Financial Services

The financial services industry is a cornerstone of the global economy, driving growth, facilitating commerce, and supporting individuals, businesses, and governments through a diverse range of products and services.

OVERVIEW

Financial Services Industry Overview

Recent data highlights the scale and significance of the financial services sector, particularly in the United States.

7.3%

GDP Contribution

In 2023, finance and insurance represented 7.3% of U.S. gross domestic product, reflecting the sector’s vital economic role.[^1]

6.7M

Sector Employment

The U.S. financial services and insurance sectors employ more than 6.7 million people as of mid-2024.[^1]

$175B

US Exports

The U.S. exported $175.5 billion in financial services and $25.0 billion in insurance services in 2023, underscoring the country’s global leadership.[^1]

$573B

Total FDI in Industry

Total foreign direct investment in the U.S. financial services industry reached $573.8 billion in 2023.[^1]

1.)SelectUSA: Financial Services Industry

KEY SECTORS

Key Sectors in Financial Services

The industry is composed of several interrelated sectors, each serving distinct but overlapping functions.

Banking and Credit Unions

Banks and credit unions are foundational to the industry, providing deposit accounts, loans, payment services, and credit products to consumers and businesses. The U.S. banking sector alone supports over 1.7 million jobs and manages a vast array of assets.

Asset and Wealth Management

This sector encompasses investment managers, mutual funds, pension funds, and wealth management firms. U.S. retirement assets, for example, totaled $38 trillion at year-end 2023, making up over 70% of the OECD total

Insurance

Insurance companies provide risk management solutions for individuals and organizations, covering life, health, property, and casualty risks. In 2023, U.S. direct insurance premiums reached $1.9 trillion, with the industry employing over 3 million people.

Investment Banking and Brokerage

Investment banks and brokerage firms facilitate capital raising, mergers and acquisitions, securities trading, and advisory services for corporate and institutional clients.

Private Equity and Venture Capital

These sectors provide capital to private companies, supporting innovation and entrepreneurship. U.S. private equity firms employ over 500,000 workers directly, while venture capital supports high-growth startups and research and development

Financial Advisory, Tax, and Accounting Services

Financial advisors, accountants, and tax professionals help individuals and businesses manage finances, plan for retirement, and navigate complex tax regulations

MAJOR DRIVERS

Major Drivers Behind the Transformation

Key drivers behind the transformation in financial services include technological innovation, regulatory changes, and shifting customer expectations.

Digital Transformation and Fintech

The proliferation of digital banking, mobile payments, and fintech platforms is redefining how consumers access and interact with financial products. Traditional institutions are investing in technology to compete with agile newcomers and to meet rising customer expectations for speed, convenience, and personalization

Regulatory and Compliance Evolution

Regulators worldwide are enacting new rules to strengthen consumer protection, enhance transparency, and ensure financial stability. Firms must remain agile and proactive in adapting to evolving regulatory requirements.

Cybersecurity and Risk Management

As financial services become more digital, the risk of cyberattacks has grown. Institutions must invest in advanced security measures and risk management frameworks to safeguard assets and maintain customer trust

Sustainability and ESG

Investors and consumers are increasingly demanding that financial institutions prioritize sustainability and responsible business practices. ESG investing and green finance are becoming mainstream, influencing product development and capital allocation.

DYNAMICS

Challenges and Opportunities

The media and entertainment industry is rapidly changing, presenting new challenges that redefine how content is created and delivered. Companies must innovate to keep up with evolving consumer demands and digital technologies.

Challenges

Innovation and Compliance

Balancing innovation with regulatory compliance and risk management.

Legacy-Digital Integration

Integrating legacy systems with new digital platforms.

Cybersecurity and Privacy

Addressing cybersecurity threats and data privacy concerns.

Opportunities

Enhancing Tech Reach

Leveraging technology to enhance efficiency, customer experience, and reach.

New Financial Products

Expanding into underserved markets and developing new financial products.

ESG and Sustainability

Embracing ESG and sustainability to attract capital and build trust.

Join the Conversation on LinkedIn

Stay informed and never miss out on valuable insights. Subscribe today to access in-depth content, updates, and exclusive resources tailored just for you!

Follow Our Page

OUR SOLUTIONS

Unlocking Opportunities for Media and Entertainment

To help media and entertainment companies thrive amid industry transformation, we offer a portfolio of innovative solutions tailored to address today’s most pressing challenges and unlock new opportunities for growth.

Digital Banking Transformation

Drive the evolution of banking by leveraging digital platforms, automation, and AI to create seamless, personalized experiences for customers. Modernize legacy systems, launch new digital products, and enable secure, real-time transactions to meet rising consumer expectations.

Next-Generation Insurance Solutions

Reimagine insurance offerings by integrating advanced analytics, digital claims processing, and personalized coverage options. Empower customers to protect what matters most through intuitive, tech-enabled solutions that enhance transparency and trust.

Capital Markets Innovation

Accelerate growth and resilience in capital markets by deploying digital trading tools, data-driven investment strategies, and real-time risk analytics. Facilitate efficient capital raising, trading, and portfolio management for institutional and retail clients alike.

Fintech Collaboration and Enablement

Bridge the gap between traditional financial institutions and fintech disruptors. Foster partnerships, open banking initiatives, and API-driven innovation to deliver new products, expand market reach, and unlock cost efficiencies.

Financial Crime Prevention and Compliance

Strengthen compliance and risk management frameworks with advanced monitoring, AI-powered fraud detection, and automated reporting. Enhance transparency, reduce operational risk, and ensure regulatory adherence in an increasingly complex environment.

ESG and Sustainable Finance Solutions

Integrate environmental, social, and governance (ESG) criteria into financial products and investment strategies. Offer green finance options, responsible investing tools, and transparent reporting to meet the growing demand for sustainable business practices.

Customer-Centric Advisory and Wealth Management

Deliver holistic financial advice and wealth management services powered by digital platforms, data analytics, and personalized planning. Help clients achieve their financial goals with tailored solutions that adapt to changing life stages and market conditions.

Cybersecurity and Data Protection

Safeguard customer assets and sensitive information by implementing robust cybersecurity measures, continuous monitoring, and rapid incident response protocols. Build trust by prioritizing data privacy and resilience against evolving digital threats.

OUR RESOURCES

Transforming Insights into Impact

See Us in Action

Research Project

Elevate Business with a platform strategy

Research Project

Elevate Business with a platform strategy

Learn how we implemented AI to drive personalized recommendations and increase sales.

Article

Banking on Happy Customers

Article

Banking on Happy Customers

Discover how we helped a major corporation migrate their legacy systems to the cloud.

Research Project

Reinvention in the age of generative AI

Research Project

Reinvention in the age of generative AI

Explore our innovative use of blockchain technology to enhance supply chain management.

E-book

Final retool for growth

E-book

Final retool for growth

See how we implemented IoT solutions to transform urban infrastructure and improve city living.

Let us help you navigate the path forward!

We're a global eCommerce development agency specializing in B2B growth and digital transformation for industries like manufacturing, retail, and healthcare. With cutting-edge strategy, design, automation, and support, we turn complexity into opportunity, helping businesses thrive and lead in a competitive world.