The financial services sector is still in its infancy and needs to be ready to take advantage of the economic environment of the next decade, says a new report by the McKinsey Global Institute.
The McKinsey report titled The Next Financial Era, 2020, predicts that the industry will become more complex and volatile, as consumers increasingly rely on online services such as Amazon, Google, Netflix, and Airbnb to make their daily lives more efficient.
According to the McKinley report, the financial services market is expected to expand by 4.3% in 2020, from $2.1 trillion in 2020 to $2,927 trillion in 2027.
The financial services will be an important part of the 2020 economic expansion, with financial services accounting for approximately half of the total growth of the US economy, the McKinseys report said.
Financial services, which include money transfer, credit card, and debit card companies, will be able to grow at a compounded annual growth rate of 10.5% in the next 10 years, according to the report.
In the 2020s, the average consumer will spend over $1,000 on financial services annually.
This figure will double by 2027, according the McKinys report.
While financial services companies will be among the most popular businesses in the future, the rise in financial technology will drive a change in how people think about the financial industry.
According to a McKinsey study, 70% of Americans are not aware that financial institutions are now able to access information from their bank accounts, even though they are required to do so by law.
The McKinsey research suggests that by 2020, over 60% of the world’s financial services businesses will be technology-enabled, including mobile payment, payments, and credit card processing.
“By 2020, the number of Americans who are likely to have access to financial services and banking services will grow significantly,” the McKinleys report said, adding that by 2026, the amount of money being sent by consumers through financial services accounts will reach $6.9 trillion.
The US government has set a goal of making financial services available to all Americans by 2020.
The government has proposed a number of measures to help ensure that Americans are able to obtain their financial needs through the financial system, including: requiring financial institutions to have a federal virtual clearinghouse that can accept the same kind of information that is currently accepted by banks and credit unions, and expanding online payment services to cover more people.
However, the federal government has not provided a set of regulations that would allow consumers to make informed decisions about the use of financial services.