Financial services industry

The financial services industry is a multifaceted sector encompassing institutions and businesses that manage money, facilitate transactions and support economic growth. Core segments include banking, insurance, asset management, capital markets, fintech and specialty finance. Banks provide essential functions such as lending, savings and transaction facilitation, while asset management firms guide investment portfolios for individuals and institutions. Insurance companies offer risk mitigation and protection against loss, and fintech companies leverage technology to transform traditional financial practices. Together, these organizations ensure the flow of capital, enable investment and help safeguard the wealth of businesses and individuals worldwide.

Rapid digital transformation is redefining the industry, with artificial intelligence, blockchain and advanced analytics driving innovation in customer experience, regulatory compliance and risk management. The rise of digital assets and cryptocurrencies is creating new opportunities and challenges, prompting firms to invest in secure digital infrastructure and adapt to evolving regulatory landscapes. Cybersecurity remains a top concern as sophisticated threats continue to target financial organizations. Meanwhile, environmental, social and governance (ESG) priorities are influencing investment strategies and operational decisions, pushing the sector toward greater transparency and sustainability.

From large commercial banks and credit unions to boutique wealth management firms and disruptive fintech startups, financial services organizations operate across diverse markets and client bases. Institutional investors, retail clients and business enterprises all rely on tailored solutions from these sectors to meet their unique financial needs. As industry trends accelerate, companies are focused on modernization, resilience and regulatory adaptation, positioning themselves for sustained growth and a competitive advantage.

As the middle market leader in assurance, tax and consulting services, RSM has the scale, industry insights and multidisciplinary experience to support the complex operations of financial services organizations across the sectors in this space. RSM’s vast network of experienced professionals and full spectrum of comprehensive services support every aspect of financial services organizations’ operations.

Industry trends are transformative forces that significantly affect financial services organizations. RSM has identified three key industry trends for 2025:

• Risk management and regulatory compliance: Financial services leaders must prioritize protecting their systems from collapse, safeguarding customers, preventing criminal exploitation, defending against cyberattacks, complying with regulations, managing risk and ensuring good governance.
  
  
• Growth and profitability: Financial services companies are adapting to changing consumer and market dynamics by developing new products, exploring new markets, expanding geographically, and engaging in mergers, acquisitions and partnerships to sustain growth. Simultaneously, they are rethinking their organizational structures to do more with a shrinking workforce.
  
  
• Technology and innovation: As AI and other advanced technologies rapidly transform business models, financial services companies seek the right tools and skills to enhance the customer experience, increase revenue, become more agile, and reduce costs and friction in their processes.

In addition to monitoring and providing insights on these trends, RSM regularly publishes thought leadership content, including The Real Economy monthly publication, to keep middle market business leaders abreast of current events. We also publish The Real Economy: Industry Outlook for financial services, where RSM industry senior analysts who are dedicated to studying economic and industry data, market trends, and emerging industry issues share their insights.

Here are some recent headlines from our financial services industry outlook:

• The great consolidation: Market forces drive asset manager transactions
• Could near-24-hour trading be the future? A look at capital markets implications
• CRE maturities’ true exposure for financial institutions

Challenges and risks in the financial services industry

Financial services organizations find themselves at the crossroads of transformative change, shaped by disruptive technologies and evolving regulatory demands. The relentless march of technology—including blockchain, tokenization and AI—has ignited innovation and fresh opportunities, yet simultaneously introduced new complexities and vulnerabilities for the financial services industry. Regulatory compliance remains a formidable hurdle, with organizations needing to adapt to heightened oversight and risk management expectations.

Economic uncertainty continues to challenge growth and profitability, as do fluctuating market conditions and the imperative to innovate without compromising security. In the shadow of recent banking disruptions, the appetite for lending solutions is strong, but institutions must navigate a landscape where risk and regulatory scrutiny are also paramount.

Compounding these pressures are workforce shortages and the urgent need for digital transformation. The shift toward data-driven decision making and increased reliance on technology brings cybersecurity threats and fraud risks to the forefront, demanding robust defence mechanisms and agile responses. As organizations strive to optimize operations and enhance enterprise value, they must also contend with complex tax regulations, shifting investor expectations for transparency, and evolving consumer behaviours. In this rapidly changing environment, the ability to anticipate and manage risks—while leveraging innovative solutions and maintaining regulatory compliance—will define those who thrive in the financial services sector in 2025.

Financial services industry solutions

RSM leads the middle market in providing assurance, tax and consulting services tailored to the financial services industry. With deep industry knowledge and technical experience, RSM empowers financial services organizations to achieve growth and operational efficiency.

RSM offers risk and regulatory compliance solutions for financial services organizations, as well as cybersecurity solutions to help safeguard financial services businesses from emerging threats. Our knowledgeable professionals also help implement AI, analytics and cloud services to drive digital transformation.

By leveraging these services and solutions, financial services organizations can enhance decision making, mitigate risks and optimize performance in a rapidly evolving market.