In 2024, digital banking and fintech companies such as Robinhood, Monzo, and Revolut reaped significant financial gains from soaring interest rates. But as global economies shift toward easing monetary policies in 2025, these once-thriving firms are now under pressure to prove their long-term resilience.
High Interest Rates Fueled Fintech Growth
For much of 2024, high benchmark interest rates acted as a revenue windfall for fintech platforms. Robinhood, for instance, reported $1.4 billion in annual profit, largely driven by a 19% surge in net interest income to $1.1 billion. Likewise, Revolut posted a 58% increase in interest income, while Monzo achieved its first full-year profit thanks to a massive 167% jump in net interest income.
But the tide is turning. Central banks across major economies are now signaling interest rate cuts, posing a new challenge for fintechs reliant on net interest margins.
Can Fintech Models Survive Falling Rates?
Experts caution that this shift could expose structural weaknesses. Lindsey Naylor, a partner at Bain & Company, described the changing interest environment as “a key test of the resilience of fintech firms’ business models.” She noted that companies overly dependent on deposit-driven interest income could struggle unless they’ve diversified their revenue streams.
Although Robinhood still reported strong net interest earnings of $290 million in Q1 2025 — a 14% increase year-over-year — some fintechs are already feeling the pressure. ClearBank, a U.K.-based payments platform, swung to a £4.4 million pre-tax loss as interest income fell and operational costs related to EU expansion climbed.
Diversification Becomes a Survival Strategy
To buffer against the effects of rate cuts, many fintechs are shifting focus toward alternative revenue sources. Revolut, for example, is bolstering its ecosystem by offering crypto trading, stock investments, and even mobile plans in select European markets. These moves aim to reduce reliance on traditional banking income and enhance customer engagement.
Dutch digital bank Bunq, targeting globally mobile users, reported a 65% profit jump in 2024 and credits its success to income diversity. “We’ve always maintained a balanced revenue base,” said CEO Ali Niknam. Bunq’s income stems from subscriptions, card fees, and interest — giving it more flexibility in a declining-rate environment.
Analysts Weigh In: Adaptability is Key
According to Barun Singh, a fintech analyst at Peel Hunt, digital banks with a “diverse and well-developed top line” are better equipped to handle the shift. He warned that firms heavily reliant on interest from customer deposits — without parallel income streams — face a “meaningful reset in earnings expectations.”
In short, as interest rates dip in 2025, fintechs must quickly adapt or risk falling behind. Those investing in broader revenue models and deeper user monetization are likely to emerge stronger in a post-high-rate era.