Financial services comprise one of the most important and influential sectors of the economy. They provide financial services to people and corporations and make up an essential part of our everyday life. The financial services sector is a primary driver of a country’s economy, as it provides the free flow of capital and liquidity in the marketplace.
Financial services refer to a broad range of businesses that manage money. These include, for instance, commercial banks, investment banks, credit unions, insurance companies, stock brokerages, and asset managers. In recent years, there has been an increasing focus on financial technology (fintech) within the financial services sector, which refers to technology used to augment, streamline, digitize or disrupt traditional financial services.
Largest payment card brand worldwide
Leading region for venture capital financing worldwide
Private companies can grow through an initial public offering (IPO), which is when the company offers shares to the public for the first time through a stock exchange to raise money. The largest IPO worldwide as of June 2022 was of Saudi Aramco, a Saudi Arabian multinational petroleum and natural gas company. Their IPO raised around 26.6 billion U.S. dollars in December 2019.
A unicorn is a privately owned company with a market value of over one billion U.S. dollars. As of July 2022, the Chinese fintech company, Douyin, was the highest valued unicorn worldwide. Douyin, that owns Tiktok, was valued at approximately 200 billion U.S. dollars by venture capital firms in 2022.
Investments into fintech businesses worldwide increased sharply between 2010 and 2021, with the exception of 2020, when investments dropped drastically due to the economic contraction caused by the pandemic. In 2021, the value of fintech investments reached a record height of roughly 239 billion U.S. dollars. In 2022, the value of investments decreased notably again, potentially marking the end of the booming era of fintech.
One of the most popular online and mobile payment systems around the globe is PayPal. After more than a decade of continuous growth in number of users, the online payment provider had 435 million active user accounts as of the last quarter of 2022. While this was still an increase compared to all previous quarters, year-on-year growth dropped to 2.1 percent. The company was founded in 1998 and provides online money transfers and payment processing for online vendors and other commercial users.
The world’s highest valued merger and acquisition transaction was Vodafone AirTouch PLC’s takeover of Mannesmann AG in 1999. The deal reached a transaction value of 202.8 billion U.S. dollars, and no larger merger and acquisition deal has taken place since. The financial advisor of Vodafone for the acquisition was Goldman Sachs Group Inc., which is the second largest financial advisor to M&A deals worldwide, after the leader JPMorgan.
The financial services section covers a broad range of statistics and facts on wide variety of sectors. These sectors include corporate financing, fintech, loans and leasing, mergers and acquisitions and private equity, payments, and savings and debt.