The financial services sector is poised for substantial growth in the foreseeable future, thanks to its demonstrated ability to navigate uncertainty, embrace digital omnichannel strategies, and incorporate cutting-edge technologies.
To capitalize on this promising industry outlook, it could be wise to add fundamentally sound financial stocks- American Express Company (AXP), FirstCash Holdings, Inc. (FCFS), and EZCORP, Inc. (EZPW) to your portfolio for potential gains. Let’s understand this in detail.
While the Federal Reserve kept interest rates unchanged in November, Fed Chair Jerome Powell has insisted that rate cuts are not in discussion right now. This could continue to support the financial services sector as companies in this space conventionally thrive in a high-interest-rate environment.
Moreover, financial services companies have shifted their focus in recent years toward digital omnichannel strategies. Now, they are exploring emerging technologies such as meta-space and Web 3.0, poised to revolutionize the customer experience.
Digitalization, with a strong focus on cloud technologies, is becoming one of the prominent trends in the financial services industry. It promises contactless, highly efficient customer service and necessitates reallocating funds. This transformation would enhance industry competitiveness, adaptability, and customer-centricity.
Artificial Intelligence (AI) tools could also reshape the sector by optimizing risk management, fraud detection, compliance, and customer service functions. The financial services market is expected to grow to $37.48 trillion in 2027 at a CAGR of 7.5%.
Considering these conducive trends, let’s take a look at the fundamentals of the three Consumer Financial Services stocks, starting with number 3.
Stock #3: American Express Company (AXP)
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