In the ever-changing realm of finance, it’s important to have an extensive understanding of the overarching financial services industry.
It’s how you can navigate the industry’s complexities, nuances to make an informed decision for all your financial needs.
That’s what the following financial services industry statistics can provide.
Today, the financial services industry is one of the largest and most important sectors of the global economy.
Its scope included services for individuals and businesses in terms of banking, insurance, investing, and financial planning.
The statistics we sourced for you in this article will explore the trends, growth patterns, and overall health of the industry.
In this article, we will delve into the size and scope of the financial services industry, and its growth trajectory.
We will also discuss the various segments of the industry including banking, investment, and insurance.
Furthermore, we will also enlighten you about how technology plays a role in this landscape.
Let’s explore the financial service industry.
Post Contents
- 1 Key Statistics
- 2 Financial Services Industry Statistics
- 3 Global Financial Services Market Statistics
- 3.1 1. In 2022, the global financial services industry was worth $25.51 trillion.
- 3.2 2. The financial services industry is worth around $4.85 trillion in the United States.
- 3.3 3. In 2021, the financial services industry in India was estimated at $500 billion.
- 3.4 4. The financial services industry in the United Kingdom was worth £173.6 billion in 2021.
- 3.5 5. The global FinTech industry is expected to reach over $9.2 trillion by 2027.
- 4 Banking Services Statistics
- 4.1 6. China, the U.S. and the U.K. make up the three largest banking systems on the planet.
- 4.2 7. The United States has the most banks in the world with over 4,500 banks.
- 4.3 8. The global banking industry is worth more than $150 trillion.
- 4.4 9. Global mobile banking is expected to reach 3.6 billion by 2024.
- 4.5 10. The global BaaS market size way over $39 million in 2021.
- 5 Insurance Services Statistics
- 5.1 11. Globally, insurance premiums accounted for more than $6 trillion in 2021.
- 5.2 12. In France, insurance accounts for over 10% of the country’s GDP.
- 5.3 13. Hong Kong has the highest insurance penetration at 20% of the GDP.
- 5.4 14. The United States had the highest insurance premium market share in 2022.
- 5.5 15. In 2022, the global health insurance market was worth $2.09 trillion.
- 6 Financial Planning Services Statistics
- 6.1 16. The world’s wealth management industry is worth more than $100 trillion in AUM.
- 6.2 17. The global financial planning/advisory market is expected to grow to $207.14 billion.
- 6.3 18. In America, around 300,000 financial advisors work across industries.
- 6.4 19. In 2021, the American financial planning industry generated $56 billion.
- 6.5 20. The Asia-Pacific region is the largest financial advisory market in the world.
- 7 FAQs
- 8 Conclusion
Key Statistics
- In 2022, the global financial services industry was worth $25.51 trillion.
- The financial services industry is worth around $4.85 trillion in the United States.
- In 2021, the financial services industry in India was estimated at $500 billion.
- The financial services industry in the United Kingdom was worth £173.6 billion in 2021.
- China, the U.S. and the U.K. make up the three largest banking systems on the planet.
- The global banking industry is worth more than $150 trillion.
- Global mobile banking is expected to reach 3.6 billion by 2024.
- Hong Kong has the highest insurance penetration at 20% of the GDP.
- In 2022, the global health insurance market was worth $2.09 trillion.
- The global financial planning/advisory market is expected to grow to $207.14 billion.
Financial Services Industry Statistics
We will discuss the financial services industry according to global, banking, insurance, and financial planning services.
Global Financial Services Market Statistics
This section will address the status of the global financial services market.
1. In 2022, the global financial services industry was worth $25.51 trillion.
Globally, the overall financial services market size was valued at $25.51 trillion (USD) in 2022.
Growing at a CAGR of 9.7% between 2023 and 2031, it’s expected to worth over $58.69 trillion (USD) by 2031.
The digitization of banks and financial institutions alongside the swift expansion of the commercial lending sector have contributed to this market’s growth.
(Growth Market Reports)
2. The financial services industry is worth around $4.85 trillion in the United States.
In the United States, the financial services industry was worth around $4.85 trillion (USD) in 2021.
Overall, this industry contributes $1.5 trillion to the country’s total GDP, which accounts for 7.4% of the GDP.
In the United States, there are more than 530,000 private and more than 1,000 governmental finance and insurance organizations that employ approximately 6.55 million people.
(Zippia)
3. In 2021, the financial services industry in India was estimated at $500 billion.
Data from 2021 revealed that in India, the financial services industry accounted for $500 billion (USD).
The FinTech market contributed $31 billion of that figure.
This data shows that FinTech growth is huge and still growing due to digitization all over the country.
It’s expected that this industry will grow at an annual rate of 22%, which ranks India at third in the FinTech market after the United States of China.
(BFSI)
4. The financial services industry in the United Kingdom was worth £173.6 billion in 2021.
In 2021, the financial services industry contributed £173.6 billion to the United Kingdom economy.
The total economic output accounted for 8.3%.
This market is the largest in London, one of the UK’s main hubs, where roughly half of the financial services industry was generated.
(House of Commons Library)
5. The global FinTech industry is expected to reach over $9.2 trillion by 2027.
FinTech is short for financial technology and is part of the overall financial services industry.
Globally, this part of the financial services sector will reach over $9.2 trillion by 2027.
In 2022, this segment of the financial services industry accounted for over $3.3 trillion.
We can surmise from this data that growth will be extensive.
(Statista)
Banking Services Statistics
In this section, we’ll discuss the global banking services segment.
6. China, the U.S. and the U.K. make up the three largest banking systems on the planet.
In a 2019 survey of global banking systems, China, the United States, and the United Kingdom were ranked the top three banking systems in the world.
China has three banks that have the four top spots in the world, which include ICBC, the Bank of China, the China Construction Bank, and the Agricultural Bank of China.
In the United States four of the top banks on the list included JP Morgan Chase, the Bank of America, Wells Fargo, and Citigroup.
(Investopedia)
7. The United States has the most banks in the world with over 4,500 banks.
Of banks across the globe, the United States has the most with over 4,500 including small banks.
In fact, there are more tan 4,000 small banks in the United States.
That’s more than small banks across the whole EU combined.
According to data, small banks may become a problem in the United States causing at least hundreds of thousands of people to lose it all.
(NPR)
8. The global banking industry is worth more than $150 trillion.
According to statistics, the worldwide banking industry is worth $154.21 trillion (USD) as of 2022, which includes all assets.
Moreover, the 1,000 biggest global banks surpassed $10 trillion for the first time ever in 2022.
Moreover, since the pandemic, China’s banking market has outpaced the United States in Tier 1 growth.
(The Banker)
9. Global mobile banking is expected to reach 3.6 billion by 2024.
According to data, it’s predicted that by 2024 mobile banking will reach 3.6 billion (USD).
If you use your smartphone to check your balances, deposit funds, and other banking services, this is a significant statistic to know.
Due to the growth of mobile devices and mobile-friendly banking apps, people are less apt to go to their brick-and-mortar bank branch.
Virtually anything you need to do at your bank can be done via your mobile banking app.
(ZipDo)
10. The global BaaS market size way over $39 million in 2021.
In 2021, data showed that the BaaS (banking-as-a-service) segment was valued at over $39 million (USD).
This market is expected to reach $156 million (USD) by 2027 at a CAGR of 25.99% between now and 2027.
This is a significant and important statistic to know no matter how you bank.
(LinkedIn)
Insurance Services Statistics
This section will be all about the insurance services market.
Insurance premiums accounted for over $6.8 trillion in 2021 worldwide.
For perspective, this is more than the GDP of France, Spain, and Italy combined.
Furthermore, analytical data reveals that global insurance premiums account for 7.1% of the globe’s economic activity.
(MapFRE)
12. In France, insurance accounts for over 10% of the country’s GDP.
While some regions in the world have more people with insurance coverage than others, France’s insurance accounts for over 10% of its total GDP.
In Italy and the Netherlands, this percentage is about 9% and in Spain and Germany it’s at 6.5%.
Therefore, we can garner from this data that it’s less pronounced in European countries.
(MapFRE)
13. Hong Kong has the highest insurance penetration at 20% of the GDP.
According to our sources, Hong Kong’s insurance penetration has resulted in 20% of its GDP.
Taiwan’s insurance penetration accounts for 14.5% of its GDP and in South Korea this percentage is 10.7%.
These regions alongside of the United States, Great Britain, and France, are among the globe’s top 15 insurance market.
It’s in these regions that insurance penetration accounts for double digits in contributing to the GDP.
(MapFRE)
In the United States, the total premium volume accounted for $2.7 trillion (USD) in 2022.
This is significantly higher than in other countries such as China, Japan, Canada, and Great Britain.
Moreover, the percentage of insurance premiums related to the country’s GDP is at 11.8%, which isn’t the highest in the world.
(MapFRE)
15. In 2022, the global health insurance market was worth $2.09 trillion.
Data shows that the global health insurance sector was valued at $2.09 trillion (USD) in 2022.
This solely includes on the health insurance market.
More data shows that by 2023, the global health insurance market is expected to achieve 2.93 trillion (USD).
The CAGR is expected to be 4.30% between 2023 and 2030.
(LinkedIn²)
Financial Planning Services Statistics
Here, we will address the financial planning services sector.
16. The world’s wealth management industry is worth more than $100 trillion in AUM.
The worldwide wealth management industry is worth more than $100 trillion (USD) in AUM (asset under management).
This statistic shows us how massive this industry is today.
Wealth management is how financial planners and advisors help you invest and improve your financial situation and minimizing risk.
(Investopedia²)
17. The global financial planning/advisory market is expected to grow to $207.14 billion.
In 2023, the global financial planning/advisory market is expected to grow to $207.14 billion.
In 2022, this sector of the financial services industry accounted for $198.09 billion (USD).
That’s a CAGR of 4.6% between 2022 and 2023.
By 2027, at a CAGR of 3.7%, the global financial planning/advisory sector is expected to achieve $239.55 billion.
(Yahoo Finance)
18. In America, around 300,000 financial advisors work across industries.
Recent data says that there are about 300,000 financial advisors working in a variety of industries in every city and state in America.
Most of these financial advisors have college degrees.
Also, this is a male dominated industry, though women and minorities are known to be a significant part of this sector.
(Yahoo Finance²)
19. In 2021, the American financial planning industry generated $56 billion.
The financial planning industry in America generated $56 billion (USD) in 2021.
The sheer magnitude of this data shows us just how significant financial planning is in America.
Moreover, 74% of financial advisory clients feel that their advisors have positively influenced their financial security.
(ZipDo²)
20. The Asia-Pacific region is the largest financial advisory market in the world.
According to statistics, the Asia-Pacific region of the globe is the largest in the financial advisory sector as of 2022.
Despite the global pandemic and the Russia-Ukraine war, this financial services segment has recovered well in the Asia-Pacific region and now dominates.
(Globe Newswire)
FAQs
What are the different types of financial services?
The financial services industry includes a broad range of services to help businesses and individuals manage their money/finances.
Here is a list of the most common types of financial services:
1. Banking: Banks are financial institutions that provide a variety of services such a savings accounts, checking accounts, loans, credit cards, and sometimes even investment accounts.
2. Investing: Investing firms help people make investments in mutual funds, bonds, stocks, and other financial instruments in the investing realm.
3. Insurance: Insurance companies are there to provide insurance coverage for risks like death, disability, and property damage.
4. Financial Planning: Financial advisors help people create and implement financial plans to achieve their goals.
What are the benefits of having a financial advisor/planner?
We looked at our sources to find the benefits of having a financial planner or advisor.
Here are a few of these benefits:
They help you to…
1. develop a financial plan to achieve your goals
2. choose the right investments for your needs and risk tolerance
3. manage your debt
4. save for retirement
5. protect your assets.
If you’re new to investing or you have some complex financial needs, financial planners/advisors can be beneficial to you.
What are some risks of investing?
All types of investing comes with some level of risk. How much risk depends on the kinds of investments you make.
For instance, stocks are usually considered to be riskier than bonds, but stocks also have the potential to generate higher returns.
Before investing, you should understand the risks involved.
You need to make sure that you have a diversified portfolio, which involves investing in several different kinds of assets.
Understanding the risks can help you mitigate some risks.
How do you choose a financial advisor?
When picking a financial advisor, it’s crucial to consider things like their reputation, experience, skills, fees, and qualifications.
You need to ensure that the financial advisor you choose is a good match for you and your financial needs and goals.
Here are some tips we found to help you choose a financial advisor:
1. Ask your friends and family, colleagues, and others you trust for recommendations.
2. Check with the state securities board in your state to find out if the advisor is registered.
3. Interview several financial advisors before making your decision.
4. As about the qualifications, experience, and fees of the advisor.
5. Make sure you choose a financial advisor that’s a good fit for your financial needs and goals.
Conclusion
Now we can see that the financial services industry is a sophisticated and massive market that plays a crucial role in the global economy.
By reading and studying these industry statistics, you can feel more enlightened and gain some valuable insights into the trends, growth, and overall health of the financial industry.
We have covered specific financial statistics for the global realm, banking, insurance, and financial planning sectors.
We can see how all this data about the trends and other aspects of this industry impact specific regions and the world.
Moreover, we’ve learned the overall worth of the financial services industry and other aspects that drive the world’s economy.
We hope you feel more enlightened about the financial industry after reading these financial services industry statistics.
