Luke Persichetti is a recent graduate of Yale University. His academic training in economics gives him the ability to judge the importance of recent trends in the American business landscape. Currently residing in New York, he has been able to utilize his background in financial analysis, and trading fixed income securities to help him understand how the markets work.
Persichetti was involved in several extracurricular activities while at Yale. He was a member of the varsity track & field team, for which he competed in the shot put and hammer throw. He was elected president of the Delta Kappa Epsilon fraternity. He was also involved in several areas of volunteer work, including assistant coaching a local youth track team as well as delivering food to New Haven homeless shelters and halfway homes through Yale Hunger and Homelessness Action Project.
Luke Persichetti examines the importance of the financial services industry for the American economy, explaining current trends in the market.
The Financial Service Sector
The financial services industry is essential to global economic stability. Without financial service companies, there would be no system in place for the transfer of funds between businesses and individuals. Access to capital would be scarce, and there would be no way to make investments that allow planning for the future.
The financial services sector covers such types of companies as banks, credit card companies, and other lenders, accountants, securities brokers, insurance companies, and investment funds. This sector comprises a large portion of the country’s workforce, at 8.6 million employees. In 2017, the sector was responsible for 7.5 percent of the United States gross domestic product, or $1.45 trillion.
Current Trends in Financial Services
The digital trend has made an outsized impact on the financial service industry. Businesses and individuals have been able to take advantage of mobile apps, trading platforms, and new technologies such as blockchain to secure their financial data.
Banks are facing stiff competition and focusing more on the customer experience. Every aspect of a transaction should be clear and easy to understand, and it should be completed promptly. Today’s consumers are used to receiving information instantly, and banks need to keep up with these trends.
Personalization is another popular trend in banking. With the ability to personalize the services, banks and lenders can set themselves apart from the competition. Another way of customizing the experience to fit each customer is the use of data-driven marketing.
Another way that banks and financial services companies are setting themselves apart is by creating “challenger brands.” These brands offer a different experience from the traditional bank, with certain amenities that traditional banks cannot offer. One example is a mobile-only checking account which bears a high-interest rate.
Stock Market Trends According to Luke Persichetti
The 2018 fiscal year was a volatile one that started highly and ended with some disappointing drops. The economy is healthy overall, but rumblings of uncertainty caused most asset prices to dip at yearend. The expectations are lower for 2019, and investors should be prepared for less than average gains.
Tech stocks are projected to have a less than stellar year in 2019, after several years of boom and bust as valuations have exceeded growth in earnings.
The Crash of Cryptocurrencies
Another major trend in the financial service sector is the crash of Bitcoin and other cryptocurrencies. These currencies have not been adopted in the mainstream as some investors have hoped. There is room for these technologies to bounce back and become an important part of the market, but for now, many experts doubt that they are viable investments. As the systems become more stable, Bitcoin and its competitors may become be a better choice.
Major banks and financial service companies have invested in blockchain systems, pointing to the long-term viability of this technology.
As the years go by, Luke Persichetti thinks financial services are becoming an even more important part of the nation’s economy. These companies have the opportunity to transform their way of doing business and to provide excellent service to businesses and individuals alike.