The Trump effect: How banks can help customers navigate uncertainty

The news: US President-elect Donald Trump is reshaping the financial sector before he even returns to the White House.

Here’s how:

• A regulatory pause: Banking regulators have put new initiatives on hold while they await changes in leadership—and therefore drastic changes in agendas, per The Financial Brand.
• Crypto gains: Cryptocurrency leaders are optimistic about having a “crypto friendly” president. This has helped fuel Bitcoin’s dramatic jump in value to more than $95,000—up almost $30,000 in less than one month, per Coindesk data. 

There’s uncertainty ahead: Additionally, Trump has proposed blanket tariffs on Mexico, Canada, and China, per The Guardian.

This plan has sparked panic among various industries, including manufacturing, which relies heavily on imports to protect its margins.

What that uncertainty means for banks: In the short term, banks are protecting their revenues by factoring in some market ups and downs. Many have raised their mortgage rates, despite the Federal Reserve’s decision to lower interest rates twice this quarter.

But long term, banks should prepare for more risk as the tariffs would raise prices and reduce buying power for consumers.

• That means less available funds to save and invest with banks.
• It could also prevent potential homebuyers from investing in new homes, keeping mortgage demand low for the foreseeable future.

What banks can do to help: Banks have an opportunity to position themselves as trusted financial partners by offering tools and solutions that help clients navigate rising costs and manage their money effectively.

• Provide budgeting-friendly resources like personalized financial planning tools, expense tracking apps, or savings accounts with flexible terms to help clients adjust their spending and saving habits. 
• Proactively communicate strategies for maximizing financial resilience—like debt consolidation or mortgage refinancing options—which can both support customers in the short term and strengthen long-term relationships.

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