The Future of Financial Services
Financial services are a massive industry that encompasses everything from banking to investing to credit cards. They provide the means for individuals to obtain loans for mortgages, college funds, cars, and other needs. They also help individuals save for retirement and other goals and safeguard their property and health through insurance policies. Additionally, a healthy financial services sector employs millions of people around the world.
It wasn’t always this way, though. In the past, each segment of the financial services industry more or less stuck to its own specialty. Banks offered checking and savings accounts. Loan associations offered personal and mortgage loans. Brokerage companies offered investment opportunities in stocks and mutual funds. And credit card companies solely provided credit cards.
However, starting in the 1990s, the lines between these sectors began to blur. The Gramm-Leach-Bliley Act and other deregulations allowed banks to offer more than just deposit accounts; they could now offer investment, commercial, and consumer banking. This allowed companies to become financial conglomerates and helped fuel the home buying craze in the 1990s as well as the stock market boom.
As we continue to move into a more global and digital economy, the demand for financial services will only grow. To survive and thrive in this new world, financial services firms will need to reimagine how they amplify, catalyze, and connect their products and services to meet evolving customer needs. Moreover, they will need to balance this with an appropriate level of regulation to keep consumers’ money and rights protected.