FinTech IPO index of 3% on conflicting signals
The FinTech IPO index was down 3.2% towards the end of the week and is down 10.2% towards the last days of October. The hole is deep if the index is ever to make it into positive territory – the index is down more than 48% so far this year.
Choose your day, and of course things seem brighter or darker – and we’re just getting started.
Because none of the names in our nearly four-dozen-strong pantheon have weighed in with their own measures of income, revenue (where applicable) or takeaways on the health of the consumer.
But if recent reports are any indication, there could be some stormy seas ahead as earnings reports start to roll in — and then come in waves.
Top of investors’ minds, of course, will be the state of spending, and the picture so far is mixed. On the one hand, the banks that have reported earnings so far have said that spending across debit and credit cards has been robust (although, perhaps to no one’s surprise, they have also increased their loss reserves).
In many cases, as PYMNTS has reported, the big banks are the ones that have seen some resilience heading into the final months of 2022, with pent-up demand still supported by the fact that there is still some untapped purchasing power – call it dry ignition — on a credit card.
On the other hand, as reported this week, high street businesses have turned slightly gloomier on the short-term outlook. They have pulled back a bit on hiring, again suggesting a reluctance to expand in the face of uncertain demand.
Indeed, there has been some weakness in retail spending, which we sense may not bode well for at least some of the FinTechs in our group, who rely on these end markets for top-line momentum.
KE Holdings was down by approx. 7% from late last week as there appear to be some macro concerns about China’s developing economic performance, where the government had delayed the release of GDP data (and this metric has slowed to around 3). % annually, markedly down from previous mid- to high single-digit percentages).
Hippo Insurance was about 17% lower over the past five sessions. Home insurance is partly dependent on home buying activity. Mortgage rates have risen to multi-decade highs, which has led to a pullback 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. According to the announcement, the integration was successfully led by IBM Japan.
Robinhood dipped slightly from late last week following news, per CoinDesk, that it has released a beta version of its Web3 Wallet to 10,000 users.
Infusion was up a little more than 10% since the end of last week. Enfusion said this week that Apex Group, a global financial services provider, has selected the Enfusion platform to enhance the delivery of interoffice services to its global fund management client base.
