Are you interested in starting a business in the financial services industry? Then below are ten small business ideas and opportunities in the financial services industry in 2020.
Even though the global economic meltdown of 2008 took its toll on the financial services industry in most countries, there is still enough room for new players in the industry and there are many open ways to take from the industry’s pie.
Aside the well-known businesses within the industry, there are many other businesses with huge profit potential. Most of these businesses came into being due to recent industry trends. If you are looking to start your own business within the financial services industry, then here are 10 in-demand, profitable, and low-risk businesses you should consider:
Top 10 Small Business ideas in the Financial Services Industry in 2020
1. Financial analyst service
The demand for financial analysts is on the rise due to the growth of complex financial investments and portfolios. Before now, most companies used to hire in-house analysts. But with most companies now taking every possible step to cut costs, they prefer hiring professionals on contract. If you have the required background and experience, you can start rendering financial analysis services for business on contract basis.
2. Personal financial advisor
With globally increasing quality of healthcare comes an increase in life expectancy, which means seniors are now forming a significant percentage of the population in most countries. Elderly people want a blissful retirement, so they seek advice from financial advisors on how to manage their finances and plan ahead of their retirement years. Similarly, businesses with financial issues hire financial advisors to help them get back on track.
3. Sales agent
If you pride yourself on the ability to convince anyone to take whatever action you expect of them, then chances are that you will make a successful sales agent. Businesses are always hunting for new customers in order to stay afloat, and they hire professional sales agents for this purpose.
Most businesses now hire sales agents on contract and reward based on performance. If you have what it takes to help businesses get more customers, starting your own sales and marketing agency can be financial rewarding and fulfilling.
Most banks and other loan-issuing institutions are becoming more and more reluctant to support small businesses—especially startups—with loan packages. They prefer reserving the funds for well-established businesses and brands because those ones will most likely be able to pay back on time.
However, to the rescue of small business owners, microfinance banks are becoming more popular. They issue loans with friendlier interest rates and they don’t discriminate. Starting a microfinance bank requires much less startup capital than a traditional bank does. So, the microfinance banking sub-sector is easy to break into.
5. Asset management
Business within the financial services industry set aside a significant portion of their budget for asset maintenance and management. Since every business has assets to manage and protect, there are huge profit opportunities for asset maintenance experts.
If you have several years of experience in a particular field, such as marketing, business planning, and so on, you can turn that into a money-spinning business. Business owners, especially those with little experience, are constantly in need of expert advice on various aspects of business. And they are ready to pay for quality advice that will help grow their businesses.
Due to the sorry state of the economy in many countries, businesses are now cutting payroll costs by turning away from hiring many in-house staff. Rather, they now outsource many tasks to third-party business process outsourcing services. This way, business owners and managers can rest assured that their tasks will be handled professionally while they concentrate on other important aspects of their businesses.
8. Online marketing service
As businesses become more aware of the effectiveness of the internet as a lead generation tool, the demand for online marketing experts is on the high. People now search the internet for products and services they need. And they will most likely patronize businesses will stronger web presence.
Content writers, copywriters, search engine optimization experts, website designers, marketing automation experts, etc; all offer online marketing services.
9. ATM engineering
With ATMs everywhere, the reason why ATM engineers will be in demand is just obvious. ATMs belonging to banks and other financial institutions need servicing and repair at different points in time, leaving huge profit opportunities for experts in ATM installation and repair.
10. Insurance underwriting
Insurance underwriters work for insurance companies by helping them accept or reject risks and decide if insurance cover applications should be accepted or rejected. Insurance underwriting can be done as a freelance business, which means the underwriter can work for multiple insurance companies at the same time. If you have a solid background in insurance, then consider starting your own insurance underwriting agency.