PUBLISHER: The Business Research Company | PRODUCT CODE: 1429430
PUBLISHER: The Business Research Company | PRODUCT CODE: 1429430
Financial services encompass products and offerings provided by financial institutions to facilitate diverse financial transactions and activities, including loans, insurance, credit cards, investment opportunities, and money management.
The primary categories of financial services include lending and payments, insurance, reinsurance, insurance brokerage, investments, and foreign exchange services. In the lending and payments market, financial institutions extend funds and make them accessible to individuals, small- and medium-sized businesses, as well as large corporations. These services cater to the needs of individuals, corporations, governments, and investment institutions.
The financial services research report is one of a series of new reports from The Business Research Company that provides financial services statistics, including financial services industry global market size, regional shares, competitors with financial services share, detailed financial services segments, market trends and opportunities, and any further data you may need to thrive in the financial services industry. This financial services research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The financial services market size has grown strongly in recent years. It will grow from $31138.82 billion in 2023 to $33539.52 billion in 2024 at a compound annual growth rate (CAGR) of 7.7%. The growth witnessed in the historical period can be ascribed to the escalating demand for swift and real-time fund transfers, the surge in the incorporation of blockchain technology within the banking sector, the increasing utilization of digital banking services, insurance reforms initiated by governments, robust economic expansion in emerging markets, and the growing prevalence of cryptocurrency usage.
The financial services market size is expected to see strong growth in the next few years. It will grow to $44925.71 billion in 2028 at a compound annual growth rate (CAGR) of 7.6%. The anticipated growth in the forecast period can be linked to the expanding wealth of high-net-worth individuals, a heightened demand for alternative investments, the increased adoption of blockchain to mitigate fraudulent transactions, the upswing in individual investors' investments, the surge in home ownership and mortgages, the escalating trend of urbanization, and the overall increase in investments. Key trends expected in the forecast period encompass the incorporation of more intelligent safety systems into financial services, the deployment of artificial intelligence (AI) to enhance service quality in financial operations, investments in new product launches to broaden the product portfolio and augment market share, the adoption of cloud technology for improved resilience and the introduction of new capabilities, along with the provision of personalized and customized services, particularly in the realm of wealth management.
The global payments industry has experienced a rapid surge in the adoption of EMV technology, driven by the enhanced data security provided by EMV chips and PIN cards in comparison to traditional magnetic stripe cards. EMV, a security standard for various payment cards, incorporates debit, credit, charge, and prepaid cards. The chip securely holds cardholder and account data through a combination of hardware and software security measures. As of August 2023, Thales Group reported that over 12.8 billion EMV chip cards were in circulation in 2022, marking a nearly 6% increase from 2021. This escalating trend in the payment industry contributes to the growth of the financial services market.
The expansion of new business finance models is anticipated to drive the growth of the financial services market in the future. Business expansion signifies the growth of a business to a stage where it explores additional avenues to increase profitability. Finance software plays a pivotal role in propelling the finance services industry forward by enhancing efficiency, elevating customer experience, promoting digital channel utilization, introducing innovative financial services, and reinforcing security. For example, as of May 2023, the Finance & Leasing Association (FLA) reported a 14% increase in total asset finance new business in March 2023 compared to the same month in 2022. Additionally, in Q1 2023, new business exhibited a 14% rise compared to Q1 2022. Consequently, the surge in demand for branded equipment and new commercial models is steering the growth of the asset finance software market.
Prominent companies within the financial services market are introducing innovative financial products, such as capital and accounts platforms, to deliver reliable services to their customers. The Capital and Account platform is a financial service product designed to provide users on the platform with swift and flexible cash advances, offering instant access to funds. In October 2022, Adyen, a Netherlands-based financial technology platform, unveiled its Capital and Accounts platform, allowing users to conveniently spend their funds through platform-branded payment cards. This platform is accessible in both the US and Europe. The capital product facilitates fast and flexible cash advances based on users' historical payment data, while the account product empowers users to manage their finances and access funds instantly.
Several wealth management companies are making substantial investments in big data analytics capabilities to derive insights about their clients. The implementation of big data solutions aims to provide insights into client segments, product penetration, and the effectiveness of training programs. These technologies are instrumental in evaluating clients' preferences for various products and services, determining their lifetime value, understanding investment patterns, and assessing clients' risk-taking abilities. Additionally, big data analytics assists wealth management companies in monitoring business performance, enhancing client acquisition and retention rates, boosting sales, and delivering real-time investment advice. For example, Boston-based investment firm CargoMetrics utilized the Automatic Identification System (AIS) to gather data on commodity movement, including cargo location and size. This data was leveraged to create an analytics platform for trading commodities, currencies, and equity index funds. The tool was subsequently offered to other hedge funds and wealth managers.
Major companies operating in the financial services market report are Allianz, Ping An Insurance Group, Industrial and Commercial Bank of China, JPMorgan Chase & Co, AXA, China Construction Bank, Agricultural Bank of China, China Life Insurance Company, Bank of America, Generali Group, Axis Bank, Bank Of Baroda, BNL, FamPay, Federal Bank, Finin, HDFC Bank, Airwallex, American Express, ANZ, DBS Bank, ICBC Bank, WeBank, ChiantiBanca, Ant Financial, New India Assurance - General Insurance Brokers, Oriental Insurance Company, ICICI Lombard General Insurance Company, United India Insurance, Fanhua Inc., Chang'an Insurance Brokers Co., Ltd., Mintaian Insurance Surveyors & Loss Adjusters Group Co., Ltd., Shenzhen Huakang Insurance Agency Co. Ltd., CPIC, China Property and Casualty Reinsurance Company Ltd., PICC Reinsurance Co. Ltd., Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, RBS Group, Caixa Geral De Depositos, La Banque Postale, Cofidis, Hello bank!, BNP Paribas, Santander, Marsh & McLennan Companies UK Limited, Arthur J Gallagher & Co, Willis Towers Watson PLC, Aon Holding Deutschland GmbH, Funk Gruppe GmbH, Ecclesia Holding GmbH, Hannover Re, Munich Re, Swiss Re, Credit Agricole Assurances, CNP Assurance, Societe Generale, Deutsche Bank, Sberbank, TKB Investment Partners (JSC), Alfa Capital, RSHB Asset Management, UFG Asset Management, PZU Group, Aviva Investors Poland, Ipopema, BT Asset Management SAI, Prudential, Lincoln National, MassMutual, John Hancock, Transamerica, Manulife Financial, Chubb Life, Great-West Lifeco, Inc., Sun Life Financial, IA Financial Group, Fairfax Financial Holdings Ltd., Northwestern Mutual, New York Life, BlackRock, Vanaguard, State Street Global Advisors, Fidelity Investments, Berkshire Hathaway Re, Elevance Health, Capital Group, Bank Of New York Mellon, PIMCO, Goldman Sachs, PGIM, TD Asset Management, Brookfield, RBC Global Asset Management, BMO Global Asset Management, Companhia de seguros alliance do Brazil, Bradesco Vida E Previdencia S.A, AR LIFE, Moontek, EvaCodes, Innowise Group, Infograins, ZirconTech, Tech Exactly, Chimpare, SoluLab, BitOasis, Pyypl, Zone, Gath3r, MidChains, HAYVN, DEFIYIELD, MenaPay, Light Protocol, Afriex, BitPesa, Bitsoko, BTCGhana, Luno, Ice3X, GeoPay, Dash, BitSure, Sava, Standard bank, Chankura, PayFast
Western Europe was the largest region in the financial services market in 2023. North America was the second-largest region in the financial services market. The regions covered in the financial services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the financial services market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa
The financial services market includes revenues earned by entities by providing financial or money related services such as lending, investment management, insurance, brokerages, payments, and fund transfer services. The financial services industry is categorized on the basis of the business model of the firms present in the industry, and most firms offer multiple services. Revenues include fees, interest payments, commissions, or transaction charges. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Financial Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on financial services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for financial services? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The financial services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.