Growth And Consolidation Predicted For Financial Services Industry In Year Ahead

The head of one of the Middle East’s leading independent financial services providers is predicting solid growth in 2018, but also a likely consolidation in the sector as the industry adapts to a changing regulatory landscape.

The CEO of the Nexus Group, Tarun Khanna, says that although the finance sector experienced a general slowdown in 2016, the market overall is now firmly in a recovery phase. He believes the positive trend will continue into the new year and expects growth of 8% to 10% in premium in 2018.

“2017 has been a much better year for us, this business is starting to grow again, and there are parts of our business that continued to grow right through the recession,” Tarun Khanna said. “2018 will continue this growth, but is also going to be a year of change right across the industry.”

As the market continues to recover, Tarun Khanna expects that regulatory changes will emerge as a growing issue for the industry during the coming year. He predicts that some financial services companies will struggle to meet increasing capital requirements, and may have to merge.

Khanna says regulators are also moving towards higher qualification requirements for those working in the industry. This will raise standards, but will also be a challenge for many consultants and operators.