Financial Services Market Report 2025

The financial services market size has grown strongly in recent years. It will grow from $33.77 trillion in 2024 to $36.13 trillion in 2025 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to increasing demand for fast & real-time fund transfer, rise in adoption of blockchain technology in the banking sector, rising use of digital banking services, government led insurance reforms, strong economic growth in emerging markets, rising use of cryptocurrency.

The financial services market size is expected to see strong growth in the next few years. It will grow to $47.55 trillion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to increasing wealth of high-net-worth individuals, rising demand for alternative investments, increase use of blockchain to reduce fraudulent transactions, growth in individual investors investments, increase in home ownership and mortgages, rising urbanization, increasing investments. Major trends in the forecast period include integrating smarter safety systems into financial services, implementing artificial intelligence (AI) in financial services, invest in new product launches, adopting cloud technology, deliver new capabilities, offering custom and personal services especially for wealth management.

The forecast of 7.1% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through increased operational costs for banks, as core banking system upgrades and regulatory compliance platforms, primarily sourced from India and the United Kingdom, become more expensive to implement due to higher software licensing fees. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The global payments industry has experienced a rapid surge in the adoption of EMV technology, driven by the enhanced data security provided by EMV chips and PIN cards in comparison to traditional magnetic stripe cards. EMV, a security standard for various payment cards, incorporates debit, credit, charge, and prepaid cards. The chip securely holds cardholder and account data through a combination of hardware and software security measures. As of August 2023, Thales Group reported that over 12.8 billion EMV chip cards were in circulation in 2022, marking a nearly 6% increase from 2021. This escalating trend in the payment industry contributes to the growth of the financial services market.

The expansion of new business finance models is anticipated to drive the growth of the financial services market in the future. Business expansion signifies the growth of a business to a stage where it explores additional avenues to increase profitability. Finance software plays a pivotal role in propelling the finance services industry forward by enhancing efficiency, elevating customer experience, promoting digital channel utilization, introducing innovative financial services, and reinforcing security. For example, as of May 2023, the Finance & Leasing Association (FLA) reported a 14% increase in total asset finance new business in March 2023 compared to the same month in 2022. Additionally, in Q1 2023, new business exhibited a 14% rise compared to Q1 2022. Consequently, the surge in demand for branded equipment and new commercial models is steering the growth of the asset finance software market.

Prominent companies within the financial services market are introducing innovative financial products, such as capital and accounts platforms, to deliver reliable services to their customers. The Capital and Account platform is a financial service product designed to provide users on the platform with swift and flexible cash advances, offering instant access to funds. In October 2022, Adyen, a Netherlands-based financial technology platform, unveiled its Capital and Accounts platform, allowing users to conveniently spend their funds through platform-branded payment cards. This platform is accessible in both the US and Europe. The capital product facilitates fast and flexible cash advances based on users' historical payment data, while the account product empowers users to manage their finances and access funds instantly.

Several wealth management companies are making substantial investments in big data analytics capabilities to derive insights about their clients. The implementation of big data solutions aims to provide insights into client segments, product penetration, and the effectiveness of training programs. These technologies are instrumental in evaluating clients' preferences for various products and services, determining their lifetime value, understanding investment patterns, and assessing clients' risk-taking abilities. Additionally, big data analytics assists wealth management companies in monitoring business performance, enhancing client acquisition and retention rates, boosting sales, and delivering real-time investment advice. For example, Boston-based investment firm CargoMetrics utilized the Automatic Identification System (AIS) to gather data on commodity movement, including cargo location and size. This data was leveraged to create an analytics platform for trading commodities, currencies, and equity index funds. The tool was subsequently offered to other hedge funds and wealth managers.

Major companies operating in the financial services market include Allianz, Ping An Insurance Group, Industrial and Commercial Bank of China, JPMorgan Chase & Co, AXA, China Construction Bank, Agricultural Bank of China, China Life Insurance Company, Bank of America, Generali Group, Axis Bank, Bank Of Baroda, BNL, FamPay, Federal Bank, Finin, HDFC Bank, Airwallex, American Express, ANZ, DBS Bank, ICBC Bank, WeBank, ChiantiBanca, Ant Financial, New India Assurance - General Insurance Brokers, Oriental Insurance Company, ICICI Lombard General Insurance Company, United India Insurance, Fanhua Inc, Chang'an Insurance Brokers Co., Ltd, Mintaian Insurance Surveyors & Loss Adjusters Group Co., Ltd, Shenzhen Huakang Insurance Agency Co. Ltd, CPIC, China Property and Casualty Reinsurance Company Ltd, PICC Reinsurance Co. Ltd, Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, RBS Group, Caixa Geral De Depositos, La Banque Postale, Cofidis, Hello bank!, BNP Paribas, Santander, Marsh & McLennan Companies UK Limited, Arthur J Gallagher & Co, Willis Towers Watson plc, Aon Holding Deutschland GmbH, Funk Gruppe GmbH, Ecclesia Holding GmbH, Hannover Re, Munich Re, Swiss Re, Crédit Agricole Assurances, CNP Assurance, Société Générale, Deutsche Bank, Sberbank, TKB Investment Partners (JSC), Alfa Capital, RSHB Asset Management, UFG Asset Management, PZU Group, Aviva Investors Poland, Ipopema, BT Asset Management SAI, Prudential, Lincoln National, MassMutual, John Hancock, Transamerica, Manulife Financial, Chubb Life, Great-West Lifeco, Inc, Sun Life Financial, IA Financial Group, Fairfax Financial Holdings Ltd, Northwestern Mutual, New York Life, BlackRock, Vanaguard, State Street Global Advisors, Fidelity Investments, Berkshire Hathaway Re, Elevance Health, Capital Group, Bank Of New York Mellon, PIMCO, Goldman Sachs, PGIM, TD Asset Management, Brookfield, RBC Global Asset Management, BMO Global Asset Management, Companhia de seguros alliance do Brazil, Bradesco Vida E Previdencia S.A, AR LIFE, Moontek, EvaCodes, Innowise Group, Infograins, ZirconTech, Tech Exactly, Chimpare, SoluLab, BitOasis, Pyypl, Zone, Gath3r, MidChains, HAYVN, DEFIYIELD, MenaPay, Light Protocol, Afriex, BitPesa, Bitsoko, BTCGhana, Luno, Ice3X, GeoPay, Dash, BitSure, Sava, Standard bank, Chankura, PayFast.

Western Europe was the largest region in the financial services market in 2024. North America was the second-largest region in the financial services market. The regions covered in the financial services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the financial services market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The financial services market includes revenues earned by entities by providing financial or money related services such as lending, investment management, insurance, brokerages, payments, and fund transfer services. The financial services industry is categorized on the basis of the business model of the firms present in the industry, and most firms offer multiple services. Revenues include fees, interest payments, commissions, or transaction charges. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.

Financial services encompass products and offerings provided by financial institutions to facilitate diverse financial transactions and activities, including loans, insurance, credit cards, investment opportunities, and money management.

The primary categories of financial services include lending and payments, insurance, reinsurance, insurance brokerage, investments, and foreign exchange services. In the lending and payments market, financial institutions extend funds and make them accessible to individuals, small- and medium-sized businesses, as well as large corporations. These services cater to the needs of individuals, corporations, governments, and investment institutions.

The financial services research report is one of a series of new reports that provides financial services statistics, including financial services industry global market size, regional shares, competitors with financial services share, detailed financial services segments, market trends and opportunities, and any further data you may need to thrive in the financial services industry. This financial services research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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