Key Points
- Citigroup believes President Trump’s focus on affordability could be a major tailwind for fintech stocks.
- Companies that offer consumer-friendly credit and small-business services are best positioned to benefit.
- Trump’s proposed cap on credit card interest rates and his ban on institutional home buyers are seen as pro-fintech policies.
- The report highlights Affirm, Klarna, SoFi, and Block as potential winners.
President Trump’s populist, “affordability-driven” agenda could be a major tailwind for fintech stocks in 2026, according to a new Citigroup report. The bank’s analysts believe that Trump’s focus on consumer-friendly policies is shifting the spotlight from traditional banks to more innovative fintech challengers.
Companies that offer lower-cost credit and services to small businesses are particularly well-positioned to benefit.
Citi highlighted “buy-now, pay-later” providers like Affirm and Klarna, as well as fintech firms like SoFi and Block. They also see potential winners in the restaurant tech platform Toast and the e-commerce giant Shopify.
When Trump returned to the White House in 2025, traditional bank stocks rallied on the expectation of lighter regulation. But his recent push for affordability could change that. Earlier this month, he called for a one-year cap on credit card interest rates at 10%, a move that drew strong opposition from the banking industry. He also signed an executive order restricting large institutional investors from buying single-family homes, another move aimed at helping the “little guy.”
“Populism is on the rise as part of the affordability focus as midterms approach,” Citi’s analysts wrote. They believe this political environment could create a significant opportunity for fintech companies, seen as more on the consumer’s side.
While the fintech sector had a mixed year in 2025, with some stocks soaring and others falling, Citi’s report suggests that the political winds are now blowing in their favor.
