Key trends in the financial services market Essay

Key trends in the financial services market - Essay Example The Harpenden Building society offers a range of financial services from primarily savings accounts and mortgages to business banking solutions.( Harpenden Building Society. 2010) This paper will examine a number of questions surrounding the performance of the Harpenden building society and some key trends in the banking and financial services market, as well as how the building society differs from traditional banks in the market, opportunities and threats facing the bank, a closer look at the success of the bank and how the society can succeed from a marketing standpoint. There are several key trends in the financial services market. One of the latest trends that is gripping the financial industry like a bruding storm is the level and impact of the global interest rate. ``As interest rates are expected to rise globally, albeit slowly, and current steep yield curves may soon flatten, such risks may materialise surrounding the performance   in the near future. At the same time, wea knesses in the banking sector still exist, especially for some segments of the European banking sector. While the effects of changes in interest rates and their structure on financial institutions differ, recent changes in asset and funding structures of banks make them generally more vulnerable to a changing interest rate environment. Currency risk exposure has also grown, and regional concentration may pose specific risks. An unravelling of carry trades will have a negative effect on some institutions.`` (OECD.2009)