Discover Financial Services

Companies // Financial Services

• Background

  This company is a constituent of the financial services sector. The financial services sector may never be the same again following the credit crunch, but as a sector its relative importance has not diminished. An advanced market economy needs an advanced and stable financial services sector. Ideas and businesses need capital to develop. Without credit, growth is retarded. The financial services industry is one of the most competitive in the world. In good times, banks and lenders fight over deals, offering very favourable terms, be it for an individual’s mortgage or a corporate merger. Banking itself can be grouped into businesses specialising in retail clients and those focusing on corporate clients. Retail banks serve individuals and small businesses, while investment banks look after the financial requirements of large corporations. Outside the banking industry, financial services covers a number of other dynamic sub-industries, including asset management firms and the companies that are dedicated to supporting businesses within the sector. Most prominent are the big securities exchanges, many of which are listed entities in their own right. Other critical support functions include advisory firms which provide brokers, economists, and tax advisors. The financial services sector is no longer the exclusive territory of banks and specialist lending companies. Supermarkets offer credit cards and car dealers provide financing solutions to go with their vehicles. One thing all financial services have in common is that they’re regulated. Watch this space: The credit crunch has taught many people and businesses that they should be the ones who take control of their finances and not just their banks or advisors. In the future consumers will ask more questions and make more of an effort to find out what is happening with their money. The financial services sector is likely to become more transparent, customer-focused and approachable as a result.

• Influencing Factors

  Institutional and private money available for investment and the accessibility of markets around the world. Other factors include regulation, the influence of governments, the strength of the larger industry sectors and competition between financial players across borders.