FinTech IPO Index 3% Off Conflicting Signals

The FinTech IPO index fell 3.2% towards the end of the week and is down 10.2% towards the last days of October. The gap is deep if the Index is ever to reach positive territory – the Index is down more than 48% to date.

Confirm slides ahead on holiday spending withdrawal

Pick your day, and of course things will seem brighter or darker – and we’re just getting started.

Because none of the names in our nearly four-dozen-member pantheon have weighed their own measures on revenue, revenue (if any), or takeaways on consumer health.

But if recent reports are any indication, there could be some stormy seas ahead as earnings reports trickle in — then come in waves.

Of course, the most important thing for investors will be the state of spending, and so far the picture is uneven. On the one hand, the banks that have reported income so far have said that debit and credit card spending has been robust (although, perhaps unsurprisingly, they have also increased their loan loss reserves).

In many cases, as PYMNTS has reported, the big banks are the ones that have seen some resilience in the last few months of 2022, where pent-up demand is still supported by some untapped purchasing power – call it dry kindling – on credit cards.

On the other hand, as reported this week, high street companies have become a little glum about the near-term outlook. They’ve kind of taken the reins in hiring, which in turn indicates a reluctance to expand in the face of uncertain demand.

There is indeed some weakness in retail spending, which we find may not grow well for at least some of the FinTechs in our group, which rely on those end markets for topline torque.

KE Holdings lost about 7% as of late last week, as there seems to be some macro concern about China’s economic performance, where the government had delayed the release of GDP data (and that statistic has slowed to about 3%). per year, significantly lower than previous average to high single digit rates).

Hippo Insurance was down about 17% over the past five sessions. Home insurance partly depends on the buying activity of a home. Mortgage rates have risen for decades, leading to a slump in transactions.

The company said this week that Kiraboshi Bank, a regional bank based in Tokyo, Japan, is live on the nCino Bank operating system. The integration was successfully led by IBM Japan, according to the announcement.

Robinhood was slightly lower than late last week in the wake of the news, according to CoinDesk, that it has released a beta version of Web3 Wallet to 10,000 users.

Enfusion is up just over 10% since late last week. Enfusion said this week that Apex Group, a global financial services company, has chosen the Enfusion platform to enhance the delivery of middle-office services to its global fund management client base.

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See more in: Connected Economy, Consumer Spending, Economics, Enfusion, Featured News, FinTech, FinTech IPO Index, Hippo Insurance, Vacations, Inflation, IPOs, KE Holdings, Main Street, nCino, News, Paya, Robinhood, SMB, TechREG

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