FinTech IPO Index Gains 4.5% as Fed Cuts Cheer Investors

Stocks had a historic week, as the Dow hit new highs and the Fed made a bit of history of its own — and the FinTech IPO Index soared 4.5%, buoyed by the platforms.

The conventional wisdom, in the wake of a 0.5% cut by the central bank to the Fed Funds rate, is that the cost of debt gets cheaper, and so consumers and businesses will be more inclined to, say, buy homes or reconfigure their finances or put money to work beyond the confines of keeping it in the bank.   

And through the past five sessions a slew of new product announcements and partnerships sent most FinTech IPO components sharply higher.

Janover’s shares soared 36% after it said it had launched Groundbreaker’s Janover Engage; a marketplace connecting real estate syndicators with investors. The platform includes access to more than 40,000 verified investors that have invested more than $1 billion. The investments are only available to syndicators raising under Reg D 506(c) and to accredited investors.

Affirm’s shares rallied 10%.

As had been reported, a new integration lets Apple Pay users in the U.S. pay for purchases via iPhone and iPad over time using Affirm, breaking down their payments into biweekly or monthly installments.

To use the service, consumers with iOS 18 and iPadOS 18 or later can pick “Other Cards & Pay Later Options” when checking out with their Apple device before undertaking an eligibility check that will not affect their credit score.

Users who are approved will see customized payment plans and can select the one that works best for them.

Open Lending shares were also up 10%.

Earlier this month, the firm said Chuck Jehl has been appointed to serve as chief executive officer and as a member of the board of directors, effective immediately.

Jehl will continue to serve as Open Lending’s interim chief financial officer while the company conducts a search for his replacement in the CFO role. Jehl has served as the company’s interim chief executive officer and chief operating officer since March and as the CFO and treasurer since August 2020.

Upstart shares followed close behind with a 9% gain. Upstart announced that it will offer $300 million of convertible senior notes due 2029.

MoneyLion’s stock was basically flat. The platform said this past week that it has struck a partnership with TransUnion. In an announcement the companies said the joint efforts are focused on crafting personalized offers within consumer finance, improving their experience with MoneyLion while also extending the reach of TransUnion’s credit solutions. 

Financial institutions working with MoneyLion will benefit from the collaboration via more efficient decision-making and segmentation capabilities using TransUnion’s comprehensive credit data, per the release. They will also be able to attract customers and present them with the most suitable products at the right moment in their financial journey, the companies said.

nCino shares gathered 2.4%. In a Thursday announcement, Participate, a loan participation and syndication automation platform, said it was working with nCino to digitize and automate the entire loan participation process.

The integration will give financial institutions (FIs) using the nCino Commercial Banking Solution access to a digital loan marketplace that automatically transfers new or existing loans, streamlines back-office workflow within the participations portfolio, and manages post-sale activities from a single application.

The turnkey service includes onboarding existing loan participations, training and supporting all buyers and optional integration to the core system, according to this week’s announcement.