Companies linked to consumer-friendly credit and small business services, including buy-now, pay-later providers Affirm and Klarna, and fintech companies SoFi and Block, are among the best positioned to benefit, the bank said. Citi also named restaurant technology platform Toast and e-commerce company Shopify as potential winners.
Traditional lenders rallied after Trump’s return to the White House in 2025 on expectations of lighter regulation, but his emphasis on affordability could shift the spotlight to fintech challengers, the note said.
By 2025, SoFi was up about 70%, while Affirm was up more than 22%. However, Block fell more than 23%, underperforming its fintech peers and the broader market, with the Nasdaq Composite up about 20.4% over the same period amid concerns about payments growth and competition.
“Populism is rising as part of the focus on affordability as the medium term approaches,” Citi said, adding that companies offering cheaper, easier-to-use credit tools or services aimed at small businesses could see gains.
Earlier this month, Trump called for a one-year cap on credit card interest rates at 10%, drawing resistance from the banking industry, including JP Morgan Chase CEO Jamie Dimon.
The US president also signed an executive order aimed at preventing large institutional investors from competing with individual home buyers. This strengthened its affordability-focused agenda, which Citi said could help smaller fintechs.
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