Donald Trump’s shock victory in the US elections has sent shockwaves around the world, causing volatility in many key markets. FinTech is not immune to the effects of the Republican candidate’s ascent to power and commentators believe there are choppy waters ahead for US firms.
Fintech companies in the UK have seen a substantial drop in investment in the aftermath of Brexit and it is thought that the uncertainty created by the Trump presidency will have a similar effect on the USA. The real estate billionaire's proposed far-reaching changes to the nation's economic plans and the air of unpredictability around this is certain to keep investors on edge.
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Perhaps the deepest impact will be in terms of access to labour. Trump's hardline stance on immigration was key element of his election platform. With US startups sourcing many skills from abroad and more than half of the country's unicorns having been founded by immigrants, Trump's move to limit immigration and deport millions could have devastating ramifications.
In terms of regulation, Trump's temporary moratorium on changes to agency statutes has put paid for the time being to the FinTech community's hopes of specific rules formulated to stimulate growth in the sector. Trump has also indicated that he will seek to abolish the Consumer Finance Protection Bureau, which is seen as being friendly towards FinTech.
One FinTech sector towards which Trump has made positive overtures is the student loan industry. He intends to move the lucrative segment back into the private sector, providing opportunities for growth and innovation.
However, it remains to be seen if Trump will actually be able to implement many of his policies and secure the support of Congress. Only then will we be able to ascertain the true impact of his presidency on the FinTech industry.
