Trump 2.0 and Phl fintech

As President Trump returns to the White House, the global fintech sector is poised for significant shifts, with notable implications for the Philippines. Trump’s administration has been implementing policies that could reshape the fintech landscape, presenting both opportunities and challenges for Philippine stakeholders.

One of the most glaring changes is a potential shift toward a pro-growth policy framework. This can affect the fintech sector the most, because this approach is characterized by comprehensive deregulation efforts aimed at fostering innovation and reducing bureaucratic constraints.

In February 2025, Trump signed an executive order mandating a sweeping review of federal regulations, identifying and eliminating those that do not align with his administration’s priorities. The White House stated that the move aims to “ensure accountability for all agencies.”

This directive seeks to reduce federal oversight and curtail what is often referred to as the “administrative state.” The Office of Management and Budget (OMB) has been tasked with overseeing regulatory rollbacks across sectors, including financial services, energy and health care.

As part of Trump’s pro-growth agenda, the administration has reinstated a policy requiring the elimination of 10 regulations for every new one introduced. This aggressive deregulation strategy is expected to lower barriers for businesses, particularly in financial services.

How is this seen to impact the markets? Deregulation could lead financial institutions to scale back compliance requirements. The Trump administration has intensified efforts to weaken regulatory agencies such as the Consumer Financial Protection Bureau (CFPB), which was established after the 2008 financial crisis to oversee banks and protect consumers. With a diminished CFPB, financial institutions may experience fewer regulatory constraints, potentially boosting revenue and profitability.

Stock market valuations could also be affected. According to global market strategist Savita Subramanian, while stocks currently appear overvalued – with 19 out of 20 valuation metrics exceeding historical averages – deregulation could justify these high valuations by reducing costs and increasing earnings for businesses.

Investment strategies are also expected to shift. Analysts recommend investing in heavily regulated industries that stand to benefit the most from deregulation. These sectors include financial services (banks, fintech firms, insurance companies), consumer goods, commodities (oil, gas, raw materials), transportation and capital goods (manufacturing, industrials).

What are its implications for the Philippine fintech space? Our fintech ecosystem is thriving, with over 300 companies as of 2024. The sector is dominated by payments firms, which constitute 35.4 percent (116 companies) of the market, followed by lending (22.2 percent with 73 companies), remittances (9.1 percent with 35 companies), and e-wallets (7.1 percent with 29 companies). Mynt, the operator of GCash, achieved a valuation of $5 billion in August 2024, the biggest in Southeast Asia, reflecting strong investor confidence.

With 79 percent of Filipinos viewing the US as the most trusted partner – followed by Japan (50 percent), Canada (43 percent) and Australia (42 percent) – strong international ties continue to drive the Philippine fintech sector’s growth. Trump’s pro-business policies could attract more US investments, bringing capital and expertise that can help boost the country’s position as a fintech leader in Southeast Asia.

However, this could also lead to increased competition. A more business-friendly US regulatory environment is expected to spur the growth of American fintech firms, some of which may look toward Southeast Asia, including the Philippines, for expansion. Local fintech players will need strategic adaptations to maintain market share in an increasingly competitive landscape.

We may also witness regulatory benchmarking. Philippine regulators could take cues from US deregulation measures, using them as a reference for championing innovation while maintaining consumer protection. Insights from these policy shifts could help refine our own regulatory frameworks.

One significant development to consider is that on Feb. 21, 2025, the Financial Action Task Force (FATF) announced the removal of the Philippines from its ‘grey list’ of countries. This ‘dirty list’ includes countries under increased monitoring for deficiencies in anti-money laundering and counter-terrorism financing measures.  This decision follows years of efforts by the Philippines to strengthen its financial regulatory framework and address the deficiencies identified since its inclusion in June 2021.

Our exit carries several positive implications, including faster and more cost-effective cross-border transactions. Financial institutions may ease additional compliance measures that were previously required for transactions involving the Philippines, improving efficiency and boosting investor confidence. This milestone is expected to drive foreign investments and contribute to sustained economic growth.

The world is undergoing a seismic shift, driven by technological innovation, geopolitical tensions, climate emergencies, and economic transformation. To remain competitive, nations must recalibrate their strategies and adapt swiftly to evolving global conditions.

In response to these challenges, Fintech Alliance PH will host the annual Manila Tech Summit 2025 on Aug. 26-27 at the Marriott Grand Ballroom. Themed “Forging the New Global Order: Risks and Opportunities Redefined,” the summit will bring together global industry leaders to discuss the pressing challenges and opportunities arising from these global shifts.

Engagement in such discussions is crucial for positioning the Philippine fintech sector ahead of regulatory and investment trends. With Trump’s pro-growth policies reshaping the financial landscape, local fintech firms must embrace strategic partnerships, regulatory agility and continuous innovation.

The Manila Tech Summit 2025 presents a valuable opportunity for industry leaders to align with global trends, adapt to emerging challenges, and seize new growth prospects. The goal is clear: the Philippines must not only keep pace with the evolving fintech landscape but thrive in it.

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Lito Villanueva is the Philippines’ leading and award-winning thought leader in inclusive digital finance. As EVP and chief innovation and inclusion officer at RCBC, he has led several digital initiatives at scale. He is also the founding chairman of Fintech Alliance PH, overseeing 95 percent of the nation’s digital retail financial transactions. He is the first global chairman of the South Africa-based Alliance of Digital Finance Associations, a co-founder of the Asia FinTech Alliance and a permanent council member of the Asia FinTech Forum. He has substantially impacted the fintech landscape in the Philippines through his leadership and innovative efforts. His contributions have been crucial in advancing the fintech ecosystem in the Philippines, making financial services more inclusive and efficient.