The financial industry dominates the global economy. According to a study by Statista, there are over 10 million financial services companies worldwide, accounting for about 20% of global GDP. At the same time, asset managers manage global assets of over $250 trillion. Nevertheless, there is still potential for innovation.
In particular, investment offers for specific target groups open up opportunities. Around 55% of millennials already invest in securities, and the number is growing. However, anyone planning to get started has to overcome legal and organizational hurdles.
Growth areas in the financial industry
The financial industry offers a wide range of opportunities for successful specialization. In particular, the wealth accumulation sector is experiencing dynamic growth as more and more people are actively investing in their financial future.
According to the World Wealth Report 2023, 30% of investors worldwide plan to diversify their portfolios for retirement planning. In Europe alone, 40% of savers are investing specifically in products such as ETFs, bonds and sustainable derivatives. This increasing demand underscores the growing interest in alternative and customized investment solutions.
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Green investments and diversification on the rise
Traditional options such as gold remain relevant, but investors are increasingly looking for diversification opportunities. Green investments, for example in renewable energies or climate-friendly projects, have established themselves as popular alternatives.
The market for sustainable financial products grew by an impressive 60% worldwide in 2022, according to a study by the Global Sustainable Investment Alliance. This offers startups enormous opportunities to develop innovative products that combine sustainability and returns.
Customized investment solutions for target groups
Startups that focus on the specific needs of age groups or income brackets benefit from clear competitive advantages. Platforms that use automated investment strategies are particularly attractive to tech-savvy millennials. This target group prefers digital tools that combine transparency and user-friendliness. Hybrid approaches that combine digital services with personal advice also offer the opportunity to appeal to a broader target group.
Important legal requirements for entry into the financial industry
Entering the financial industry requires compliance with numerous legal requirements in order to safeguard operations and meet regulatory requirements. One of the first steps is to apply for an LEI number online. This 20-digit alphanumeric identifier is standardized worldwide and enables unique identification of companies participating in financial transactions.
According to statistics from the GLEIF (Global Legal Entity Identifier Foundation), over 2.3 million LEIs have been registered worldwide. The application process is straightforward and can usually be completed online in a few minutes.
The role of the LEI in the financial industry
The LEI is required for all companies and institutions active in financial markets. It is used to clearly identify business transactions and ensure transparency. In particular, an LEI number is required to execute trading transactions under the EU MiFID II/MiFIR regulation. Without a valid LEI number, financial institutions cannot carry out transactions on behalf of a company. The costs for applying for one are around 80 to 100 euros per year, which is a small investment compared to the potential consequences.
Trust and professionalism are required
In addition to compliance with legal requirements, trust plays a crucial role. Customers expect transparent processes and high-quality advice. According to a 2022 study, 78% of customers cited transparency as the most important factor when choosing a financial services provider. Certifications, such as ISO 27001 for information security, help companies to gain this trust. At the same time, regular training for employees can help ensure the quality of advice and compliance with legal requirements.
Digital tools as a competitive advantage
Digitalization has transformed the financial industry worldwide. According to a survey, 78% of financial service providers rely on AI-supported analysis to understand customer behavior and create customized offers. These tools enable companies to make more precise recommendations, which significantly increases customer satisfaction and loyalty. The global market for financial technology (Fintech) is estimated to reach $305 billion by 2025, highlighting the increasing importance of digital solutions for the industry.
International trends in digital finance
Robo-advisors are a prime example of the integration of digital technologies. In 2023 alone, robo-advisors managed $1.4 trillion in assets worldwide. This amount is expected to grow to USD 2.5 trillion by 2027, driven by the increasing demand for cost-efficient and user-friendly investment solutions.
Markets such as the US and China dominate this sector, but Europe is also showing strong growth, with the user base expected to increase by 25% annually. This growth highlights the global shift towards automated financial management, offering personalized solutions at scale.