Financial Services Industry Outlooks
Trends, key focus areas, and strategies that may shape your business in the New Year. View the 2015 Financial Services Industry Outlook series.
One of the key attributes that has drawn investors to alternative investment managers over the years is their agility. Much like a downhill skier who needs to absorb the terrain to excel, these managers excel by navigating uneven conditions. Over the past few years though, the landscape has leveled out, with the booming stock market temporarily eroding alternative investment funds’ historic competitive advantage.
Banking & Capital Markets
After five years of tumultuous change, it is no surprise that banking and capital markets firms have yet to find steady ground. However, heading into 2014, there is increasing evidence that they may have a chance to shift to a higher gear – or perhaps even accelerate.What’s ahead for banks and capital markets firms as we look to 2014?
Commercial Real Estate
Three-quarters into 2013, the CRE industry is marked by continued recovery in asset prices, transactions and capital availability. Asset prices are close to 2007 peaks in the major metropolitan markets and transaction activity has improved in the secondary markets. Debt markets have improved to a point where refinancing concerns have eased and there is less worry about the maturity schedule. In addition, private equity and international investor interest have increased in U.S. CRE, with the region considered both the most stable as well as offering better overall returns relative to risk globally.
Can this recovery gain momentum as we move into 2014?
Life & Annuity
Life insurers and annuity writers may gain some sales traction in the year ahead thanks to modest economic growth, declining unemployment, and the possibility of an uptick in interest rates. And yet many have begun to realize to sustain growth over the long term, fundamental changes in their business models are necessary in the near term.
2014 finds the mutual fund industry in an enviable spot. Mutual fund firms have steadily added new assets while navigating a slippery regulatory terrain. Having grasped this balance, mutual fund firms are now looking to up their game. Much like speed skaters in search of that extra edge that will put them ahead of the pack, mutual fund leaders are innovating around the margins and experimenting with new products to help them develop a competitive advantage.
In 2014 the private wealth industry is expected to be as competitive as ever. While worldwide wealth is growing, there is an increasing number of institutions competing for the assets of the relatively few, very wealthy families. Many ultra-high-net-worth families are broadening their investment portfolios in search of the right mix of risk and return for their portfolios. They are entering new geographies and participating in more direct investments. These investments, when combined with additional tax and client reporting demands, are placing greater due diligence and operational burdens on private wealth managers.
Property & Casualty
The last few years have been particularly difficult for those occupying C-Suite positions, as more fundamental issues are threatening not only short-term results on their balance sheets, but challenging the long-term viability of their operating models as well.
Other Industry Outlooks
Challenges, trends and strategies that may shape your business in the coming year.
Rapid change rules the business landscape. But for organizations that are willing to take on challenges and leverage disruptive trends, the outlook for 2014 is positive. Find your industry below for guidance from some of Deloitte’s most experienced and innovative minds.