Fintech
FinTech IPO Index Soars 3.5% on Partnership Announcements
Earnings season is about to kick off on Friday, but the FinTech IPO Index’s 3.4% rally over the past five sessions has come as several new partnerships have been announced.
Emerging leads the momentum
Upstart shares gained more than 16% over the course of the week. Upstart has announced that Texans Credit Union, one of the largest credit unions in Texas with more than 123,000 members and $2.2 billion in assets, has entered into an equal partnership with Upstart to offer personal loans to consumers.
Texans Credit Union began lending as a partner on the Upstart Referral Network in August 2023. With the Upstart Referral Network, qualified personal loan applicants on Upstart.com who meet Texans Credit Union’s credit policies will receive personalized offers as they seamlessly transition to a Texans Credit Union-branded experience to complete the online application and closing process, the companies said.
Futu Holdings shares were unchanged this week.
The company stated this in a press release that its wholly-owned subsidiary, Futu Securities International, has upgraded its Type 1 license with the Hong Kong Securities and Futures Commission (SFC). The company said this upgrade will enable Futu Securities to provide virtual asset trading services to retail and professional investors in Hong Kong.
Open Lending shares rose 6.5%.
The company stated in news related to its new partnership with Securian Financial Group, Open Lending will provide insurance coverage through its flagship Lenders Protection program “as market volatility impacts auto loan portfolios.”
The release noted that Lenders Protection prices and structures auto loans based on each borrower’s unique financial profile, using alternative data and AI-based risk analytics. This allows lenders to safely offer lending opportunities to near-prime and non-prime borrowers.
SoFi’s Galileo Enables Bank Transfers for FinTechs
Galileo Financial Technologies by SoFi has begun offering wire transfer capabilities to FinTechs, PYMNTS reported this week. The new capability provides FinTechs with another option for fast, secure movement of money. Through its wire transfer API, Galileo connects FinTechs working with Community Federal Savings Bank to Fedwire, which processed more than 193 million wire transfers last year.
With wire transfer capabilities, Galileo said, recipients can receive their funds the same day they are sent. Each transaction goes through “rigorous validation processes” to ensure the safety and integrity of the money transferred.
Marqeta shares lost 2.4%.
Marqeta said earlier this month that it is working with Swiss4 to provide personalized, real-time digital payment services for the latter’s customers. This is part of Swiss4’s recently launched application, which combines financial services and high-end lifestyle management, the first of its kind in Switzerland.
With Marqeta’s platform, Swiss4 can quickly design and introduce new payment features, continuously improving the end-user experience. Swiss4 was founded in 2020 and is one of the first companies in Switzerland to be granted a fintech license by the Swiss Financial Market Supervisory Authority (FINMA).
Blend Labs said which has entered into a new partnership with Andrews Federal Credit Union, Maryland’s fourth-largest credit union with $2.6 billion in assets, to simplify the savings account opening experience for its members. CU will leverage Blend’s savings account solution for what it calls a seamless omnichannel application experience, counter-offers and multiple financing options that drive account conversion…as well as Banker Workspace tools that help bankers focus on deepening member relationships.”
Blend Labs shares gained 1.4%.
Janover announced that Its advanced AI Commercial Loan Agent has already facilitated approximately $10 million in loans funded through the Janover platform in 2024. The AI Loan Advisor operates seamlessly across multiple communication channels, handling various inquiries, lead generation, and customer support for the company. It engages with website visitors via an embedded live chat widget, converses on the phone, sends and receives text messages, and communicates via email.
Janover shares rose 6.8%.
Sezzle shares lost 8.9%. The company said had entered into a new partnership with Heritage Grocers Group, a specialty retailer of ethnic food products. This partnership will expand Sezzle’s Heritage Grocers Group portfolio of businesses, which includes 58 stores under the Cardenas Markets brand, 29 stores under the El Rancho Supermercado brand, 21 stores under the Tony’s Fresh Market brand and seven stores under the Los Altos Ranch Market brand.
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