Global Financial Industry Report

The financial services market grew at a compound annual growth rate (CAGR) of 7.7%, from $31.1 trillion in 2023 to $33.5 trillion in 2024. The industry is forecast to grow at a CAGR of 7.6% to reach $44.9 trillion in 2028.

Market Segmentation

The main segments of the financial industry include:

• Lending and payments
• Insurance and reinsurance
• Insurance brokerage
• Investments
• Foreign exchange services

By end-user, the market is segmented by:

• Individuals
• Corporates
• Governments
• Investment Institutions

Key Market Trends & Drivers

Looking ahead to 2025, the role of technology in the financial industry will be more at the forefront than ever.

The banking sector remains resilient in a climate of volatility and ongoing changes. This means that traditional banking will likely transform significantly as competition gets tighter, new technologies emerge, and consumers' expectations rise. As a result, there are several areas to keep an eye on in the financial sector.

The recent and historical growth can be attributed to the growing demand for rapid and real-time fund transfers, surging use of blockchain technology in the banking sector, the increasing adoption of digital banking services, government-initiated insurance reforms, ongoing economic expansion in emerging markets, and a higher prevalence of cryptocurrency usage.

Your Business, Our Expertise – A Winning Combination.

Many wealth management companies are heavily investing in big data analytics capabilities to gain insights into areas such as:

• Client preferences
• Product and service demand
• Effectiveness of training programs
• Monitoring of business performance
• Improving client acquisition and retention
• Boosting sales
• Delivering real-time investment advice

Open banking, which refers to open application program interfaces (APIs), is more frequently implemented to allow third-party developers to build applications and services around financial institutions’ systems. This standardized and secure technology promotes better transparency and accessibility by sharing data safely with customers’ permission. 

Artificial intelligence (AI) is also being widely used in the financial sector in several capacities, such as:

• Analyzing customer behavior patterns
• Enhancing customer service quality
• Improving risk management
• Boosting security
• Streamlining operations
• Shoring up fraud detection and prevention measures
• Forecasting revenue and predicting stock prices
• Understanding how Millennials use and purchase financial products

In the realm of global payments, there has been significant growth in the use of EMV technology. EMV stands for Europay, Mastercard, and Visa. It uses a small chip embedded in credit and debit cards to make card transactions more secure than traditional magnetic stripe cards.

There is also ongoing investment in new product launches to broaden financial service companies’ product portfolios to boost their market share. This includes adopting cloud technology, introducing new capabilities, and personalized and customized services in wealth management.

M&A

The financial industry is poised for a significant surge in M&A transactions across various sectors. Interest rates continue to decline, credit spreads are tighter, there is the capacity for enhanced leverage that translates to higher multiples, and a merger-friendly regulatory climate is anticipated.

While macroeconomic and geopolitical uncertainties will keep bank executives vigilant, there are numerous areas for optimism. Higher deposit costs are expected to keep net interest income manageable. Non-interest income could present opportunities for topline growth, and credit quality is anticipated to remain historically strong.

Our Recent Success Stories in the Sector

Some of Benchmark International’s more recent successful deals in the transportation space include:

• The transaction between Silexx Financial Systems, LLC and the Chicago Board Options Exchange (CBOE)
• The acquisition of Michael Robb Accountancy and Taxation Services LTD by JM Taylor Accountants & Business Consultants
• The sale of ProStar Adjusting to Team One
• The acquisition of Mabra Management, LLC by Biltmore Insurance
• The transaction between Accountants and Business Advisors, LLC and the Accounting Lab Group, LLC
• The sale of George W. Evans & Associates, Inc. to Nationwide Brokerage Solutions Insurance Agency, Inc.
• The acquisition of Integrity 1st, Inc. by OneDigital, which won an M&A Atlas Award for Private Equity Add-on Deal of the Year

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