Future of Financial Services providers...

Rising income and burgeoning demand of middle class all across the globe coerce financial services providers (FSP) to reset their products portfolios and channel management. Further, the soaring competition within these FSPs force them to retain and grow their customers base. To meet these business challenges FSPs want to come up with more robust platform to support their clients with the help of IT service providers

After 1979 recession, financial sector had boomed in US. The whole financial services industry had taken precautionary measures to avoid such situation. Thanks to technological enhancements, most of the companies built themselves over the years and showed robust growth on charts. But time and again, Market tests sporadically and this time severity of the problem was more than expected

Business is always on top priority, technology is just an enabler.

In this dynamic world technology play a crucial role to help business. If we look out at financial services providers, the damage that has done, is huge. Many Financial Services Providers (FSPs) filed bankruptcy, merged and taken over by their rivals. In the same time, investors, shareholders have lost their hard earned money in blood bath of the market. We can’t point out a single individual or company or organization to blame, it is the greed that played a crucial role in submerging the entire ship.

Greediness in housing market- People were getting huge returns 25-30% in property that in turn attracted them to purchase multiple houses. Investment banks and hedge funds also saw lot of opportunity of minting money in this whole process. Investment banking companies leveraged their positions by more than 30x. US mortgage providers, Fannie Mae and Freddie Mac, also can’t be away from it and they leveraged their position by 70x . But sudden rise in interest rates and predatory lending and predatory borrowing causes the whole market collapse within a year When the crisis started, liquidity became a problem for investment banking companies and because of liquidity crunch, they collapsed over night.