Fintech
FinTech IPO Index Falls as Earnings Season Ends
The first week of June brought little movement for the FinTech IPO Index overall, as the group fell 0.6% and earnings continued to rise, essentially capping off a busy few weeks of quarterly reporting.
Huize rose 30%, continuing to ride a post-earnings rally from late last month, where the company reported that in the March quarter, first-year premiums more than doubled sequentially and increased 29.7% year-over-year to RMB857.2 million ($118.3 million).
The cost-to-income ratio decreased by 10 percentage points to 26.2% compared to the same period in 2023.
The overall number of insurance customers served rose to 9.6 million at the end of March.
nCino shares lost 0.8%. nCino reported last week demand for its single-platform cloud banking solution and artificial intelligence (AI) capabilities led to record gross sales in the latest quarter.
The company reported that its total revenue of $128.1 million for the first quarter of fiscal 2025, ended April 30, increased 13% from the same quarter a year earlier.
The stabilization of interest rates after nearly two years of instability also contributed to the company’s growth, as it improved the tone of conversations with customers and normalized purchasing behavior, CEO Pierre Naudé he said during the company’s quarterly earnings call.
Alkami shares fell 3%. The company said this in a publication this week that the number of new contracts signed by financial institutions for Alkami’s Data & Marketing Solutions increased overall by 76.5% for 2022 and 2023 combined compared to contract signings for the previous two-year period (2020 and 2021 combined).
“This momentum comes at a time when regional and community banks and credit unions are facing increasing pressure to provide a world-class digital banking experience to account holders,” the company said.
Marqeta adds momentum to banking apps
Marqueta shares have been lower by 0.7% over the past five sessions. The company said yes enlarged its partnership with French payments company Lydia.
Under the terms of the extended collaboration, Marqeta will power Sumeria, Lydia’s European digital banking super app. This app has introduced new features, including a paid checking account, and Lydia plans to expand the app across Europe with the help of Marqeta.
Lydia launched Sumeria last month, saying it would invest more than 100 million euros ($108.8 million) and hire 400 people in three years.
Catapult shares were down 2.7%. In his way product announcementthe company announced the debut of Katapult Layoff Insurance, powered by Harmonic.
This new offering provides a cash benefit of up to $2,000 for customers facing involuntary job loss. By paying a monthly payment, Katapult customers can secure this financial buffer, improving their ability to deal with unexpected financial difficulties, according to the release.
Customers can access Katapult redundancy insurance via the Katapult mobile app and website. Enrollment is immediate and policyholders become eligible to claim compensation after a 90-day waiting period. Consumers can receive the $2,000 payment via check or apply the benefit directly to a Katapult lease. The payment is in addition to government income or settlement assistance.
Sezzle increased by 15%. The BNPL company has launched a Association with the Californian one Vallarta Supermarkets.
The announcement cites a PYMNTS Intelligence survey showing that despite concerns that using credit for groceries could indicate financial strain, one-third of U.S. consumers used a traditional credit card for their latest grocery purchase food, a figure that has remained stable since 2021. also saw a surge on the news that its shares will join the Russell 3000 index.
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