Fintech companies caught up in tariff turmoil

While banks can have a diverse client base that could insulate firms from sudden market contractions, fintech companies are more likely to serve consumers that would be at the forefront of an economic shock, analysts say. For companies that extend credit, like Affirm and SoFi, worsening consumer sentiment and fears that tariffs could drive up prices have called into question the ability of borrowers to pay off loans. U.S. consumer sentiment had already plunged to a nearly 2-1/2-year low in March amid worries that tariffs would boost prices and undercut the economy, according to the University of Michigan Surveys of Consumers.