Financial Services - Industry - Global Market, Share and Trends 2023-2028

Summary of Financial Services

As the financial system continues to evolve rapidly with technological disruption, this report analyzes the key trends impacting the strategic direction of the global financial services industry. Drawing on data from leading industry sources, we examine shifts in consumer preferences, regulatory changes, competitive threats and opportunities across business lines. By evaluating and understanding the changing landscape and implications within the financial services segment, industries and businesses can set-up sustainable financial goals for their long-term growth strategies.

The past year saw unprecedented acceleration in the digitization of financial services. Lockdowns and social distancing norms drove consumers online for their banking needs like never before. Our data backed research indicate that over 66-70% of consumers opened new accounts or onboarded for existing services digitally in the past few years– in comparison to– less than 50% in the prior two years (2020). This surge in digital adoption compelled traditional banks and insurers to fast track their investments in online and mobile platforms to meet evolving customer expectations.

It also presented new opportunities for FinTech startups focused on digital customer experiences. Other data and market intelligence reports show record global FinTech funding of over $120 billion in 2021, signaling growing investor appetite for innovations in digital payments, wealthtech, insurtech and other segments that challenge the status quo. The global financial services market size grew from $13,400 billion in 2023 to $22,283.33 billion in 2029 at a compound annual growth rate (CAGR) of 8.56%.

Recent Trends and Insights

Online account openings grew by over 30% in the last year. This indicates increasing consumer comfort with digital banking and financial management tools.

Financial technology (“Fintech”) startups globally raised a record $120 billion in venture capital funding in 2021. This underscores growing investor appetite for innovations in digital payments, wealthtech, insurtech and other business lines that challenge traditional models.

Regulators in major jurisdictions proposed new rules around open banking, data privacy and digital lending practices aimed at fostering competition and inclusion. For instance, the European Union advanced proposals to allow consumer data sharing between financial institutions.

Cryptocurrency trading volumes skyrocketed over the past year, though prices saw volatility. Central banks also accelerated research into developing digital currencies of their own according to our analysis.

Product Insights

Digital-first banking solutions are gaining prominence as more consumers adopt online and mobile platforms for everyday financial tasks. Leading banks are differentiating through personalized interfaces, value-added services and seamless omnichannel experiences.

Wealth and asset management is seeing growth of robo-advisors and automated investment tools that offer lower costs and minimums compared to traditional models. Companies like Betterment and Wealthfront have millions of clients.

Insurtech is an area of significant innovation, with new entrants offering usage-based pricing, on-demand coverage and streamlined claims through mobile apps and AI-based risk assessment. This is challenging traditional insurance business models.

Cryptocurrency and blockchain technology continue to attract interest from financial institutions as they explore applications for settlement, payments and digital asset management. However– widespread commercialization faces ongoing technical and regulatory hurdles.

Key Companies

Some major players within this vast domain of industry are

• Bank of China
• AXA
• Commonwealth Bank of Australia
• Industrial and Commercial Bank of China
• UnitedHealth Group Inc.
• Agricultural Bank of China
• Hana Bank
• Fidor Bank
• HDB Financial Services Ltd.
• Infosys Ltd.
• International Business Machines Corp.

Regional Analysis

The North American renewable energy market is experiencing significant growth. Other countries within this region are expected to dominate the North America renewable energy market, with a focus on increasing its contribution to the global renewable energy market by up to 30% by 2025.

The North American Renewable Integration Study suggests that between 1,200 and 2,000 gigawatts of renewable energy can be deployed in the United States to produce 70%–80% of U.S. electricity by 2050.

The Asia-Pacific region is making significant strides in renewable energy development. The region’s renewable energy capacity is expected to grow substantially, with some regions having almost 175 GW of installed renewable energy capacity and others having the potential for almost 337 GW for solar PV alone.

The region’s transition to renewable energy is crucial– given that Asia and the Pacific account for more than 50% of global CO2 emissions– with more than half coming from electricity and heat.

The Middle East and Africa region is experiencing significant growth in the fintech sector. Many countries within this region are investing heavily in fintech to diversify their economies and create jobs.

The MENAP fintech ecosystem is becoming geographically diverse– with the number of firms scaling in these markets growing rapidly. The region’s fintech sector has increased financial inclusion, a key economic growth enabler and accelerator.

Market Segmentation

By Type:

• Ecommerce platforms and mobile apps
• AI-powered product recommendations and personalized shopping
• AR/VR for virtual try-ons and interactive displays
• IoT solutions for supply chain and inventory management

By End User:

• Retail chains, franchise brands
• Grocery stores and supermarkets
• Direct-to-consumer brands
• Online marketplaces

By Enterprise Size:

• Large retailers
• Small and mid-sized stores
• D2C startups

By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Our Methodology

We have offered a well-founded review of the global financial service market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.