The U.S. financial technology sector could experience a significant upswing as President Donald Trump shifts his focus to affordability, according to analysts.



<h2>Affordability Shift Favors Fintechs</h2>



Trump’s recent policy shift is causing investors to reconsider parts of the financial sector, with a potential emphasis on affordability that could favor fintech challengers over traditional lenders, reported Reuters on Thursday, citing a Citigroup Inc. note.



Companies offering consumer-friendly credit and small-business services, such as Affirm Holdings Inc (NASDAQ:AFRM), SoFi Technologies Inc (NASDAQ:SOFI), and Block Inc (NYSE:XYZ), are well-positioned to benefit from this shift, according to Citi.



Other potential winners highlighted by Citi include restaurant technology platform Toast Inc (NYSE:TOST) and e-commerce firm Shopify Inc (NYSE:SHOP).



Traditional lenders initially rallied after Trump’s return to the White House in 2025, anticipating a more lenient regulatory environment. However, the recent focus on affordability could redirect attention to fintech challengers, the note from Citi suggested.



<h2>Fintech Growth Surges Amid Rising Risks</h2>



Fintech players have been on a growth trajectory since last year. Earlier this week, Block said it has delivered over $200 billion in global lending to customers through its credit products, including Cash App Borrow, Afterpay, and Square Loans.



Meanwhile, in December, SoFi announced its $1.5 billion fundraising plan to bolster its capital position, enhance financial flexibility, and support future growth and business opportunities.



However, not all players have a positive outlook. Kerrisdale criticized Affirm as a &#34;Buy Now, Cry Later&#34; story, warning that its rapid growth mirrors past subprime lending failures.



While the stock remains strong, the firm argues investors are underestimating downside risks, saying Affirm's 30%+ GMV growth since 2022 masks weakening credit quality driven by riskier lending at very high interest rates.



<h2>Trump’s Affordability Push Draws Mixed Reactions</h2>



Trump’s affordability push is part of a broader trend ahead of the mid-term elections. Opendoor Technologies Inc. (NASDAQ:OPEN) CEO Kaz Nejatian praised Trump's policy of blocking institutional investors from acquiring single-family homes and said that he is doing “an excellent job.”



However, Jina Yoon, Chief Alternative Investment Strategist at LPL Financial, noted that Trump’s housing affordability push may lead to market instability, as individual investors, not corporations, are the primary force crowding out homebuyers.



Similarly, Trump’s call for a nationwide 10% cap on credit card interest rates for a year could have far-reaching effects despite sounding great.



Jennifer Doss of CardRatings.com told Benzinga that limiting access to credit cards could hurt upward mobility by making it harder for consumers to build credit and potentially driving them toward more expensive, less regulated options like payday loans.



Price Action: Over the past year, SoFi and Affirm Holdings surged 48.32% and 29.05%, respectively, while Block declined 25.64% as per data from Benzinga Pro. 



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo courtesy: Shutterstock

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Citi analysts suggest that the U.S. fintech sector may benefit from President Trump's focus on affordability. Companies like Affirm, SoFi, and Block are positioned to gain as investors shift attention from traditional lenders to fintech challengers. While fintech growth continues, concerns about credit quality and market stability arise. Trump's affordability initiatives, including a proposed cap on credit card interest rates, have drawn mixed reactions, with some praising the efforts while others warn of potential negative impacts on consumer credit access. Over the past year, SoFi and Affirm stocks have risen, while Block's stock has declined.

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These Fintech Stocks Could Be Real Winners Amid Trump's Affordability Push, Says Citi