Capital Allocation: Financial institutions play a key role in directing capital to where it’s most needed, supporting business growth and economic development.

Risk Management: Through insurance and investment vehicles, the sector helps manage and mitigate financial risks for individuals and businesses.

Liquidity: Banks and capital markets provide liquidity, allowing for smooth transactions in the economy.

Cybersecurity: As services move online, there’s a heightened risk of cyber-attacks.

Compliance Costs: The cost of adhering to increasingly complex regulations can be significant.

Market Volatility: Financial companies are often at the forefront of economic downturns, facing risks from market fluctuations.

Changing Consumer Behavior: Millennials and Gen Z are more inclined towards digital-first financial solutions, which forces traditional models to adapt.