This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Dive Brief: Embedded finance company Green Dot said Monday it has entered into acquisition agreements with Smith Ventures and CommerceOne Financial Corp., with the private equity firm acquiring Green Dot’s nonbank fintech business, and the parent company of CommerceOne Bank acquiring its Green Dot Bank assets. Smith Ventures will buy Provo, Utah-based Green Dot’s ...

Core Insights - Tidalwave has successfully raised $22 million in a Series A funding round, bringing its total funding to $24 million [1][2] Company Overview - Tidalwave is an agentic AI-powered mortgage point-of-sale platform aimed at streamlining the mortgage process by automating outdated workflows [2] - The platform integrates directly with Fannie Mae, Freddie Mac, and verification partners such as Plaid, Argyle, and Truv, allowing lenders to access real-time income, employment, and asset verification [2] Funding Details - The Series A round was led by Permanent Capital, with participation from D.R. Horton, Inc., the largest homebuilder in the U.S., and a follow-on investment from Engineering Capital [1] Technology and Benefits - Tidalwave's technology reduces paperwork, minimizes errors, and significantly shortens processing times for mortgage applications [2] - The platform also offers AI-powered guidance, including tailored support for Spanish-speaking clients, enhancing the loan experience for borrowers [2]

Core Insights - Open Lending Corporation has appointed Abhijit "Abhi" Chaudhary to its Board of Directors as a Class I director, effective November 21, 2025, replacing Gene Yoon [1] - Mr. Chaudhary brings over 20 years of experience in product strategy for growth-oriented financial services, currently serving as Executive Vice President at Mastercard [2] - The CEO of Open Lending, Jessica Buss, expressed that Mr. Chaudhary's experience in scaling disruptive technology will provide valuable insights to the Board [3] Company Overview - Open Lending Corporation provides lending enablement and risk analytics solutions for financial institutions, focusing on loan analytics, risk-based pricing, risk modeling, and default insurance for auto lenders in the U.S. [4] - The company has been empowering financial institutions for 25 years to create profitable auto loan portfolios with reduced risk and increased rewards [4]

Core Insights - Howard Marks emphasizes the importance of balancing risk and reward in investment strategies, particularly for retail investors [1] - Oaktree Capital Management, led by Marks, is noted for its prudent investment approach, especially in late-stage markets [2] Company Summaries - **Nu Holdings**: Oaktree initiated a new position in Nu Holdings worth approximately $72 million, representing over 1.5% of its overall portfolio. The investment is significant due to Nu's international growth potential and modest valuation, despite Berkshire Hathaway's exit from its stake [3][4] - **Performance Metrics**: Nu Holdings has a forward price-to-earnings (P/E) multiple of 19.8, following strong earnings growth in Q3, making it an attractive option for investors seeking emerging market opportunities [4][7] - **Sea Limited**: Oaktree also added Sea Limited to its portfolio in Q3, which serves the Southeast Asian market. This investment provides diversification and growth potential similar to that of Nu Holdings [6][7]

Group 1: Market Overview - The AI sector is experiencing renewed interest following strong earnings from NVIDIA and Google's Gemini 3, which has eased investor concerns [1] - Despite two positive trading days, the market remains volatile, with large trading ranges indicating a lack of confidence [1][2] Group 2: Performance of Major Companies - The Magnificent 7, including Amazon (AMZN) and Meta (META), are facing challenges as 2025 approaches, with gains increasingly concentrated among AI-focused companies [2] - Bank stocks like JPMorgan Chase, Goldman Sachs, and Bank of America have shown significant gains in 2025, but underlying issues exist within the sector [3] Group 3: Fintech Sector Challenges - Fintech companies are struggling to keep pace with traditional banks, with many experiencing stock declines in the latter half of the year [4] - PayPal Holdings Inc. has seen a dramatic decline in stock value, dropping from $308 to current levels, despite maintaining a $56 billion market cap and over $32 billion in annual sales [5][7] - Toast Inc. has lost momentum after reaching a high of $45, now trading at 85 times forward earnings, raising valuation concerns [9][11] Group 4: Cryptocurrency and Related Companies - Coinbase Global Inc. is facing challenges as it closely tracks Bitcoin's price, with a more than 25% decline in the last month amid falling crypto prices [12][14] - Upstart Holdings Inc. has struggled despite its AI-driven credit assessment platform, with shares down nearly 90% since the Fed's rate hikes, and currently trading at over 170 times earnings [15][17] Group 5: E-commerce and BNPL Services - Affirm Holdings has seen its stock triple since the end of 2023, driven by the popularity of its Buy Now, Pay Later services, but recent earnings reports have shown significant misses [18][19]

LATEST: ⚡ Crypto-friendly neobank Revolut is now one of the most highly valued fintech firms after completing a private share sale that saw the company's value increase to $75 billion. https://t.co/xrWnJ8cqOm ...

Swedish fintech giant Klarna is entering the stablecoin market, marking one of its biggest strategic shifts since going public. The company said on Tuesday that it will launch a U.S. dollar-backed token called KlarnaUSD, positioning the move as a step toward faster and cheaper global payments at a time when the stablecoin sector is expanding under growing regulatory scrutiny. Klarna Joins PayPal and Stripe in Stablecoin Push With 2026 Launch of KlarnaUSD KlarnaUSD is currently in testing and is scheduled ...

Core Insights - MoonPay has received a Limited Purpose Trust charter from the New York State Department of Financial Services (NYDFS) to offer digital asset custody and over-the-counter trading, joining a select group of companies with both a BitLicense and this charter [1] - The new license enhances regulatory compliance for MoonPay's 30 million customers and nearly 500 client and partner companies, marking the firm as fully licensed in the US and regulated in the UK, EU, Canada, and Australia [2] Regulatory Compliance - Industry analysts have noted the significance of MoonPay's focus on state compliance, especially as many companies pursue national charters, highlighting the importance of robust compliance measures [3] - MoonPay has also pursued global compliance certifications in various regions, including securing an operational license for the Dutch market under the EU's Markets-in-Crypto-Assets (MiCA) regulation, effective December 2024 [3] Partnerships and Developments - MoonPay announced a partnership with Arkham Exchange to integrate fiat-to-crypto on and offramps, enhancing funding methods for the exchange's users [4] - The company also established partnerships with Zengo Pro and Haha Wallet, indicating a period of active collaboration and expansion [4]

Core Insights - Pagaya Technologies Ltd. (PGY) and Upstart Holdings, Inc. (UPST) are key players in the AI-driven lending ecosystem, with distinct operational models [1] - Pagaya operates as a B2B enabler, while Upstart functions closer to a traditional lending marketplace [1] Pagaya Technologies Ltd. (PGY) - Pagaya has a capital-light operating model, reducing exposure to credit risk and enhancing scalability [3] - The company has diversified its loan offerings beyond personal loans to include auto lending and point-of-sale financing, improving resilience across economic cycles [5] - Pagaya has established a network of over 135 institutional partners and utilizes forward flow agreements to ensure funding stability [5][7] - The company has raised over $4 billion to fund personal loans in 2025, including a recent forward flow agreement for up to $500 million in auto loans [8] - Pagaya has achieved three consecutive quarters of positive GAAP net income, marking a turnaround from previous losses [9] - The stock has gained 49.9% over the last six months, outperforming Upstart, which has lost 13.7% [16] - Pagaya's return on equity (ROE) stands at 44.45%, significantly higher than Upstart's 23.54% [19] - The Zacks Consensus Estimate indicates year-over-year revenue growth of 28.4% and 19.2% for 2025 and 2026, respectively, with earnings growth of 273.5% and 10% [20] Upstart Holdings, Inc. (UPST) - Upstart utilizes machine learning to evaluate non-traditional data points for loan approvals, allowing for a broader range of borrowers [2] - The company has expanded into auto lending and is exploring small business loans and mortgages to diversify revenue streams [12] - Upstart's AI models detected rising risk, leading to tightened loan approvals and a decrease in conversion rates from 23.9% to 20.6% [14] - The company reported its best quarter for new bank and credit union partners, adding seven partners and reaching an all-time high in available monthly funding [15] - The Zacks Consensus Estimate for Upstart indicates revenue growth of 62.8% and 15.9% for 2025 and 2026, respectively, with earnings growth of 940% and 57.7% [24] Comparative Analysis - Pagaya's valuation is more favorable, trading at a trailing 12-month price-to-book (P/B) of 3.51X compared to Upstart's 5.10X [17] - Pagaya's flexible, capital-light model and strong funding network position it for long-term growth, while Upstart's model is more susceptible to credit cycles and capital market fluctuations [26][27]

Key Takeaways BLK ties up with AccessFintech to enhance bilateral connectivity and real-time post-trade collaboration.The partnership aims to give Aladdin clients transparency, faster resolution and lower operational risk.BLK also made a strategic investment in AccessFintech to aid product growth, global expansion and integration.BlackRock Inc. (BLK) has entered into a strategic tie-up with AccessFintech (“AFT”), a leading data and workflow collaboration network for financial markets, to deliver bilateral c ...