Providing consumers with the necessary financial tools to buy consumer goods and services is a vital function of the Financial Services industry. As one of the leading drivers of the global economy, these services enable people to purchase and use various consumer products. However, their continued success has come with challenges. The Global COVID-19 pandemic and tighter regulations have created several threats for the Financial Services industry. In this article, we discuss some of the most pressing issues facing this industry.
Financial services are a powerful economic force
It is hard to overstate the importance of financial services to the world economy. This sector represents a significant source of financial power and a major consumer of business services. According to the latest Fortune 500, there are 40 commercial banks in the world, with revenues ranging between $341 trillion and $700 trillion. The demand for financial products and services is increasing as a result of the growth of a more mature population and the growing desire for personalized financial products.
They are a driver of other industries’ success
The financial services industry represents one of the largest consumers and drivers of business in the world. In fact, the current Fortune 500 lists 40 commercial banks with revenue of $341 trillion to $700 trillion. These companies are increasingly becoming key drivers of the rest of the economy. This industry continues to expand and change to meet consumer and business needs. Here are some of the ways it is changing other industries. Listed below are some of the ways it is driving growth.
They face challenges from global COVID-19 pandemic
Banks and other financial institutions have many responsibilities when it comes to the recovery of the global economy. In times of economic uncertainty, financial institutions have an important role to play in shaping the recovery. These institutions must adjust their operating models for optimal efficiency and resiliency. This article explores how the COVID-19 pandemic will impact the financial services industry. We examine the impact on banking, consumer behavior, and the economy.
They are customer-centric
It is a given that customer-centricity is key for financial services brands. Although the customer has long been the profit centre, a growing number of brands are focusing their efforts on making the experience as customer-centric as possible. Customers no longer need to wait for endless paydays with large financial services brands – they can simply switch to a new provider. The financial services industry is an excellent example of this, with Fintech providers such as Monzo now serving over 2 million customers. Interestingly, 30% of these customers use the FinTech solution as their primary bank account.