The financial sector is thriving due to the strong demand for financial services from enterprises and individuals. The industry is well-positioned for growth thanks to the adoption of emerging technologies. Technological advancements have helped prioritize user-friendly designs and personalized services, helping enhance customer satisfaction.
Given the robust demand for various financial services, the sector is poised for long-term growth. Amid this backdrop, it could be wise to add consumer financial stocks Global Payments Inc. (GPN – Get Rating), EVERTEC, Inc. (EVTC – Get Rating), and Payoneer Global Inc. (PAYO – Get Rating) to one’s watchlist, given their solid growth prospects.
Before diving deeper into the fundamentals of these stocks, let’s discuss why the financial services industry is well-positioned for growth.
Financial companies provide several services, including credit card processing, easy credit, insurance, tax accounting, wealth management, mortgage financing, and Buy Now Pay Later (BNPL) services. The digitization of these services has revolutionized the financial sector, meeting the needs of individuals, corporations, governments, and investment institutions.
The U.S. boasts one of the world’s biggest and most active financial markets. The financial industry benefits from a strong demand for affordable loans, driven by increasing consumer needs for housing and other essentials. Additionally, rising disposable income empowers consumers to use more financial services, contributing to the market’s growth. The global financial services industry is expected to grow at a CAGR of 6% by 2032.
With the proliferation of the Internet and the expanding usage of smartphones, the demand for online financial services has grown significantly. Consumers want convenience, pushing institutions to invest in user-friendly interfaces. The global consumer finance market is expected to grow at a CAGR of 7.1% to reach $1.96 trillion by 2029.
The shift to digital financial platforms opens significant growth opportunities for financial companies. Additionally, financial companies are expected to leverage the power of generative AI to enhance fraud detection, generate insights on customer behavior, etc., which will strengthen the sector’s growth further.
Furthermore, the financial services market is projected to grow at a CAGR of 7.4% to reach $33.31 trillion by 2026 and is expected to continue growing at a CAGR of 6.3% to reach $45.15 trillion by 2031.
Considering these conducive trends, let’s analyze the…
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