Market Size & Growth:

The global financial services market size was valued at $1,045.6 billion in 2020 and is expected to grow at a CAGR of 4.8% from 2021 to 2028.The global financial services market size is expected to reach $37.5 trillion in 2027 at a CAGR of 7.5%. The US financial services industry includes about 6,000 establishments (single-location firms and units of multi-location firms) with combined annual revenue of about $1.2 trillion. The financial services market size was valued at $21237.64 Bn in 2022 and is projected to reach $41368.44 Bn by 2030, growing at a CAGR of 7.69%.

Market Drivers & Challenges:

The financial services industry is highly competitive, and financial institutions must compete in several ways to gain a share of the market size. The financial services industry is also facing challenges related to supply chain constraints, market volatility, and labor pressures. Most firms have been investing heavily shifting most back-office functions to other countries to drive down costs in a tight expense environment. Financial institutions are also facing challenges related to the rise of alternative financial service providers (AFSPs) and disruptive technologies such as financial technology (fintech) and artificial intelligence (AI). The financial services industry is also facing challenges related to regulatory change and environmental, social, and governance initiatives (ESG).

Key Players:

The financial services industry involves many parties working together, including banks, credit unions, insurance companies, investment firms, and fintech companies. Some of the key players in the industry include:

Banks: JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman -  Sachs

Insurance Companies: Berkshire Hathaway, Allianz, AXA, Ping An Insurance, Prudential Financial

Investment Firms: BlackRock, Vanguard, State Street Global Advisors, Fidelity Investments, Capital Group

Fintech Companies: PayPal, Square, Stripe, Robinhood, Coinbase

Outlook:

The financial services industry is expected to continue growing, with theglobal financial services market size expected to grow at a CAGR of 4.8% from 2021 to 2028. The industry is constantly being reshaped by disruptive technologies such as fintech and AI. Financial institutions must compete in several ways to gain a share of the market size, including providing first-rate customer service and an integrated financial experience. The financial services industry is also expected to play a major role in helping to re-establish economic stability, with partnerships between traditional institutions and fintechs being the key to success. The financial services industry is also expected to face challenges related to regulatory change and environmental, social, and governance initiatives (ESG). The conditions most likely to play out over the next few months—the combination of high interest rates, greater regulation, and a more challenging macroeconomic environment—will require financial institutions to be nimble and adaptable.