Financial technology companies could see new opportunities as Washington moves toward policies that aim to make things cheaper for regular Americans before the 2026 midterm elections, according to Wall Street analysts.
Citigroup researchers said President Donald Trump’s recent push on affordability might help newer financial companies instead of traditional banks. This comes as Trump tries to appeal to voters worried about high costs for credit and other financial services.
As noted by Reuters, analysts named several companies that could benefit. Buy-now, pay-later services like Affirm and Klarna are at the top, along with digital banking platform SoFi and payment processor Block. Restaurant technology company Toast and online retail platform Shopify also made Citigroup’s list.
Big banks saw their stocks go up when Trump took office in 2025 because investors expected fewer regulations. But the president’s new focus on keeping costs down for everyday people could change which financial companies investors pay attention to, the brokerage firm said.
Last year showed mixed results. SoFi shares jumped roughly 70 percent, while Affirm climbed more than 22 percent. Block had a rough time, dropping over 23 percent as investors worried about its growth and tough competition in payments. The Nasdaq Composite index rose about 20.4 percent during the same time.
“Populism is on the rise as part of the affordability focus as midterms approach,” Citigroup wrote. Companies that offer cheaper and easier lending products or services for small businesses might do well.
Trump’s credit card rate cap sparks major controversy
The biggest fight started earlier this month when Trump asked Congress to cap credit card interest rates at 10 percent for one year. Banks pushed back hard.
JPMorgan Chase boss Jamie Dimon spoke out at the World Economic Forum in Davos. He called the cap an “economic disaster” and said it could cut off credit access for roughly 80 percent of Americans. Taking a shot at supporters of the rate cap, Dimon suggested testing it first in Vermont and Massachusetts, the home states of Senators Bernie Sanders and Elizabeth Warren, who back the idea.
On Wednesday, Trump formally asked Congress to pass legislation for the one-year cap. Major credit card companies told reporters they haven’t changed their rates yet. Banking industry people privately said they hope to block the request, pointing out how hard it would be to get through Congress.
Some fintech companies saw an opening. Bilt, a financial technology firm, rolled out new credit cards with interest rates capped at 10 percent for one year. Klarna’s boss backed Trump’s plan, calling current credit card interest rates an “extraction machine.”
These policies show a real change in the financial sector
Trump has made other moves on affordability too. He signed an executive order meant to stop large investment firms from competing against regular buyers in the housing market. Citigroup said this fits with the president’s affordability push and could give smaller financial technology companies more room to grow.
After years of traditional banks running the lending business, newer tech-focused companies might get fresh chances to grab market share. Whether these companies can actually deliver lower costs and still make money is another story.
As the 2026 midterms get closer, both political parties will probably keep talking about making life cheaper for working families. For investors, that means watching which financial companies can line up with this political moment.
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