Traditional IPOs and bank listings dominate


Quotes in banking – in particular, tech banking – grabbed the headlines last week, and it appears that traditional Initial Public Offerings (IPOs) have dominated in recent days.

As tracked by PYMNTS, the bank-focused listings announced to date stand at 33.

Within this group, the consumer banking platform Blend Labs has submitted an offer in the United States. The company is looking to raise $ 100 million, according to reports, although the figure is generally known as the “placeholder value” for such deposits.

Digging through the SEC file itself, we see that the company estimates that it processes more than $ 5 billion in daily loan volumes for financial services across a range of mortgages, lines of credit and auto loans.

“While we currently offer products for personal banking, we plan to expand our modular software platform over time to add support for commercial banking products. In 2020, our software platform helped financial services companies process nearly $ 1.4 trillion in loan applications, ”the file notes. Revenue increased 90% year-over-year in 2020, reaching $ 96 million. And in a nod to the competitive environment, the company said on the record that “48% of banks and 42% of credit unions have partnered with FinTech startups in the past three years to respond to questions. specific technological needs “.

Insurance platforms too

Separately, Ryan Specialty Group, which operates as a company focused on the wholesale specialty insurance brokerage business, has filed an IPO application for a similar amount of $ 100 million.

In this company’s file, the company mentions its Connector platform, which “is a digital marketplace through which our retail customers can receive quotes and link policies online. It can produce multiple binding quotes from high quality E&S carriers in multiple risk classes within minutes. The company added that “in cases where certain risks do not meet The Connector’s highly automated underwriting criteria, the retail insurance broker is automatically connected to our producers and underwriters for more traditional investment methods.” Organic revenue growth rates in the most recent quarter were 18.4% to $ 311.5 million.

This does not mean that the PSPC activity was totally absent. Consider FinTech Acquisition Corp. VI, which announced the price of its IPO for $ 220 million last week and began trading this week.

Overall, among companies that went public last week, tech names dominated, as companies like Confluent, which focuses on data analytics, jumped 25% when it debuted on the Nasdaq this week. The company has raised more than $ 800 million, CNBC reported, with revenue rising 58% year-over-year to $ 236.8 million.

And Doximity, as reported, saw its own IPO skyrocket by over 100% on the first day of trading. The company’s app helps physicians connect to share research and other information. The company has 1.8 million professionals here in the United States who use its site, as reported by CNBC. In terms of revenue, revenue increased 77% to $ 206.9 million. In an interview with CNBC, Jeff Tangney, co-founder and CEO of Doximity, said, “Telehealth is 2% of revenue today, and it’s such a green field. We haven’t been price-aggressive yet.

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About the study: The AI ​​In Focus: The Bank Technology Roadmap is a research and interview report examining how banks are using artificial intelligence and other advanced IT systems to improve credit risk management and other aspects of their operations. The Playbook is based on a survey of 100 banking executives and is part of a larger series assessing the potential of AI in finance, healthcare and others.

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