Financial Firms Spread January 1st, 2008
Taking advantage of industry trends over the next few years, a leading financial services research organization predicts that firms will broaden their product offerings to meet the future needs to the industry.
This will in turn mean increased opportunities for financial executives in a broad range of fields.
“Banks and investment houses have recently hired legions of pros to call on (individual investors, money center banks and large investment firms) in an attempt to provide all of their financial needs in exchange for lucrative fees,” according to Plunkett Research’s Financial Services Industry Almanac.
“Technology, cost control, consolidation and an increased consumer interest in accessing financial accounts online will drive the financial sector over the next several years. The result will be bigger firms controlling bigger chunks of global market share, driving productivity at every chance,” according to the study.
“In an ever-increasing effort to expand market share, major banks and financial firms are diversifying to offer as many financial services as possible, thereby amassing more revenue from existing clients and new clients alike,” states Plunkett.
A case in point, according to the study, is Merrill Lynch. Faced with growing competition in the brokerage and investment banking markets, Merrill Lynch has diversified its offerings to include mutual funds, asset management, financial planning, insurance, annuities, trust services, cash management accounts and mortgages.
As a result of the increased growth in the financial industry sector, two of the most competitive services are financial planning and private banking, Plunkett Research predicts.
“Individual investors, disillusioned by the market crash of the early 2000s and suddenly much less confident in their own investment prowess, have been eager to get professional help. At the same time, money center banks and large investment firms have targeted wealthy individuals with increased intensity in hopes of creating private banking relationships.” according to the study.
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