The fintech IPO index lost 2.6% as profits rolled in.
The “buy now, pay later” (BNPL) space arguably dominated headlines as the Consumer Financial Protection Bureau (CFPB) stepped in with new oversight of vendors.
The CFPB intervenes
As PYMNTS reported On Wednesday (May 22), the CFPB ruled that BNPL providers are credit card providers and must provide certain essential legal protections and rights offered by conventional credit cards. That includes, for example, the consumer’s right to dispute charges and demand a refund from the lender, the agency said.
The interpretive rule released Wednesday by the CFPB says BNPL lenders must investigate consumer-initiated disputes, suspend payment requirements during the investigation, credit refunds to consumers’ accounts when they return products or cancel services, and provide periodic billing statements like those traditionally provided by conventional credit card accounts.
Actions in Affirm has lost 5.2% over the past five sessions. Shares of Sezzle fell by 0.7%.
XP’s financial results push index down
XP shares fell 15.8%. The company results reported last week According to the report, client assets totaled R$1.1 trillion ($213.82 billion) in the first quarter of 2024, up 20% year-on-year and 2% year-on-year. The number of active clients increased 16% year-on-year and 1% year-on-year in the fourth quarter of 2024, reaching 4.6 million in the most recent period. The total number of advisors stood at 17,700, up 16% year-on-year.
The average daily number of retail transactions was 2.2 million in the most recent quarter, down 9% from last year. The total number of active cards was 1.2 million in the first quarter, up 49% from last year.
Robin HoodThe company’s latest news on rates tied to its brokerage products sent shares up 7.5%.
As PYMNTS reported Robinhood has introduced new lower margin rates that it says are the lowest among major brokers. The rates vary based on a customer’s total margin balance and range from 5.7% to 6.75%, the online brokerage said this week. Six rates are offered in this tiered margin structure, ranging from 5.7% on margin balances of $50 million or more to 6.75% on margin balances up to $50,000.
Flying thread said earlier this month that he extended availability of its third-party billing solution, which simplifies the payment experience for third-party sponsors who pay a student’s tuition and fees. The company said institutions can reduce administrative burden, facilitate reconciliation and increase revenue by creating, issuing and tracking invoices to engage sponsors and encourage timely payments.
Flywire shares gained 5.8%.
FinWise Bank said he had launched a new strategic loan program with Plannery, a financial wellness platform that hospital systems can offer their employees to become and stay debt-free.
The FinWise loan product allows hospital systems to offer their employees ways to consolidate and reduce interest rates on credit cards and personal loans. Tying transactions to payroll, the companies say, helps reduce missed payments and late fees and accelerates employees’ path to financial stability. Plannery and FinWise will offer this innovative product through sponsorships from companies such as hospitals and strategic partners. The product will be an unsecured, fixed-rate loan available nationwide.
FinWise shares fell 0.8%.
SoFi announced the placement of a $350 million personal loan securitization exclusively with funds and accounts managed by PGIM Fixed Income, a Prudential Financial SoFi said in the statement that to date it has sold more than $15 billion and securitized more than $14.5 billion of personal loan collateral. SoFi shares fell 4.1%.
