peak-branded experience to complete the online application and closing process.

SoFi Sees Strong Credit Performance

SoFi reported its most recent quarterly results this past week. As discussed here, CEO Anthony Noto said the company’s real-time view across checking, investing and lending shows “very strong” credit performance and day-to-day activity.

“The first message is our credit performing very well … not just the performance of credit, but the spending that we see in SoFi Money [digital banking], the engagement that we see in SoFi Invest and general behavior overall,” Noto told analysts.

Management commentary revealed that personal‑loan borrowers carry a weighted‑average FICO of 745; student‑loan borrowers average a 773. The personal‑loan annualized charge‑off rate fell to 2.60% from 2.83% last quarter, with 90‑day delinquencies holding at 43 basis points. Student‑loan charge‑offs eased to 0.69%, with 90‑day delinquencies at 14 basis points. The Loan Platform Business originated $3.4 billion for third parties in Q3, and SoFi executed a $466 million securitization backed by those loans. Shares of SoFi gathered 3.4%.

BILL introduced a suite of AI agents designed to automate small business financial workflows and enable what it calls “touchless transactions” for its 5 million SMB customers. The agents leverage generative AI to approve invoices, reconcile payments, and manage cash flow with minimal manual intervention. PYMNTS reported that the launch positions BILL to deepen its role in automating back-office finance for SMBs and aligns with broader AI-driven automation trends across the payments ecosystem. The new agents include the BILL W-9 Agent, which the company says eliminates more than 80% of manual steps involved in collecting W-9s by autonomously requesting and pre-validating W-9s from vendors.  BILL shares declined 3.5%.

Lufax announced a leadership transition as Chief Risk Officer Yong Zeng stepped down and was succeeded by Deputy CRO Weidong Liu, part of a broader risk management overhaul. PYMNTS noted the move comes as the Shanghai-based digital finance platform adjusts to China’s tightening oversight of consumer lending and refocuses on asset quality. The company said the succession ensures operational continuity.  The stock lost 12.8% of its value.

BNPL Names Make Headlines, Too

Affirm expanded its partnership with Worldpay for Platforms to embed its pay-over-time options directly within merchant payment systems. PYMNTS reported that the integration allows small and midsize merchants using Worldpay’s platform to offer Affirm’s installment loans without additional technical integration, broadening Affirm’s merchant reach and driving adoption of embedded lending. The collaboration underscores how BNPL providers and processors are working together to simplify digital payment acceptance.  Affirm’s stock lost about 8.8%.

Elsewhere in the BNPL space, Klarna has unveiled a new global subscription membership program that includes two tiers offering cash back, travel perks, lifestyle rewards and other premium benefits. The new plans will be available to Klarna customers within weeks, with the monthly value of the perks and benefits and the availability of subscription offerings varying by market, the company said. PYMNTS reported that the Premium tier will cost 17.99 euros (about $21) per month and will include subscriptions to several publications, 0.5% cash back everywhere when using Klarna balance, global travel insurance and a metal card in silver or black. The Max tier will cost 44.99 euros (about $52) per month and will include subscriptions, 1% cash back when using Klarna balance. Klarna’s stock lost nearly 1% through the past five trading sessions.

ClearBank said this week that it had signed a strategic framework agreement with a subsidiary of Circle Internet Group, Inc to collaborate in the European market.

Initially, this collaboration will focus on expanding access to USDC and EURC — Circle’s MiCA-compliant, fully reserved stablecoins — through Circle Mint in Europe, Clearbank said in its release. “ClearBank also plans to become one of the first European banks to join Circle Payments Network (CPN), enabling clients to move value globally with internet-speed and blockchain transparency,” the announcement noted. ClearBank and Circle are also exploring additional strategic use cases, including stablecoin-based treasury solutions and future tokenized asset settlement integrations, Clearbank said.  Circle’s stock gave up 5.5%.