FinTech nCino Plans Initial Public Offering

It looks as though another FinTech initial public offering could soon be upon us. This week, nCino announced plans to go public. As TechCrunch reports, the firm is currently eying a share price between $22 to $24. With nCino planning to issue 7.625 million shares, the IPO could raise as much as $183 million and put the company’s value somewhere in the neighborhood of $2 billion. The stock is set to debut on the Nasdaq Global Select Market, using the ticker symbol “NCNO.”

Based in Wilmington, North Carolina, nCino bills itself as a bank operating system that aims to automate and streamline processes employed by banks, credit unions, and others. According to their updated S-1 filing, there are now more than 1,100 institutions using their platform. Moreover, these customers currently spans across 10 countries, while the company itself employs more than 900 people between seven global offices.

Meanwhile, on their website, nCino notes that their average customer sees a 22% improvement in efficiency, a 92% reduction in servicing costs, and a 127% increase in account opening completion rates among other benefits.

In their prospectus, nCino included testimonials from some of the institutions they work with. For example, TD Bank’s head of commercial banking Chris Giamo stated, “TD Bank’s investment into the nCino platform ultimately will enable us to provide a seamless experience to our clients and an improved employee experience — both critical to the success of an organization.” Giamo continued, “Through nCino, TD Bank is consolidating numerous legacy systems into one top-tier foundational platform that allows for better communication, credit administration and processes, and through data, advanced visibility into the lifecycle of relationships and future opportunities.” Speaking to more recent applications Coastal States Bank EVP and chief credit officer explained, “With nCino, we can not only provide much-needed funding to our small business customers, but we can track in real-time how much of our pipeline is related to COVID-19, easily create automated and customized reports, make changes quickly in a constantly-evolving situation, and ensure we are always remaining compliant.”

Famously, FinTechs haven’t always fared so well after going public. Common examples of this include online lenders LendingClub and OnDeck, which both received warm welcomes in their IPOs but have since struggled. On the other hand, Square Inc. has seen continued success, recently reaching an all-time high. Of course, while nCino may fall into the same broad label as those firms, the comparisons more or less stops there. Therefore it will be very interesting to see how investors react to the stock once it makes its big debut.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Top 10 Personal Finance Articles of the Month — June 2022 

It’s time again for one of my favorite features here on Dyer News: a look at the top 10 personal finance articles of the month. To start, we'll take another look at financial independence and freedom. Then, with the housing market going a bit crazy lately, we'll feature a pair of articles on home buying. Lastly, we'll cover tips for one-income households, finance after death, fighting inflation, and more. As...

Bilt Rewards Launches Travel Portal with Benefits for Cardholders

Last year, the startup Bilt made a splash when it announced a new service that would reward users for paying their rent. That premise was then expanded upon with the launch of the Bilt Mastercard, which is issued by Wells Fargo. Now, continuing to capitalize on both the hype of their product and the demand for travel, Bilt has debuted another new offering for customers. This week, Bilt Rewards announced...

Cash App Introduces Round-Up Investing Feature for Debit Card

Debit card customers looking to grow their investments gained a new, automated option today as Block Inc. (formerly Square Inc.) officially announced a new feature for its popular Cash App. Now, customers with the Cash App Cash Card can opt into Round Ups as a means of growing their investments. When this feature is toggled on, Cash App will round up debit card purchases to the nearest dollar and invest...