Learning The Trends Today’s Financial Services Industry

The economic crisis in different areas of the world today is truly inevitable. As these troubles arise, the financial services industry is facing a great challenge and whole lot of other problems. The said crises starts in certain imbalances like long periods of low interest rates, fast increasing asset prices as well as a huge credit and savings problems. Certain reports from the great institutions like World Economic Forum have cited the future of these changes and considered them to be a huge risk in the world market.

In the early years, growth and capitalism were at their best which resulted to today’s market’s ability to work into a much tighter credit which further added by the intervention of the government. As a result, it slows the pace of globalization and at times, economic growth goes into a halt. USA in particular have been increasing its regulatory laws which is leading to a drop of availability of credit, these days, this strong country faces a huge challenge and shunted economic growth. More than that, global recession is also hitting the financial services industry because of capital markets and a decrease of aggregate demand.

As time changes, we now have certain trends that are blooming the world of financing. These may be used as one of the key tools in your financial planning approach. One would be global banking.  World Bank says there are American banks that are operating in other countries; they are more leaning on to the US. For growth to actually happen, finance industry should really go into the fast emerging markets like the ones in Africa and Asia.

Second would be IT platform sharing. Financial services’ strategies should be changed to make it more dynamic and in tuned with today’s increasing market. An immediate need to access information as well as integration of product lines and geography is now a need for success. For a business to grow; it must provide a lot of information to the global market and companies must also tone down their costs. The good thing is that there are solutions to make these things possible and that’s by using the term platform sharing. Cell phone companies may collaborate with other local companies which will lead to a decreased cost but in exchange a quick access to any information. Financial services can also do the same.

Another would be e-banking. The Economist made a special report that 3.5 billion people who own cell phones are expected to have a 10 to 20% yearly growth. Now, personal and business transactions are made through these gadgets and even more. E-banking is now quickly becoming more of a requirement to make your place in today’s market. And last would be the use of mobile money. With the increase of mobile phone use, mobile money has proven itself to be safe and low cost initiative for those who are in the financial sector. It just makes things easier, transferring money, payments, withdrawals and more can be done without even going to actual banks.

The times have changed and it will continue to change. Soon there will be new trends but now these are the things that make our lives a lot easier.