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Global Trends For the Financial Service Industry

The financial services sector is facing significant challenges as the global crisis continues to unfold. Continuous imbalances, such as long stretches of low interest rates, increasingly rising asset prices, and large credit and savings imbalances, are at the root of the crisis. The World Economic Forum’s 2007 and 2008 reports forecast that these developments will continue to be a market challenge. Do you want to learn more? Visit E.A. Buck Financial Services

Earlier decades of exceptional growth and capitalism at its best have forced the economy to adjust to tighter credit, increased government interference, slowed globalisation, and no economic growth. The industry faces a serious risk of stunted growth as regulations in the United States become more stringent and credit becomes more scarce. According to Max von Bismarck, Director and Head of Investor Industries, the global recession is impacting the financial sector due to capital markets and reduced aggregate demand.

This article will provide financial service industry executives, staff, and investors with five specific and timely developments to bear in mind as they plan their growth strategies for the next five years. These five main developments will have a holistic and systematic effect on the post-financial-crisis world.

GLOBAL BANKING’S FIVE Main TRENDS While several banks, such as American Express, Citibank, and JPMorgan Chase, do business in several countries, according to the World Bank, they are mostly regional in the United States. The financial sector would need to penetrate emerging markets in order to expand. For businesses with a more ambitious growth plan, expanding into developing markets like Africa and Asia offers unrivalled profit and market share opportunities.

SHARING OF AN INFORMATION TECHNOLOGY PLATFORM. According to Network World, financial service firms’ business strategies must be adjusted to account for the new dynamics and complexities of today’s sector. For future success, immediate access to knowledge and integration across product lines and geographies are essential. Firms must reduce costs in order to sell information to a global market. Platform sharing is one cost-effective initiative; similar to how mobile phone providers partner with local businesses to reduce costs and expand connectivity, financial institutions may do the same.