Trump’s Affordability Push May Benefit Fintech Over Traditional Banks
President Donald Trump's renewed focus on affordability ahead of the 2026 midterms could reshape the financial sector's winners and losers. Citigroup analysts highlight fintech disruptors—Affirm, Klarna, SoFi, and Block—as potential beneficiaries, while traditional banks may lose their regulatory advantage.
Digital finance platforms surged in 2025 despite mixed performance: SoFi rallied 70%, Affirm gained 22%, while Block slumped 23% amid payment sector competition. The Nasdaq's 20.4% rise underscores broader tech momentum.
"Populism fuels demand for accessible credit," Citigroup noted, pointing to BNPL services and small business tools as likely outperformers. Trump's proposed credit card rate caps could further accelerate this trend.