This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry The profitability of individual companies depends on Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Barnum, the nineteenth-century showman and politician, once said that money is a great master but an excellent Financial services industry report. He was only repeating what man had realised centuries before him. Indeed, the well-to-do had already started trying out ways to make wealth work for them.
The financial services industry manages money for individuals and corporations. It comprises such organisations as commercial and investment banks, insurance companies, hedge funds, credit-card companies, consumer finance firms, accounting agencies, and brokerage firms.
Financial services form the lifeblood of economic growth and development. They facilitate the setting up of big and small businesses and the expansion of businesses. Employment and entrepreneurship created with the help of the services enable people to earn and save.
Financial services show the poor ways out of poverty and of leading better lives. To the wealthy, financial services offers opportunities to make money grow. The financial services industry is the largest-earning sector in the world.
Through interventions in industry and agriculture and other formal sectors, they provide lines of credit and investment. Financial services industry report, financial services have largely eluded the poor and small and micro units, and there is great potential to extend the services to the informal sector, too.
Perhaps, the future of the financial sector lies here. Brief notes on sector history, current scenario, trends and outlook, region-wise, follow: However, during that decade, federal regulations curbing the activities of banks in mutual funds, insurance, and stocks made banks less profitable.
Soon, companies that offered higher returns from mutual funds that they invested in safe government securities began sprouting, severely affecting banks. However, banks rose from the ashes, making full use of gaps in Glass-Steagal Banking Act ofwhich had originally restricted their functions. They began to offer more services; they sold mutual fund products, established loan subsidiaries, and set up automatic teller machines.
These steps brought them unprecedented profits by The convergence of organisations offering financial products and services continued. Perhaps, a most important event was the setting up of Citigroup with the merger of Citicorp and Travelers Insurance.
Other mega mergers followed, breaking the compartmentalisation of the financial services sector. Today, many banks offer products much beyond their traditional portfolios and many financial enterprises offer conventional banking services. Despite its almost permanent sheen, the financial services industry has had to face many crises.
Among the more recent ones are Black Monday October 19,when the New York Stock Exchange experienced its biggest single-day loss in history, losing nearly 26 percent of its value; the dot-com bubble of ; and the subprime mortgage housing bubble crisis of The Gramm-Leach-Bliley Act passed in the US in allowed financial services companies to engage in multi-segment transactions, but brought in stringent regulations for protecting the customer and ensuring solvency.
But the industry came under strict government scrutiny following the collapse of the Enron Corporation in and accusations of fraud against top executives of JP Morgan Chase and Merrill Lynch and the bankruptcy of the financial services firm Lehman Brothers.
This has made the industry more customer-oriented and led to greater competition; but regulatory measures will have to become fool proof for it to thrive once again. Financial services in Europe The financial services industry in Europe, in the face of economic crises, continues to provide the means to finance infrastructure development and business expansion and make available saving and investment options to individuals.
Apart from a common currency, these nations have free-trade pacts, besides labour and capital agreements that allow the free movement of these resources.
The European Central Bank decides the monetary policy of the Eurozone, whose main job is to check inflation. Political decisions related to the Eurozone and the euro are under the purview of the Eurogroup.
The global economic crises since have deeply affected the financial services sector in Europe, too. Following the international financial crisis ofpublic funds were used generously to bail out banks and other financial institutions.
This has led to the decline in public finances and calls for a more robust financial system and more transparent financial markets.
The latest turbulence to hit the European finances services industry is the debt crisis, caused by mismanagement of public finances and overspending by governments. In order to stabilise the financial market and the financial services industry, the European Commission has put forward more than 40 regulatory reform measures.
Efforts to fully develop a European banking union that would preserve the single market for financial services are on the cards. Commercial banks include public sector and private sector banks and are under the regulatory supervision of the RBI.
Development finance institutions include industrial and agriculture banks. Non-banking finance companies NBFC provide loans, purchase stocks and debentures, and offer leasing, hire purchase, and insurance services.Accommodation & Food Services; Administration & Business Support Services; Agriculture, Forestry, Fishing & Hunting Industry Solutions.
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P. T. Barnum, the nineteenth-century showman and politician, once said that money is a great master but an excellent servant.
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