Financial services industry outlook
Key takeaways
What is the financial services industry outlook?
RSM’s financial services outlook provides insights into the major trends shaping the industry throughout the year. In our latest outlook, we examine how insurance broker consolidation could put pressure on middle market carriers.
In the asset management sector, the rapid expansion of evergreen fund structures marks a shift in asset managers’ offerings. Additionally, the democratization of alternative assets extends investment opportunities historically reserved for institutional investors and high net worth individuals to the average 401(k) participant. Meanwhile, in the capital markets space, greater access to research tools and investors’ increasing sophistication are contributing to the rise of retail investors.
Financial services trend 1: Insurance broker consolidation could put pressure on middle market carriers
Since 2020, insurance broker transaction activity has transitioned from an environment dominated by small-to-midsize agencies acquiring and merging with peers to a more mature pattern of private equity-backed and public brokers buying larger, regional brokers, resulting in carrier premium volume flowing through a smaller number of larger platforms.
Middle market insurance carriers should consider the risks that accompany this landscape
Financial services trend 2: The funds that never end: Why evergreen fund structures are here to stay
Private markets are facing fundraising headwinds from traditional sources while also finding new opportunities created by regulatory change. This dynamic is fueling the rise of evergreen funds as a tool to broaden distribution. However, these structures come with complexities that differ greatly from the traditional closed-end or open-end fund.
Financial services trend 3: Alternative assets in 401(k)s: Implications for asset managers and individuals
The president’s August Executive Order 14330, "Democratizing Access to Alternative Assets for 401(k) Investors," marked a significant policy shift that could reshape the retirement landscape for millions of Americans participating in employer-sponsored defined contribution plans.
For asset managers, the inclusion of alternative assets in retirement plans opens access to a massive market that has been largely off-limits, creating opportunities for product innovation and revenue growth. But for asset managers and individual savers alike, this policy shift brings challenges alongside the opportunities.
Liquidity, valuations and regulatory compliance are all key considerations
Financial services trend 4: From Wall Street to Main Street: Capital markets adapt to retail investor growth
Since the introduction of commission-free trading in 2019, retail investors have become a major force in the financial markets. The combination of fee-free trading and the increased amount of downtime for retail investors during the 2020 pandemic solidified retail investors’ relevance and importance to the markets.
Some of this volume can be attributed to the extension of global trading hours and cross-border market engagement, but the rise of retail investors as an influential and dynamic force in the markets goes beyond longer hours. Greater access to research tools and investors’ increasing sophistication are also at play.
Related insights
- /insights/industries/financial-services/ai-for-financial-services-organizations-in-2026
- /insights/industries/financial-services/fintech-trends-are-transforming-the-financial-services-industry
- /insights/industries/financial-services/new-bank-guidance-regulators-share-direction-on-third-party-risk
- /insights/industries/financial-services/managed-it-services-for-banks-and-credit-unions