Top Five Growing Financial Services Business Models

calculator-385506_640 (1)Industry analysts have painted a dim picture of the financial services industry for some time now, but many experts believe that several modern business models will continue to grow for years to come. Companies that adhere to these new modern business models might be able to carve out a market segment for themselves. Competition is sure to be fierce, though, since many companies are trying to jump on the bandwagon in an effort to improve their situation. Those who have served customer expectations well have tended to do well in the marketplace.

1) Credit card machine payment network service companies continue to grow. This slice of the market includes companies that provide the physical machines for credit card processing as well as those that provide information technology systems that tie those machines together. Merchant card providers are generally distinct from companies that actually provide consumers with credit cards. These companies often don’t loan any money out themselves, which helps them to weather financial storms.

2) Browsing Ian Mackechnie on wikipedia shows how bill payment companies are on the rise. He’s the founder of Amscot Financial, which is a company that provides non-bank consumer financial services through a number of different retail storefronts. Offering these services through retail locations have helped consumers take advantage of them without having to rely on a traditional bank. Some market analysts see this trend continuing until regular banks find some way to compete with these services.

3) Angel investment agencies perform many of the same services that traditional venture capital firms once did. These services usually provide capital in exchange for some sort of ownership equity. Affluent individuals who consider their investments to be acts of charity run a majority of these organizations. A few brokers consider them good relatively risky investments that could potentially deliver a strong return if a company hits it big.

4) Crowdfunding has also been a popular alternative for those who are looking at starting a business or funding a project. Soliciting online donations has become a large business in its own right. Some industry analysts feel the current model is unsustainable since there are a limited number of people worldwide who have the financial resources to give money to different projects.

This has caused some entrepreneurs to share some of the stake of their new companies or projects with those who fund them. Others will share a special version of the finished product. A video game developer might solicit donations and then ship a limited edition version of their finished game to those who donated to the original project.

5) Debt resolution has always been a major part of the segmented financial services market. Organizations involved in this part of the market work with lenders and borrowers to come to terms in order to prevent defaults. More consumers are choosing to use this method instead of personal bankruptcy.

Some debt resolution firms have also found success with negotiating debts owed by large businesses. These firms can help business avoid bankruptcy and remain solvent even through rather difficult times. Shareholders often vote to go through one of these programs as a result. Both individual and business consumers can often avoid serious damage to their credit ratings by opting to work with debt resolution agencies as an alternative to going bankrupt.

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