The financial services sector encompasses a broad range of businesses and institutions that provide financial products and services to individuals, businesses, and governments. This diverse sector includes banks, insurance companies, commercial lending, mortgage companies, fintech firms, neo-banks, investment banks, brokerages, private equity and wealth managers, and audit and professional services firms. At a macro-economic level, the sector is crucial to facilitating economic growth, the management of financial resources and the functioning of society.
Adapting to structural change
The financial services industry is continuing to go through massive structural change. Blockchain, big data, and AI is provoking a rethink of how products and services are envisioned, created, and made available to customers. New fintech’s and start-ups are challenging the status quo and disrupting the market, with their innovative growth and cost optimization processes.
Rising demand for sustainability
Broader environmental awareness and investor activism has precipitated a growing demand for sustainable products and services within the investment management community. This is borne out through the growing number of alternative funds with an ESG focus and increasing capital flowing to companies that invest in sustainable and responsible futures.
Anticipating future trends
Changes and trends that have a bearing on the financial services sector are leading indicators for where the world is heading and exemplify the importance of adaptation, innovation, and resilience in an ever-evolving landscape.
