With Donald Trump back in the White House, the Fintech industry is set to undergo some major changes. The president is already making good on his campaign promise to streamline the regulatory landscape, even launching his own crypto Meme coin just before inauguration to show support for the fintech industry.
Then, just days after the swearing-in, he signed the “Strengthening American Leadership in Digital Financial Technology” executive order, which laid out his administration’s policy on fintech.
This was welcome news for many in the sector, who praised it as a needed change following years of Biden-era regulations that threatened to stifle growth. For example, the Fintech industry fell 20% in 2024 alone, bringing in a total of $43.5 billion. Compare that to the $54.2 billion generated just a year before.
The Trump administration is also expected to lower taxes, which will significantly benefit Series B and Series C fintechs. Already, many are making renewed investments, expecting the pro-business environment that characterized Trump’s first term.
As Series B and C companies scale, industries such as AI, Fintech, and Crypto are boosting their marketing efforts, often seeking support from the best digital marketing firms for startups such as AWISEE.com
After strong funding rounds, these firms find themselves adjusting strategies to take advantage of the new regulatory landscape.
Pomelo: International Money Transfers and Credit Accessibility
Pomelo is a Fintech company that aims to combine credit with international money transfers. It lets people in the United States extend their credit access to their families overseas.
According to Eric Velasquez Frenkiel, founder and CEO of Pomelo, the company is “on a mission to change how international money transfer fundamentally works.” The US startup raised $40 million in series B funding to streamline remittances and expand its credit access.
But while investors are buoyed by Trump’s pro-business environment with fewer regulatory barriers, his protectionist policies and willingness to use remittances as a negotiation tool are a concern.
During his first term, the president threatened to stop remittances to Mexico to try and get the Mexican government to fund the border wall. While the ban never occurred, it did send shockwaves in the LatAm fintechs like Pomelo, which largely rely on immigrants.
If Trump 2.0 errands a return of such policies, they could affect cross-border money flows and fintech companies like Pomelo that facilitate international transfers. On the bright side, a Trump-led push for deregulation could benefit the company by reducing its compliance burden.
Ramp: Adapting to Corporate Compliance Policies
Not many fintechs are set for a wild shift than Ramp. The US spend management company was launched in 2019, but not long after, it had to adapt to increased regulatory scrutiny under the Biden administration.
Unlike Trump, Joe Biden pushed for greater transparency in corporate spending and financial disclosures. This meant far tougher requirements for Ramp and other companies managing corporate expenses.
Despite the perceived challenges, the company has secured significant Series C and D funding, with $150 million raised in series D-2 funding round. With Trump’s return expected to bring tax cuts and deregulation efforts that favor corporate spending, Ramp’s fortunes can only get better.
With the rollback of financial regulations, Ramp will have a lighter compliance burden. Many spend management platforms are already taking advantage of this by investing more in AI-driven compliance and automation.
Chime: Navigating Consumer Protection Regulations
Chime is a San Francisco neobank that offers free financial services. It allows customers to create no-fee checking and savings accounts, access fee-free overdrafts, and even get their paycheck deposited 2 days early.
The company’s incredible series C funding has positioned it as one of the leading fintech startups in the country. So far, Chime has raised over $2.3 billion in total funding and has over 22 million users.
The company is another one of many that is set to benefit from a Trump presidency. While it’s not technically a bank, Chime navigates delicate consumer protection regulations and digital banking compliance.
In his first term, President Trump sought to reduce financial oversight in the Consumer Financial Protection Bureau (CFPB). And from the look of things, the second Trump administration is no different.
The administration has ordered the agency to stop nearly all work, effectively shutting it down. If the CFPB is closed, companies like Chime are set to benefit tremendously. With the CFPB gone or weakened, compliance costs for banks, lenders, and fintech companies are expected to go down.
Some in the fintech industry have also accused the agency of stifling financial innovation. With fewer restrictions, we expect companies like Chime to have more flexibility in developing new lending and payment solutions.
At the same time, some neobanks are worried about potential competition from traditional banks that may benefit from deregulation.
Sunbit: Point-of-Sale Financing and Lending Laws
Sunbit has transformed retail finance with its “Buy Now, Pay Later” model. The company offers point-of-sale lending with loans ranging from $50 to $20,000 at car dealerships, eye shops, and dentist offices.
The Trump administration is expected to be more friendly to BNPL lenders. Under Biden, the CFPB cracked down on these companies, treating them like traditional credit providers with stricter compliance rules.
With the CFPB essentially out of the way following Trump’s order to limit its operations, BNLP lenders like Sunbit and Klarna are expected to use this opportunity to expand their customer base thanks to fewer restrictions in issuing loans.
Plaid: Data Protection Under Public and Government Scrutiny
Plaid is a fintech unicorn that connects customer’s banking apps to their bank accounts and credit card providers. When transacting, Plaid ensures that your login information remains safe.
Plaid has raised over $734 million in funding across seven rounds, including $425 million in August 2021. This was under Biden, whose CFPB pushed for stronger consumer data rights and more regulation on open banking APIs.
Although financial security remains a bipartisan concern in Washington, the company will face fewer compliance requirements, making it easier to expand its services.
With Trump’s push for deregulation and lower tax rates, it’ll be interesting to see what the future holds for series B and C fintech companies. But even as deregulation reduces the compliance burden, fintech companies still have to navigate the ever-changing consumer protection laws.
