FinTech IPO index falls 3.3% on macro concerns

The investment world is analyzing the amount of revenue that continues to come from banks, from the payment networks.

And so far, while earnings announcements have yet to pick up within our coverage, via the FinTech IPO Index, we can assume the names are moving in sympathy with what their financial services brethren are saying.

Inflation is of course picking up. Interest rates are rising in an attempt to blunt at least some of that inflationary effect. Consumer spending is still high, but there is still a specter that demand on all trade routes may (perhaps must?) slow.

As noted in this space earlier this week, the FinTech space is in the midst of a major freeze, losing half a trillion in valuation as the cumulative value of the shares of newly listed firms in the sector has fallen $156 billion so far this year.

To that end, and as a further illustration of the choppy trading, the index fell 3.3% for the week, and is now 40.5% lower for the year.

It should be noted that the companies we cover are equally weighted in the index, meaning that companies with even the smallest capitalizations have the same impact on their much larger peers. And in some cases, the more outsized movements in our universe weren’t necessarily accompanied by company-specific news.

Blend dropped 20% for the week. Opendoor Technologies was down about 16%, and it may be the case that concerns over a housing slowdown are affecting the stock. The upstart lost almost 14%.

OneConnect was 13% lower. Last week, the company said it launched an all-in-one digital banking solution, OneCosmo in partnership with Brazilian FinTech Pismo. The solution, the companies said this week, offers digital identity verification, core banking and other services.

These losses were more than enough to offset the 11% gain seen with FinWise Bank. The company released its latest quarterly results this week. The company said loan originations were $2.1 billion, compared with $2.5 billion for the quarter ended March 31, 2022 and $1.4 billion in the prior period. Net interest income was $12.8 million, compared to $13.0 million for the quarter ended March 31, 2022 and $10.8 million in the prior period.

Katapult advanced about 9%, following news that it has hired Reid Bork as its new chief revenue officer. He had previously been vice president and general manager at Sezzle.

Elsewhere, Brazilian brokerage XP said it expects to open its digital asset trading platform to clients by mid-August, initially offering bitcoin and ether, but with plans to expand by the end of this year, as reported by Yahoo Finance .

And separately, Enfusion announced the launch of Enfusion Express, a lightweight yet institutional-grade SaaS order and execution management system tailored specifically for the needs of smaller fund managers, typically with less than $100 million in AUM. Shares fell almost 2% for the week.