NewsGlobalUS Fintech Stocks Positioned to Benefit from Trump's Affordability Agenda, Citi Analysis ShowsUS Fintech Stocks Positioned to Benefit from Trump's Affordability Agenda, Citi Analysis Shows
Citigroup analysts project US fintech stocks will benefit from Trump's affordability-driven agenda ahead of 2026 midterms, with companies like Affirm, SoFi, Block, Toast, and Shopify positioned to gain from populist policies favoring consumer-friendly financial services. While traditional lenders initially rallied in 2025, the focus on affordability may shift investor attention to fintech challengers offering lower-cost alternatives, supported by policy initiatives including proposed credit card interest rate caps.
*this image is generated using AI for illustrative purposes only.
US fintech stocks are positioned to benefit from the Trump administration's affordability-focused agenda as the November 2026 midterm elections approach, according to analysts at Citigroup. The brokerage firm suggests that Trump's populist policy push is prompting investors to reassess parts of the financial sector, with fintech challengers potentially gaining an edge over traditional lenders.
Key Beneficiaries in Fintech Sector
Citigroup has identified several companies that are best positioned to capitalize on the affordability agenda:
| Company Type | Specific Companies | Positioning |
|---|---|---|
| Buy-now, pay-later providers | Affirm, Klarna | Consumer-friendly credit solutions |
| Fintech firms | SoFi, Block | Alternative financial services |
| Technology platforms | Toast | Restaurant technology solutions |
| E-commerce | Shopify | Small business services |
These companies are expected to benefit from their focus on consumer-friendly credit and small-business services, which align with the administration's affordability priorities.
Market Performance and Regulatory Shift
Traditional lenders initially experienced gains following Trump's return to the White House in 2025, driven by expectations of reduced regulatory oversight. However, the emphasis on affordability could redirect investor focus toward fintech alternatives that offer more accessible financial solutions.
The performance of fintech stocks in 2025 showed mixed results:
| Company | 2025 Performance | Market Context |
|---|---|---|
| SoFi | +70.00% | Strong outperformance |
| Affirm | +22.00% | Positive gains |
| Block | -23.00% | Underperformed peers |
| Nasdaq Composite | +20.40% | Benchmark comparison |
Block's underperformance was attributed to concerns over growth prospects and increased competition in the payments sector.
Policy Initiatives Supporting Fintech Growth
Trump's affordability agenda includes specific measures that could benefit smaller fintech companies. Earlier this month, the administration proposed a one-year cap on credit card interest rates at 10.00%, a move that drew criticism from the traditional banking industry, including opposition from JP Morgan Chase CEO Jamie Dimon.
Additionally, Trump signed an executive order aimed at restricting large institutional investors from competing with individual homebuyers, reinforcing the administration's commitment to affordability measures that could favor smaller financial service providers.
Market Outlook and Investment Implications
According to Citi's analysis, the rise of populism as part of the affordability focus creates opportunities for companies offering lower-cost, more user-friendly lending tools and services targeting small businesses. This trend suggests a potential shift in market dynamics that could favor innovative fintech solutions over traditional banking approaches.
The brokerage firm's assessment indicates that as the 2026 midterm elections approach, the political emphasis on affordability and populist policies may continue to create favorable conditions for fintech companies that can demonstrate clear value propositions for consumers and small businesses seeking accessible financial services.
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