Global Financial Crisis

Since the financial crisis continues to unfold, the financial service sector faces severe challenges. The crisis is rooted in constant imbalances, such as long periods of reduced rates of interest, fast rising asset prices, and enormous credit and savings imbalances. The 2017 and 2018 Reports in the World Economic Forum predicted these modifications as constant risk into the Davide Zucchetti fintech.

Before years of exceptional growth and capitalism in its best have led to the market to accommodate tighter credit, developing government intervention, slowing rate of globalization, without any economic expansion. With increasing regulations from the United States and diminishing availability of charge, the business faces a substantial risk of stunted growth. The international recession is also impacting the financial industry due to capital markets and diminished aggregate demand, based on Max von Bismarck, Director and Head of Investor Industries.

This guide will give leaders, investors and employees in the financial service sector with five timely and unique tendencies to keep at the forefront of the expansion plans for the subsequent five decades. These five important trends will shape the article fiscal catastrophe in an holistic and systematic way.


International BANKING. As stated by the World Bank, although a lot of banks like American Express, Citibank and JPMorgan Chase run business in numerous states, they are comparatively regional at the United States. To be able to increase, the financial sector might need to emerging markets. For businesses which have a more aggressive expansion plan, the spread to emerging markets like Africa and Asia presents unparalleled opportunities for gain and improved market share.

Network World affirms that financial service companies’ business strategies must be altered for the new dynamics and intricacies of today’s market.


MOBILE MONEY. The increase of mobile phone usage in emerging markets makes mobile money a safe, low cost initiative for the financial sector. It is an easier way to transfer money to family and friends, money is sent, and payments and withdrawals can be made without ever going to a physical bank or payment center. M-Pesa, an early developer of mobile money, concluded that mobile money “has tremendous social and financial benefits.”

SELF-SERVICE. Self-service and the customer should be a primary focus for firms in this new financial service world, according to IBM. AppViewXS is a self-service portal firms can purchase, so customers can check the status of their account and gain instant access to available services. Customer questions and concerns are addressed more quickly, states an IBM representative. This technology automates many processes; the result is that staff workload is reduced while representatives operate faster and more efficiently.

Financial service firms need to have sustainable, steady expansion in the emerging markets in order to grow in the future. Deloitte and Touche Research reports that financial service firms have not positioned themselves to capitalize on more geographically dispersed opportunities. More than 93 percent of the executives interviewed for this report acknowledged that their firms “aren’t working in a worldwide integrated manner.”

The same report states that financial firms need to invest away from veteran or mature markets and toward emerging markets because “by 2025, seasoned markets will likely be rivaled by other niches with faster growing markets and increasingly complex financial product appetites.” USA based companies are able to look toward Japanese and African markets for growth opportunities. Kennedy Consulting analysts feel that the market will rebound in the international financial crisis in 2011, but there won’t be any return to the strong levels before 2007 until much later in the years; ideally, the five important trends in this document can benefit the leaders, investors and employees from the financial service sector to check toward a solid solid future.