Regulatory rollbacks, interest rates on watch
|
A continually improving economy should boost the banking industry and consumer finance in 2017, but there’s also uncertainty about the impact of the Trump Administration.
On one hand, efforts in Washington D.C. to kill regulations like the Dodd-Frank Act of 2010 could help banks, but others warn that removing watchdog regulations could also wind up hurting consumers.
“A lot of it will have to do with unwinding the regulatory burden that has been rained down upon the [banking] sector,” UCF economist Sean Snaith said, mentioning Dodd-Frank as an obstacle for bankers.
Dodd-Frank was passed as a response to the Great Recession, which saw runaway mortgage fraud and easy-money lending practices in the American banking system. That, in turn, damaged the credit and financial outlook for millions of Americans who got caught up in foreclosures, layoffs and bankruptcy. Dodd-Frank clamped down on finance companies and created several regulatory agencies, including the Consumer Financial Protection Bureau. said projects like the Kissimmeebased sensor research facility BRIDG, which is slated to open in late March, could lead to more work and more jobs here this year.
“There is just a greater impact when you bring organizations and companies like that. It further develops our economy where you see some growth,” he said.
He said the Pro Bowl and two rounds of the NCAA’s March Madness tournament, are other reasons for optimism.
As more people visit the region for those events and others, it means more business for local companies, which could mean wage hikes and hiring, he said.
“You see these trends and it’s a stair-step trend you see,” he said. “I don’t know if we’ll ever get back to where we were before the housing crisis but there is reason for optimism here.”
One method to help small business grow is social-media advertising. Shelley Costello, a socialmedia consultant who works with businesses, says businesses are finding that Facebook is a way to add reach and versatility.
“Little tiny startups that contract with a big company can go from a man in a phone booth to a huge company quickly,” she said. “They need to be on Facebook advertising. Other businesses see you there.”
But a spray-and-pray approach won’t work, she said. Costello said many consumers have turned to local shops and targeting them on Facebook could mean business.
“People want to be local and want to feel that connection,” she said. “If you can make people feel that you, as a business, are connecting with Orlando, you’ll win them as customers.”
Regardless of the path to prosperity, the policies of a new president should be on everyone’s minds, Jones said.
“Consumers should always understand the goals of a new administration,” Jones said. “They will have to understand what a new administration sets out to do and how it will impact them.”