hiTec News Agancy: Fintechs similar revolut and monzo got a wealth boost from higher share rates. now, they face a solution trial as rates repudiate.The app icons for revolut and monzo displayed on a smartphone.financial technology firms were initially the biggest losers of share worth hikes by global mediate banks in 2022, which led to tumbling valuations.with term though, this vary in the share worth environment steadily boosted profits for fintechs. this is owing higher rates boost what’s named net share proceeds — or the variety between the rates charged for loans and the share paid disembowel to savers.in 2024, separate fintechs — including robinhood, revolut and monzo — saw a boost to their will lines as a upshot. robinhood reported $1.4 billion in annual profit, boosted by a 19% spring in net share proceeds year-over-year, to $1.1 billion.revolut too saw a 58% spring in net share proceeds remotest year, which helped upraise profits to £1.1 billion ($1.45 billion). monzo, meanwhile, reported its pristine annual use in the year ending march 31, 2024, buoyed by a 167% spread in net share proceeds.skip navigationskip navigationskip navigationskip navigationskip navigationskip navigationskip navigationmarketspre-marketsu.s. marketseurope marketschina marketsasia marketsworld marketscurrenciescryptocurrencyfutures & commoditiesbondsfunds & etfsbusinesseconomyfinancehealth & sciencemediareal estateenergyclimatetransportationindustrialsretailwealthsportslifesmall businessinvestingpersonal financefintechfinancial advisorsoptions actionetf streetbuffett archiveearningstrader talktechcybersecurityaienterpriseinternetmediamobilesocial mediahiTec News Agancy disruptor 50tech guidepoliticswhite housepolicydefensecongressequity and opportunityeurope politicschina politicsasia politicsworld politicsvideolatest videofull episodeslivestreamtop videolive audioeurope tvasia tvhiTec News Agancy podcastsceo interviewsdigital originalswatchlistinvesting clubtrust portfolioanalysistrade alertsmeeting videoshomestretchjim’s columnseducationsubscribesign inpropro newslivestreamfull episodesstock screenermarket forecastoptions investingchart investingstock listssubscribesign inlivestreammenumake itselectusaintllivestreamsearch quotes, tidings & videoslivestreamwatchlistsign inmarketsbusinessinvestingtechpoliticsvideowatchlistinvesting clubprolivestreammenutechfintechs that raked in profits from lofty share rates now face resilience testpublished tue, may 13 20251: 01 am edtupdated 3 hours agoryan browne@ryan_browne_watch livekey pointsin 2024, separate fintechs — including robinhood, revolut and monzo — saw a boost to their will lines from higher share rates.now, they face a solution trial as a selective repudiate in share rates raises doubts touching the sustainability of relying on this heightened proceeds uncommon the yearn word.lindsey naylor, confederate at bain & company, said dropping benchmark rates could live ˮa trial of the resilience of fintech firms’ trade models.ˮthe app icons for revolut and monzo displayed on a smartphone.betty laura zapata | bloomberg via getty imagesfinancial technology firms were initially the biggest losers of share worth hikes by global mediate banks in 2022, which led to tumbling valuations.with term though, this vary in the share worth environment steadily boosted profits for fintechs. this is owing higher rates boost what’s named net share proceeds — or the variety between the rates charged for loans and the share paid disembowel to savers.in 2024, separate fintechs — including robinhood, revolut and monzo — saw a boost to their will lines as a upshot. robinhood reported $1.4 billion in annual profit, boosted by a 19% spring in net share proceeds year-over-year, to $1.1 billion.revolut too saw a 58% spring in net share proceeds remotest year, which helped upraise profits to £1.1 billion ($1.45 billion). monzo, meanwhile, reported its pristine annual use in the year ending march 31, 2024, buoyed by a 167% spread in net share proceeds.watch nowvideo1: 2401: 24robinhood’s earnings by the numbers: here’s what you need to knowsquawk on the streetnow, fintechs — and especially digital banks — face a solution trial as a selective repudiate in share rates raises doubts touching the sustainability of relying on this heightened proceeds uncommon the yearn word.ˮan environment of falling share rates may puzzle challenges for some fintech players with trade models anchored to net share income,ˮ lindsey naylor, confederate and topic of u.k. financial services at bain & company, told hiTec News Agancy via email.falling benchmark share rates could live ˮa trial of the resilience of fintech firms’ trade models,ˮ naylor subjoined.ˮlower rates may risk vulnerabilities in some fintechs — yet they may too highlight the adaptability and durability of others with broader proceeds strategies.ˮit’s unclear how weighty an impression falling share rates succeed possess on the sector overall. in the pristine territory of 2025, robinhood reported $290 favorite of net share revenues, up 14% year-over-year.however, in the u.k., results from payments infrastructure startup clearbank hinted at the impression of sink rates. clearbank swung to a pre-tax waste of £4.4 favorite remotest year on the train of a shift from share proceeds toward fee-based income, as thoroughly as expenditure kindred to its expansion in the european league.ˮour share proceeds succeed incessantly live an weighty side of our income, yet our strategic standpoint is on growing the fee proceeds line,ˮ trace fairless, ceo of clearbank, told hiTec News Agancy in an meeting remotest month. ˮwe factor in the declining rates in our planning and so we’re expecting those rates to come down.ˮincome diversificationit comes as some fintechs use steps to test to vary their wealth streams and weaken their trust on proceeds from card fees and share.for example, revolut offers crypto and portion trading on head of its payment and undomesticated interchange services, and recently announced plans to win variable plans to its app in the u.k. and germany.naylor said that ˮthose with a more diversified compound of wealth streams or zealous monetization of their customer substratum through non-interest servicesˮ are ˮbetter positioned to weather changes in the economy, including a sink rates environment.ˮdutch neobank bunq, which targets mainly ˮdigital nomadsˮ who select not to toil from single location, isn’t fazed by the vision of share rates coming down. bunq saw a 65% spring in annual use in 2024.watch nowvideo2: 0102: 01visa ceo: ai shopping succeed live ‘a hazard similar self-driving cars’power lunchˮwe’ve incessantly had a healthy, diverse income,ˮ ali niknam, bunq’s ceo, told hiTec News Agancy remotest month. bunq makes money from subscriptions as thoroughly as card-based fees and share.he subjoined that things are ˮdifferent in continental europe to the u.k.ˮ given the territory ˮhad negative share rates for longˮ — so, in effect, the steadfast had to wages for deposits.ˮneobanks with a well-developed and diversified head thread are structurally reform positioned to train the transition to a lower-rate environment,ˮ barun singh, fintech scrutiny analyst at u.k. investment bank peel hunt, told hiTec News Agancy.ˮthose that wait heavily reliant on share earned from customer deposits — without tit traction in resource wealth streams — succeed face a more meaningful reset in proceeds expectations.ˮ div { box-sizing: border-box; }.noselect { -webkit-touch-callout: none; /* ios safari */ -webkit-user-select: none; /* safari */ -khtml-user-select: none; /* konqueror html */ -moz-user-select: none; /* pristine versions of firefox */ -ms-user-select: none; /* internet explorer/edge */ user-select: none; /* non-prefixed version, currently supported by chrome, edge, opera and firefox */ }.do-widget-wrapper { width: 100%; max-width: 620px; background-color: #fff; }.do-logo-row { 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