Financial technology firms were initially the biggest losers of interest rate hikes by global central banks in 2022, which led to tumbling valuations.

With time though, this change in the interest rate environment steadily boosted profits for fintechs. This is because higher rates boost what’s called net interest income — or the difference between the rates charged for loans and the interest paid out to savers.

In 2024, several fintechs — including Robinhood, Revolut and Monzo — saw a boost to their bottom lines as a result. Robinhood reported $1.4 billion in annual profit, boosted by a 19% jump in net interest income year-over-year, to $1.1 billion.

Revolut also saw a 58% jump in net interest income last year, which helped lift profits to £1.1 billion ($1.45 billion). Monzo, meanwhile, reported its first annual profit in the year ending March 31, 2024, buoyed by a 167% increase in net interest income.

Now, fintechs — and especially digital banks — face a key test as a broad decline in interest rates raises doubts about the sustainability of relying on this heightened income over the long term.

“An environment of falling interest rates may pose challenges for some fintech players with business models anchored to net interest income,” Lindsey Naylor, partner and head of U.K. financial services at Bain & Company, told CNBC via email.

Falling benchmark interest rates could be “a test of the resilience of fintech firms’ business models,” Naylor added.

“Lower rates may expose vulnerabilities in some fintechs — but they may also highlight the adaptability and durability of others with broader income strategies.”

It’s unclear how significant an impact falling interest rates will have on the sector overall. In the first quarter of 2025, Robinhood reported $290 million of net interest revenues, up 14% year-over-year.

However, in the U.K., results from payments infrastructure startup ClearBank hinted at the impact of lower rates. ClearBank swung to a pre-tax loss of £4.4 million last year on the back of a shift from interest income toward fee-based income, as well as expenditure related to its expansion in the European Union.

“Our interest income will always be an important part of our income, but our strategic focus is on growing the fee income line,” Mark Fairless, CEO of ClearBank, told CNBC in an interview last month. “We factor in the declining rates in our planning and so we’re expecting those rates to come down.”

Samsung on Tuesday unveiled a thin version of its flagship smartphone in an unusually timed launch as it looks to maintain momentum in its mobile divison against an uncertain consumer backdrop and U.S. tariff policy.

The Samsung Galaxy S25 Edge is just 5.8 millimeters thin and weighs 163 grams, making it one of the thinnest smartphones on the market.

Samsung said the device starts at $1,099 and goes on sale on May 30.

The launch comes just under four months after Samsung staged its annual flagship phone launch for the S25 series. It is unusual for Samsung to launch a new high-end device this soon after the January event with the normal timeline generally being the middle of the year for the unveiling of its latest foldable phones.

The move highlights the South Korean tech giant’s desire to capitalize on the success of the S25 range as it faces rising competition from Chinese players and an uncertain macroeconomic environment.

Samsung reported last month that it saw a jump in revenue and profit in the first quarter of the year at its mobile division thanks to strong sales of its S25 series.

However, Daniel Araujo, vice president at Samsung’s mobile division, warned on an earnings call last month that smartphone demand is expected to decrease in the second quarter due to “seasonality trends” and forecasts could be “adjusted” further due to global tariff policy.

U.S. President Donald Trump’s “reciprocal” tariffs took effect in April though they were paused shortly after. The White House exempted certain tech products such as smartphones and chips, providing some reprieve for companies like Samsung and Apple. The U.S. and China meanwhile agreed on Monday to pause most of their tariffs on each party.

Araujo said that the S25 Edge could help “sustain flagship-centric sales,” underscoring why Samsung has decided to launch the phone now.

The phone also packs a dual camera system and Samsung’s latest AI features.

“For the second half of 2025 ‘thin is most definitely in’,” Ben Wood, chief analyst at CCS Insight, told CNBC.

“Samsung is first out the gate with a slim design, but Apple is expected to follow in September, and the burgeoning Chinese brands such as Honor and Xiaomi probably won’t be far behind.”

Samsung may be trying to get ahead of its closest rival Apple, which is gearing up to launch a thin version of its flagship device dubbed the iPhone 17 Air, according to a Bloomberg report this year.

“It is hard to believe this is not a pre-emptive strike following the widespread speculation that Apple will have a thin iPhone in its next line-up,” Wood added.

Coinbase is joining the S&P 500, replacing Discover Financial Services in the benchmark index, according to a release on Monday. Shares of the crypto exchange jumped 8% in extended trading.

The change will take effect before trading on May 19. Discover is in the process of being acquired by Capital One Financial.

Since going public through a direct listing in 2021, Coinbase has become a bigger part of the U.S. financial system, with bitcoin soaring in value and large institutions gaining regulatory approval to create spot bitcoin exchange-traded funds.

Bitcoin spiked last week, topping $100,000 and nearing its record price reached in January.

However, Coinbase has been a particularly volatile stock and is trading well below its peak from late 2021. The shares closed on Monday at $207.22, giving the company a market cap of $53 billion. At its high, the stock traded at over $357.

Stocks added to the S&P 500 often rise in value because funds that track the S&P 500 will add it to their portfolios.

The index, which is heavily weighted towards tech because of the massive market caps of the industry’s heavyweights, continues to add companies from across the sector. In September, Dell and defense software provider Palantir were added to the S&P 500, following artificial intelligence server maker Super Micro Computer and security software vendor CrowdStrike earlier last year.

To join the S&P 500, a company must have reported a profit in its latest quarter and have cumulative profit over the four most recent quarters.

Coinbase last week reported net income of $65.6 million, or 24 cents a share, down from $1.18 billion, or $4.40 a share a year earlier, after accounting for the fair value of its crypto investments. Revenue rose 24% to $2.03 billion from $1.64 billion a year ago.

Also last week, Coinbase announced plans to buy Dubai-based Deribit, a major crypto derivatives exchange for $2.9 billion. The deal, which is the largest in the crypto industry to date, will help Coinbase broaden its footprint outside the U.S.

Coinbase shares are down 17% this year, underperforming bitcoin, which is now up about 10% over that stretch.

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