US Financials Face Higher Rate Headwinds: OppFi, Enova International, and Huntington Bancshares in Focus

The US financial sector is experiencing significant shifts due to higher interest rates and a firmer US dollar. This has led to changes in funding costs, loan demand, and trading activity for various banks and brokers.

Three US financial stocks closely tied to these rate hikes are OppFi (OPFI), Enova International (ENVA), and Huntington Bancshares (HBAN). These companies generate significant revenue from consumer loans that price off the rate backdrop, making them susceptible to Fed policy moves.

OppFi's digital credit model is particularly exposed to interest rate changes, with its interest and fee income directly tied to the rate backdrop. The company has seen double-digit revenue growth due to strong digital adoption among underserved consumers and investments in automation.

However, OppFi's margin story faces a key test as funding costs and credit standards shift. Enova International also fits this higher-rate financials screen, with its interest and fee-based lending model affected by Fed policy changes.