Financials: A Tech-Driven Opportunity

Summary

• Financials is the second-largest sector in global equity markets with a market capitalization of roughly $27 trillion.
• The sector ranked as the third-highest performing equity sector over the last 10 years.
• Financial services firms spent $773 billion on technology in 2025, the highest amount of any industry.
• $11 trillion of consumer payments & $24 trillion of commercial payments are still made annually with cash or check.
• E-commerce accounts for only about 15% of total retail sales in the U.S.
• Firms embracing transformative technologies are expected to grow three times faster than traditional banks from 2023 to 2028.
• The number of asset-light, service-oriented companies among the top 25 financial businesses has more than doubled since the global financial crisis.
• Private capital market assets have more than doubled over the past 12 years to $22 trillion.
• Private markets are projected to see 11% plus annual growth through 2028.
• The U.S. baby boomer generation owns more than $85 trillion in assets, representing 31% of U.S. wealth.
• Millennials hold about one-fifth the amount of wealth held by baby boomers.
• Gen Z holds less than one-tenth the amount of wealth held by baby boomers.
• Broad financial indexes remain heavily weighted toward traditional, legacy institutions with lower growth potential.
• Active managers with strong resources & deep sector experience are viewed as the most likely vehicle for investors to capture opportunities in the sector.