The American financial general service industry is mainly constituted of the following:
According to IBISWorld, this industry consists of establishments, which are primarily engaged in providing one or more of the following: financial transactions processing (except central banks); reserve and liquidity services (except central banks); and check or other financial instrument clearinghouse services (except central banks). Different industry participants are involved in the transfer of funds between payer and payee. These transfers are physical and electronic check processing, electronic fund transfers through automated clearing companies or websites, and various debit and credit card payments.
Various operators function in the US financial services market, which provide general services mentioned above. However, their functioning in the market depends on the following factors (list is not exhaustive):
When a player is entering the US general financial services market, several factors should be considered with respect to taxation, technology, cost, and globalization. Various barriers prevent a new company from entering this industry and also give an indication of the extent to which this occurs. The taxation details give an insight into all kinds of taxation that are levied on specific commodities, along with various tax rebates. A new entrant in the US general financial services market should also keep a check on the following parameters:
IBISWorld circulates an Industry Risk Ratings report, which analyzes the inherent risks associated with the Financial Transactions Processing, Reserve and Clearinghouse Activities in the US industry.
The report looks at different operational risks associated with the American general financial service industry. Three types of risks that are recognized in the analysis are listed below:
Structural Risk: The Structural Risk defines the risk arising from within the industry itself and is based on seven key indicators. These key indicators, as defined in the report, are listed below:
The Overall Structural Risk Score in the report is defined as a weighted aggregation of these seven key indicators.
Growth Risk: The Growth Risk pertains to risks arising from the expected future performance of the industry. Mixing and analysis of the scores for Recent Industry Growth and Forecast Industry Growth, results in the Overall Growth Risk Score.
Sensitivity Risk: Different variations of risks arising from forces (sensitivities) external to the general financial industry, is referred to as the Sensitivity Risk. Exchange Rates, Interest Rates, Commodity Prices, and Government Regulations could be cited as various examples of external sensitivities.
Some Players in the American Financial General Services Market
American International Group, Inc. (AIG): American International Group, Inc. (AIG), which is one of the leading operators in the insurance and financial services industry, could be perceived as one of the global leaders in this industry. This group also has insurance and financial operations in more than 130 countries worldwide. The companies of this group serve a variety of commercial, institutional, and individual customers through the most extensive and latest worldwide property-casualty and life insurance networks of any insurer. AIG companies also operate in the fields of retirement services, financial services, and asset management around the world.
American General Financial Services (AGFS): This company is a member of American International Group, Inc. and deals in different fields of providing loans, retail financing, and other credit related products. Their customer base touches more than two million families in 45 states, Puerto Rico and the U.S. Virgin Islands. AGFS focuses in the following fields: