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FINANCIAL SERVICES SECTOR
Home > Industry Coverage > Financial Services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises.
We work with companies involved in all types of financial services.
Funding is drying up. Equity values are becoming ever more volatile. Demand for financial products and services are falling back amid an accelerating slowdown in the global economy and dip in business and consumer confidence. Organizations will need to demonstrate thorough understanding and control of their risks to rebuild investor confidence, attract funding and stabilize their businesses in the short term. Going forward, many may need to transform their business models and associated performance objectives and incentives as part of a more sustainable long-term approach to value creation.
While demanding, the current market environment could open up valuable opportunities for growth. Strongly capitalized groups are in a favorable position to pursue ambitious acquisition and business development strategies. Firms that can effectively manage costs and enhance understanding of individual customers' evolving needs will be able to build enduring and profitable client relationships. Emerging markets and alternative investment sectors also continue to offer significant potential for expansion. We offer services centered around: (1) Governance & risk management; (2) Market reporting; and (3) Regulation & compliance.
We also interact and interface with partners and companies involved in:
- Private equity - Private equity funds are typically closed-end funds, which usually take controlling equity stakes in businesses that are either private, or taken private once acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in which they invest. The most successful private equity funds can generate returns significantly higher than provided by the equity markets.
- Venture capital - Venture capital is a type of private equity capital typically provided by professional, outside investors to new, high-potential-growth companies in the interest of taking the company to an IPO or trade sale of the business.
- Angel investments - An angel investor or angel (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.
- Conglomerates - A financial services conglomerate is a financial services firm that is active in more than one sector of the financial services market e.g. life insurance, general insurance, health insurance, asset management, retail banking, wholesale banking, investment banking, etc. A key rationale for the existence of such businesses is the existence of diversification benefits that are present when different types of businesses are aggregated i.e. bad things don't always happen at the same time. As a consequence, economic capital for a conglomerate is usually substantially less than economic capital is for the sum of its parts.
