Risks and Opportunities in the Financial Services Industry

Financial services

Financial services is a broad industry that includes banks, credit-card companies, insurance companies, accountancy firms, and consumer finance firms. It is a crucial part of the economy, enabling businesses to maximize returns and allowing individuals to save money for the future.

This sector is an important contributor to a country’s economic growth, but it also comes with its own unique challenges. As a result, it’s critical to consider the risks that exist within the financial services industry.

A few of the most common concerns that arise in the financial services sector include cybersecurity, fraud, and regulatory issues. These are all issues that can affect a company’s bottom line, so it’s essential to understand them and work hard to avoid them.

BPM Integration

As financial services become more digitized, there is an increased need for automation to remove repetitive tasks and free up employees to focus on higher-value activities. In this way, bankers can improve customer service, reduce costs, and keep customers happy.

Business Process Management (BPM) integrates all the different parts of a company’s processes to ensure that everything runs smoothly. By integrating BPM into a single system, organizations can monitor delays and allocate resources accordingly. By using software solutions, such as Salesforce’s Financial Services Cloud Einstein, agents can predict what might happen and proactively make changes in order to minimize delays and risks.


Financial services companies are subject to a range of regulations that protect consumers and ensure fair treatment of clients. These regulations often aren’t meant to be a deterrent, but they can inhibit innovation and growth. For example, many financial services providers are required to disclose certain information about their products or services, making it difficult for them to compete with other companies.

Gender Diversity in Financial Services

Women are represented throughout the financial services industry, but there is a notable gender gap in leadership positions. While women hold 53 percent of entry-level positions, they fall to less than one-third at the SVP and C-suite levels. This is on par with the cross-industry average, but it’s still an issue that needs to be addressed.

Angel Investors

These are independently wealthy individuals who invest in startups and small businesses, usually purchasing a percentage of the company’s shares in exchange for some profit participation. This type of financing is especially valuable to tech firms that are seeking capital, and can be particularly helpful for smaller businesses.


This is the most familiar part of the financial services industry and consists of handing deposits into checking and savings accounts, as well as lending money to customers. Banks earn interest from these loans, and some of it is returned to the people who deposit money with them.

Real Estate

Another major subsector of the financial services industry is real estate, which consists of everything that goes into buying and selling property. This can include getting a mortgage, insuring the property, inspecting it, and other services.

Regulatory Agencies

There are a number of government agencies and independent entities that oversee different aspects of the financial services industry. Among the most important are FINRA and OCC, which ensure transparency and protect consumers. These agencies also ensure that financial institutions don’t mishandle their customers’ funds or engage in unethical practices.