EIU
This financials sector comprises establishments primarily engaged in financial transactions and/or in facilitating financial transactions.
Financials includes companies involved in banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, financial investment, real estate investment trusts, and real estate management & development. Three principal types of activities are identified: raising funds by taking deposits, issuing securities and, in the process, incurring liabilities. The industry makes up just under 10% of the United States economy’s GDP at a market cap of 5.90T. Some of the most recognizable companies within the industry are JPMorgan Chase, Wells Fargo, Citigroup, and Bank of America. As with many industries, the health of the financial sector is correlated to the overall health of the economy. Investing in the financial sector is popular and allows consumers to create wealth, manage risk, and meet financial needs.
Industry Drivers
10%
Consumer confidence increase 10% in the next year. High consumer confidence drives increased spending throughout the economy, consistent regulation keeps uncertainty low, allowing for more speculative, high risk actions, and higher income also drives higher rates of spending.
12%
Revenue increased 12% in the past year. Industry performance has been very steady, with the notable exception of the Covid-19 pandemic, however the sector is expected to make a rapid recovery through the end of 2020 and continue through 2021. Revenues, as well as wages and investments, are expected to remain consistent into the future.
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