The financial services industry encompasses a wide range of businesses that provide economic services. Banks, credit unions, and credit-card companies are examples of financial services. They also include mortgage, insurance, and retirement services. This article will discuss the growth, challenges, and compliance of the industry. What are the benefits and challenges of the financial services industry? How can businesses improve their compliance efforts? What are some good practices for financial services firms? Let’s look at each in turn.
Financial services industry
The Financial Services industry encompasses many subsectors. The industry is an important part of our economy, as it helps protect people from various risks and liabilities, such as death and injury. Some of the companies within this industry include banks, credit unions, insurance companies, and tax and accounting firms. Another subsector is debt resolution. A financial professional can also work in the area of investment banking. Listed below are some of the jobs available in this industry.
Growth
The growth of the financial services industry is fueled by the fact that the patterns of consumption are evolving, including demographic, social, and technological change. Over the next decade, most sectors will undergo significant disruptions. This article explores eight growth angles in the financial services industry. The first of these growth angles is the increasing use of technology. Rising incomes are driving increased consumer demand for financial services. Increased consumer access to financial services is also fueling growth in this sector.
Challenges
Consumer education on the unique features of financial services has always been a challenge. However, the digital age has changed the landscape for this industry, making it even more challenging to market. The problem is compounded by the fact that consumers are rarely interested in the topic and therefore do not process more than seven pieces of information at a time. As a result, consumers are more apt to be misinformed and therefore less likely to understand how financial services work.
Compliance
The world of compliance is changing rapidly, and regulatory change is occurring at an unprecedented pace. Compliance professionals are being asked to run marathons at sprint speed, and many have too many projects, limited resources, and a seemingly unsolvable number of key issues. New regulatory requirements, such as Covid-19, have made compliance harder than ever. Creating and maintaining a compliant home-working culture is becoming more difficult, as is collecting the required data.
Digital financial services
The growth of digital financial services is bringing new opportunities for people in developing countries. By making financial transactions faster, easier, and more secure, they are enabling greater economic inclusion and creating the basis for innovative business models. Our work in the Technology Division’s Digital Finance practice helps countries remove barriers to the provision of vital financial services. Through our research and partnerships, we develop innovative solutions to improve financial systems and promote greater transparency. We also advocate for new financial services and technologies that enable broader access to financial services.