The rise in interest rates has helped more fintech-oriented companies

The transition from A zero interest rate environment, ZIRP in common parlance, has given a tremendous boost to a number of fintech companies. Fintech entities that previously made most of their revenues from trade-related fees have seen interest-driven revenues rise this year. As a result, many fintech companies that seemed destined for a structural unraveling of their business model have proven to be more resilient than we expected; holding money today is a lucrative proposition.


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But it’s not just the fintech sector that’s seeing a similar tailwind from expanded cash holdings. SaaS is another.

Digging into this week’s earnings reports, two companies stand out: WalkMe and Monday.com. Both Israeli software companies reported their new results in the last few days. And both companies had certain profit results that exceeded expectations. In both cases, their results are partially predicated on interest-related income.

While we expect investors to pay more attention to operating results than to other sources of income, it is known that interest rates have risen so much that income from cash holdings has increased enough that their positive impact on income is expanding.

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