Affirm, Robinhood, SoFi stocks drop as US tariffs shake fintech

Shares of financial technology firms, including Affirm and Robinhood, have declined following the introduction of new US tariffs.

President Donald Trump recently announced a 10% baseline tariff on goods from all economies, raising concerns about potential price increases and reduced consumer demand.

Affirm’s stock has dropped over 21% since the announcement on Apr. 2, 2025. Meanwhile, Robinhood and SoFi have experienced declines of 17% and 20%, respectively.

Analysts indicate that fintech companies, which often cater to consumers sensitive to economic fluctuations, may face greater risks compared to traditional banks with more diversified client bases.

The tariffs have heightened concerns regarding borrowers’ capacity to repay loans. This is especially true for companies like Affirm and SoFi that extend credit.

Affirm reported a 2.5% delinquency rate for loans over 30 days late for the quarter ending December 31.

In comparison, SoFi reported a 0.55% delinquency rate for personal loans over 90 days late during the same period. The Federal Reserve noted a 2.75% delinquency rate for consumer loans over 30 days late across US banks.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Fintechs face higher vulnerability during economic shocks compared to diversified banks

While all financial institutions face pressure during economic downturns, fintech companies are particularly vulnerable to tariff-induced economic shocks due to their customer demographics and business models.

Unlike traditional banks with diversified revenue streams, fintechs like Affirm and SoFi primarily serve consumers who would be first to reduce spending during economic contractions, as noted in the original article.

Historical data from previous tariff implementations shows consumer sentiment falling by 8.6 points in August 2019, the largest drop since December 2012, with one-third of consumers specifically mentioning tariffs negatively 1.

This consumer impact is quantifiable: the 2018 China tariffs imposed a $419 annual cost per household, with 2019 tariffs projected to raise that burden to $831, significantly reducing discretionary income available for investment or loan repayments 2.

The vulnerability appears in delinquency rates: while Affirm reported 2.5% of monthly loans delinquent by more than 30 days and SoFi reported 0.55% of personal loans delinquent by more than 90 days, these figures could rise if tariff-induced inflation reduces consumers’ ability to service debt.