What's Driving the Finance Revolution
DEMOGRAPHICS
Baby boomers are reaching their peak saving years in North America and Europe. That's sparking a wave of competition for investments. A growing middle class in emerging nations will also need financial services.
DEREGULATION
Restrictions separating banks, brokers, and insurers are eroding in the U.S. Europe's single currency is opening opportunities for transnational financial services. Japan's ''Big Bang'' will promote competition.
GLOBALIZATION
The world is moving toward common standards of accounting, corporate governance, and market valuation, making it easier to sell products, such as mutual funds, that can be adapted to local tastes.
RETIREMENT
Faced with bankrupt or inadequate pension and health systems, consumers around the world are turning to private insurance and pension funds. That will further boost demand for stocks and bonds.
TECHNOLOGY
Computers, the Internet, and toll-free phone lines are all slashing the cost of delivering financial services, such as bill payment. Already, some 30% of all U.S. retail stock trades now take place on the Net.
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