Five Mid-Cap Fintech Companies Worth Watching After the Fed's Rate-Cut Decision

Why Fintech Is Gaining Traction in a Lower-Rate Environment

The Federal Reserve’s recent monetary policy shift signals a turning point for financial technology companies. On December 10, the Fed reduced benchmark interest rates by 25 basis points, bringing the range to 3.5-3.75%. This move represents the third cut of 2025, adding to the 100 basis points reduction from the previous year. Additionally, the Fed announced plans to purchase $40 billion in Treasury Bills, a measure that immediately pressured short-term government bond yields downward.

For the fintech sector, this environment creates favorable conditions. Interest rate movements and fintech performance move in opposite directions—lower rates remove obstacles to innovation funding and customer acquisition costs for these companies. As digital financial services expand alongside broadband proliferation and AI-powered solutions, mid-cap fintech companies are positioned to capture significant market share. These firms offer agility that larger institutions lack, combined with the scale and resources to capture institutional investor attention.

Five Mid-Cap Fintech Companies to Monitor

Analysts have identified five mid-cap fintech companies worth considering for investors seeking exposure to this growth trajectory. Each carries strong ratings based on fundamental strength:

EVERTEC Inc. (EVTC) — Zacks Rank #2

EVERTEC operates as a transaction processing powerhouse across Latin America and the Caribbean. The company’s business spans Merchant Acquiring Solutions, Payment Processing, and Business Solutions divisions. Its service portfolio includes the ATH network, payment processing, card product servicing, electronic benefit transfers, IT services, database management, and point-of-sale systems.

Looking ahead, EVERTEC is projected to deliver 5.3% revenue growth and 4% earnings expansion next year. The consensus estimate for next year’s earnings has improved by 0.8% over the past 30 days, suggesting cautious optimism among analysts tracking the company’s execution.

Enova International Inc. (ENVA) — Zacks Rank #2

Enova International differentiates itself by serving an underserved market segment: consumers with bank accounts seeking alternative credit solutions when traditional lenders prove inaccessible. ENVA operates across the United States, United Kingdom, Australia, and Canada through its online financial services platform.

The company’s growth profile stands out within the peer group. Revenue is expected to accelerate 15.8% next year, while earnings should climb 10.5%. Over the past 60 days, the earnings consensus estimate has improved 0.9%, reflecting positive momentum in the company’s market positioning.

LendingClub Corp. (LC) — Zacks Rank #1

LendingClub operates an internet-based financial marketplace connecting borrowers and investors. The platform handles loan origination, pricing, servicing, and support while maintaining robust regulatory and legal frameworks. LC’s aggressive growth outlook distinguishes it within this cohort.

Expected revenue growth of 13.2% pales in comparison to its projected earnings expansion of 35.7% next year—a reflection of improving operational leverage and unit economics. Most impressively, the consensus estimate for next year’s earnings has surged 16.4% over the last 60 days, signaling strong analyst conviction about the company’s trajectory.

OppFi Inc. (OPFI) — Zacks Rank #1

OppFi operates a fintech platform enabling banks to serve consumers traditionally excluded from mainstream credit markets. Through its OppLoans offering, OPFI provides installment lending to this underserved demographic, creating a unique market position.

The company projects 9.1% revenue growth and 8.6% earnings growth for next year. Despite more modest growth metrics than some peers, OPFI has benefited from strong analyst momentum, with the earnings consensus estimate improving 15.5% over the past 60 days.

Bread Financial Holdings Inc. (BFH) — Zacks Rank #2

Bread Financial operates as a technology-forward financial services company delivering payment, lending, and savings solutions through digitally-enabled channels. The firm leverages data-driven marketing strategies and benefits from investments in strategic growth areas and digital innovation.

BFH’s balance sheet demonstrates strength, supported by solid cash reserves and manageable debt levels. For next year, the company expects 3.3% revenue growth, though earnings are projected to decline 9.6%—a temporary headwind as the company invests in growth initiatives. The earnings consensus has improved modestly by 0.7% over the past 30 days.

The Mid-Cap Advantage in Fintech

These five mid-cap fintech companies represent different market segments and growth profiles, yet they share a common thread: exposure to secular trends benefiting financial technology. Lower interest rates remove barriers to their expansion, while AI and machine learning capabilities increasingly define competitive advantages in banking, payments, and investment management.

Mid-cap companies occupy a sweet spot for investors—large enough to access capital markets and execute strategies, yet small enough to capture outsized growth as their sectors expand. The fintech space exemplifies this dynamic, with companies ranging from payment processors to alternative credit platforms all positioned to benefit from both technological advancement and favorable rate dynamics.