Hold tight! Financial services set to grow to $37.5 trillion by 2027

Hold tight! Financial services set to grow to $37.5 trillion by 2027
Substantial global growth of 7.5% CAGR is anticipated in a new report.
SEP 05, 2023

The financial services sector is set for substantial growth in the next few years as several factors converge.

The global market is anticipated to reach more than US$37.5 trillion dollars by 2027 at a compound annual growth rate (CAGR) of 7.5% according to the latest report from The Business Research Company.

Evolving consumer needs, technological advancements, and regulatory changes are among the key drivers of this growth with several markets expected to see notable growth in the coming years.

Open banking is evolving at different rates around the world, but this is seen as one of the major growth factors with a market estimated to be worth more than $62 billion by 2027. A growth rate of almost 27% (CAGR) will be aided by increasing adoption of online payment platforms.

Contactless payments demand is also boosting the smart card market towards a $27.5 billion market.

Meanwhile the B2B payments market is also set for significant growth (9% CAGR) to more than $1 trillion as global trade escalates.

P2P LENDING

Peer-to-peer lending is another industry set for significant growth thanks to technology such as decentralized P2P mobile browsers that allow users to sidestep any internet censorship and enables people to access and share information in and across regions where connectivity has been interrupted or compromised.

One of the companies leading this technology is Montreal-based eQualitie which recently launched what it claims is the world’s first decentralized mobile P2P browser called Ceno. The firm says that it is currently being used by those in areas where regimes disregard digital rights such as Myanmar, Iran, and Russia. It’s also being used in Ukraine due to internet infrastructure having been destroyed in the war.

“Ceno holds great promise and launches at an opportune time for those engaged in democracy movements and activities,” says Dmitri Vitaliev, founder, and director of eQualitie. “It is already helping thousands of civilians, NGOs, investigative journalists and independent media internationally to share information on their mobile devices.”

Micro-lending is also expected to grow, at a CAGR of 12% to $305 billion, driven by micro-lending services among end-users, including micro-enterprises and small enterprises.

Insurance gains

As a large sub-sector of financial services, the global insurance market is also in line to see exponential growth as emerging trends expand.

These include boiler insurance (14% CAGR to $18 billion), equity indexed life insurance (13% CAGR to $6 billion), variable life insurance (6% CAGR to $157 billion), and property & casualty reinsurance (11% CAGR to $718 billion. 

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.