The banking and finance industry may experience significant changes under the incoming federal administration, according to industry experts. President-elect Donald Trump's proposed policies, including lower interest rates and reduced regulatory oversight, could potentially benefit businesses. However, many proposals may take time to materialize or may not be implemented at all. Industry leaders from Canandaigua National Bank & Trust (CNB) in New York and Loyola University of Maryland’s Sellinger School of Business have expressed cautious optimism about the potential benefits while noting the uncertainties involved.

Industry professionals are cautiously optimistic about the new administration's plans. Brendon Crossing, a senior vice president at CNB, believes that Trump's policies should generally support business growth. Both he and Kevin DiGiacomo, another senior VP at CNB, expect positive changes but acknowledge that implementation will require time. Prior to the election, some business owners were hesitant due to high interest and construction rates, yet CNB has witnessed robust loan demand locally. Since the election, interest rates have trended downward, which should positively impact commercial lending.

Kevin DiGiacomo noted that the initial months of the new administration will likely focus more on discussions rather than immediate actions, as many changes need Congressional approval. He supports the idea of reducing corporate taxes and deregulating banks, advising clients to remain flexible and ready to adapt to policy shifts. Mary Ann Scully, dean of the Sellinger School of Business, emphasized the importance of tax and regulation policies for the banking sector. She highlighted that extending the provisions of the 2017 Tax Cuts and Jobs Act would create stability, although she warned that tax cuts in an already deficit-ridden environment could lead to long-term issues like inflation or a weaker U.S. dollar.

Deregulation could also boost bank activities such as mergers and acquisitions, which have been constrained recently. Scully expressed concerns about proposed tariff increases and deportation plans, noting their potential impact on import costs and labor-intensive industries. Despite these challenges, she advised businesses to focus on risk management, product development, customer service, and employee welfare. Jess LeDonne from The Bonadio Group echoed similar sentiments, emphasizing patience and preparation during this transitional period. While some proposals might not be as grand as promised, they could still significantly affect daily business operations.

LeDonne highlighted potential impacts on regulatory and compliance changes, with the new administration prioritizing deregulation to stimulate economic growth. Tax policy changes aimed at reducing rates could benefit businesses, but efforts to curb inflation might result in higher interest rates. Tariff increases and supply chain disruptions pose additional risks. Businesses should closely monitor changes to corporate tax rates and federal programs like research and development credits, as these could face cuts to fund other initiatives. Overall, the coming months will reveal how quickly and effectively the new administration can implement its proposals, impacting the financial landscape.