Financial Services Industry Report
Financial Services Industry
The financial services industry plays a vital role in everyday functions in society as well as the global economy. Financial institutions are defined as those institutions that act as an agent who provides financial services for its clients (Wikipedia, 2006). They provide a service of moving funds for its investors. These institutions include banks, credit unions, insurance and trust companies, and finance and investing companies. Financial institutions such as these help handle society its day-to-day financial activities.
Upcoming Changes within the Financial Services Industry
With the continued growth of technology, e-commerce, and a fierce competitive market, the financial services industry throughout the years has been forced to keep up with the things that would keep their business top of the line. Some of the changes that are likely to occur over the next decade in the financial services industry include more banking and investing will be handled strictly by online transactions, more companies will become completely paperless, a rise in the demand for more efficient resources and products, and more companies will merge to form stronger organizations that Barry Lynn (2006) calls “global mega-institutions.”
Take for example, the recent merger of BlackRock and Merrill Lynch Investment Managers. These two investment management companies announced February 2006 that they would combine forces in order to tackle the economy and globalization. Laurence Fink, Chairman and CEO of BlackRock reported, “Merrill Lynch Investment Managers (MLIM), and BlackRock to create a new independent company that will be one of the world's largest asset management firms with nearly $1 trillion in assets under management” (2006). Many organizations like these are joining together to create a stronger global force in the economy. One of the reason BlackRock and Merrill Lynch agreed to merge was because they...