Segments

Accounting and Tax Preparation

This segment is comprised as services such as auditing accounting records, designing accounting systems, preparing financial statements, developing budgets, preparing tax returns, bookkeeping, billing, and processing payrolls.

Asset Management

In this segment, companies manage the financial assets of corporate, institutional, and individual clients. Their main services include portfolio management and investment advice.

Banking

Companies in this segment accept deposits and make commercial, industrial, and consumer loans.

Insurance

Companies in this segment act as agents to sell insurance policies and annuities underwritten by insurance carriers.

Private Equity

Private equity is a class of assets that consists of equity securities and debt in companies that do not publicly trade on a stock exchange. These types of investments are typically made by private equity firms, venture capital firms, or angel investors.

Venture Capital

Companies in this industry invest capital in new business ventures. These companies provide money to new, rapidly growing companies with new products or services that appear to be promising in exchange for equity in the company.

The Financial Services industry is Fragmented. The production in this industry is divided among a few different companies, however, no single firm has large enough share of the market to be able to influence the industry's direction or price levels.


Primary Demand Drivers

  • Consumer income
  • Wealth
  • Demographics

Profitability Drivers

  • Effective marketing

From the Blog Blog RSS

Earlier this week, Fidelity National Information Services Inc. (FIS) announced their agreement to acquire fellow global payments company Worldpay in a deal valued at $35 billion in cash and stock. The combined company will become a one-stop shop to process online and in-store payments and manage multiple currency transactions. Management is hoping the combined larger company will be able to reach more customers in an increasingly online industry, while also recognizing around $400 million in cost synergies.

The London Inter-bank Offered Rate (LIBOR) is an interest rate benchmark that is used to set the interest rate on hundreds of trillions of dollars in debt around the world. The LIBOR rates are set via a consensus mechanism whereby the world’s leading banks submit the interest rate at which they believe they could borrow funds from another bank. The LIBOR rate is set for seven different maturities, ranging from one week to one year, with the most commonly quoted rate being the three-month U.S. dollar rate, which is known as the “current LIBOR rate”.

Sources

  1. SelectUSA (Date Accessed: 6/1/2017)