The U.S.’s financial services industry is expected to grow even more the preceding years, along with the rest of the world’s, and it’s been recovering well from the COVID-19 pandemic.The employment rates in the industry are very low, less than 3%, making it very competitive. Nonetheless, a more skilled and developed workforce is always needed. Among the top players in the american market, and globally also are: Berkshire Hathaway Inc, Visa Inc., JPMorgan Chase & Co., Mastercard Incorporated, Bank of America Corporation, Wells Fargo & Company.
The traditional financial sector faces a lot of challenges lately. Even though the majority of the population is still transacting with the traditional methods, the technological advancements and new competitors that arise from this technological revolution, make traditionally strong players rethink their strategy. In addition, as an industry that relies heavily on technology to handle sensitive material and interact with its customers, it’s going to be vital that financial services companies keep their technology updated and protect themselves from cyberattacks.
Over the past decade, the traditional finance sector has been disrupted by newly founded and revolutionary financial start-ups, which with their out-of-the-box ideas and innovative technology changed the financial landscape once and for all. In the beginning, the financial institutions saw these new players with great skepticism and competitiveness. Though their relationship is still difficult and complicated, everyday we see more and more collaborations between fin-tech companies and well-established financial institutions to take place.
It is very important for the traditional players to understand that the inclusion of new technology can be deployed to add value and create superior customer experiences. In order for them to survive in this highly competitive market it is crucial to keep up with these fast paced companies and be more flexible. On the other hand, the fin-tech companies have to create more realistic benchmarks and to align with practical and real world challenges,as they have the tendency to get carried away by their creativity. There are many cases where fin-tech start-ups did not survive because of their non-practical products and overcomplicated offerings.