Financial Services

The financial services market is transforming rapidly as digital adoption accelerates across IT and telecom. Digital payments now account for nearly 40% of the market, driven by rising digital and mobile banking, fintech adoption, and changing credit versus debit card usage. Asia-Pacific, led by India and China, posts the highest CAGR of 8.5%, while North America and Europe maintain strong revenues, reflecting the sector’s significant contribution to GDP.

Demand patterns of the financial services market are shifting with stronger financial inclusion rates, rising insurance penetration, and expanding wealth management demand as consumers diversify toward savings, deposit trends, and retirement planning adoption. Mortgage demand and approval rates are also rising, especially in emerging markets. At the same time, cross-border payments volume is increasing, with exports up 7% and imports 8.5%, though varying financial regulations such as KYC, AML, and Basel III compliance create operational challenges. Competition is intensifying as global players like JPMorgan Chase, Goldman Sachs, and HSBC face fintech challengers such as Paytm, PhonePe, and Revolut, who leverage AI in banking, blockchain in financial services, and robo-advisors to reshape offerings.

The financial services sector’s future lies in open banking adoption, CBDC developments, and digital currencies, while cybersecurity spending in the financial sector rises to protect transactions. Growth in embedded finance, green finance, and quantum-ready architecture will redefine trust, while capital adequacy ratios and non-performing loan (NPL) ratios remain vital for stability. With governments driving inclusion and enterprises investing in regtech and ESG-linked finance, the industry is positioned as a strategic driver of long-term competitiveness and global digital transformation."