Final Industry Analysis Paper

Economy increasing debt service ratio o dsr ratio of

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economy Increasing debt service ratio o DSR- ratio of debt payment to disposable income OPPORTUNITIES Banking & brokerage global investments Asset management market Growth in the credit card market Growth in commercial banking industry Opportunistic acquisition & further industry consolidation Provide job opportunities for others THREATS New banking regulations in the U.S. & Europe Increased competition from top Finical Services companies 26
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Bank of America STRENGTHS Largest U.S. based financial holding company Diversified range of banking and non-banking services Convenience (online banking, mobile banking) WEAKNESSES Litigation problems driving up expenses Weak wholesale banking operations Public relations Social media presence OPPORTUNITIES Recently received $5 billion investment from Berkshire Hathaway to shore up capitol levels Ability to outperform competitors when economy rebounds because it owns largest market share in U.S. Declines in the loan loss provisions THREATS AIG has files a $10 billion lawsuit against the firm Threats from defaults in residential lending and credit cards Restrictions in capital markets Citigroup STRENGTHS The world’s largest credit card issuer Diversified financial products (consumer finance, retail banking, commercial banking, asset management) Global infrastructure WEAKNESSES Exposure to subprime mortgage market Debt obligations related to asset backed securities & subprime market OPPORTUNITIES Online & mobile banking Emerging markets Integration of automated trading desk THREATS Weakening financial markets Consolidation in the banking industry Larger competitors Weak mortgage market in the U.S. 27
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Outlook for the Financial Services Industry: Short-term & Long- term Short-Term The financial services industry is slowly moving forward . The reason for moving slowly is because of the political election in the fall of 2012. No new widespread changes will happen until the election is over. Trust in large financial service companies are decreasing. o Ex: Occupy Wall Street Other Political Protest Long-Term In the long-term, financial services companies will be on the upswing . There will be many challenges These companies need to restore public faith back in financial services companies Companies need to have a new way of operating with new regulations They need to improve customer relationship o User-friendly technology interfaces o User friendly platforms for stock analysis 28
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Conclusion This project has explained four of the top twenty industries in the world. These industries being: Entertainment, Healthcare, Insurance, and Financial Services.
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