What Is Financial Services?
The financial services industry includes all roles that deal with managing and exchanging money. It encompasses everything from banking to investing to insurance, and it’s a vital part of our economy.
But what is it, exactly? Financial services can be defined as “everything that touches money,” says Ryan Duitch, chief executive officer of Arro. That includes not just banks, credit unions, and hedge funds but also debt resolution companies, global payment providers like Visa and MasterCard, and financial market utilities such as stock and derivative exchanges.
This massive sector has been in a state of flux over the past decade, thanks to consolidation and new technologies. But it’s adapting to meet evolving economic conditions and customer expectations.
One example is the growth of digital assets, such as cryptocurrencies. Another is the increased emphasis on regulation to prevent future crises. The industry is also being reshaped by consolidation, as large players acquire smaller ones to leverage economies of scale and to gain access to capital.
As the industry evolves, it will also need to rethink its business models and adapt to customer demands. This means transforming the way they connect, manage data and risk, and make decisions. It will also require them to better leverage and scale the skills of their employees, which is why many are shifting to a distributed work model where people can perform their jobs from anywhere. This will allow them to provide greater value and better serve their customers.