Fintech Faces the Future: Adapting Beyond Interest Rate Profits

When interest rates spiked globally in 2022, fintech companies were among the hardest hit. Their valuations plunged as investors feared a slowdown in growth and lending activity.
But over time, these same rate hikes provided a financial cushion. The rise in net interest income — the difference between lending and savings rates — boosted profits.
Robinhood emerged as one of the success stories. In 2024, the firm reported a $1.4 billion annual profit, supported by a 19% increase in net interest income.
Revolut enjoyed similar momentum, with net interest income rising 58% and profits climbing to £1.1 billion. Monzo, for the first time, recorded an annual profit.
With central banks now lowering interest rates, these fintechs face a different kind of challenge. Their reliance on interest-related income raises concerns about long-term profitability.
According to Bain & Company’s Lindsey Naylor, declining rates could test fintech resilience, exposing cracks in business models that depend too heavily on favorable lending margins.
While Robinhood posted a 14% year-over-year increase in net interest revenue in early 2025, ClearBank swung to a loss of £4.4 million amid strategic shifts.
ClearBank’s pivot toward fee-based income and its expansion into the European market increased expenditures, illustrating how changing rate environments can impact different fintechs unevenly.
Fintechs like Revolut are now diversifying by offering crypto trading, stock investing, and even mobile plans. Their efforts reflect the need for broader, more flexible revenue models.