Evaluate the implications for financial service providers to adapt to evolving current factors and trends.

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I am currently working as a trainee journalist for ITV and I have produced articles them and researched and provided production for the financial services in the UK. Word is getting around about my knowledge and understanding and the FCA has invited me to address its members. Following my research, I am now going to produce a report evaluating how changes might affect things like employment, products and marketing. I will evaluate the implications for financial service providers to adapt to evolving current factors and trends.

Demographics are likely to have impact on financial services provision. In the UK we have an ageing population problem and this has implications on the provision of pensions. Life expectancy for men is 78 and for women is 82. However, if you reach 65, it increases to 84 for men and 86 for women. Because we have an aging population it means people are living for much longer and puts strain on the government because they are forced to pay state pension which is £155.65 a week for a longer period of time. A change in demographics will change the provision of state pension. Before there was a big strain on the government because they were paying state pension for a long amount of time because people are living longer and there is an aging population. Because people are continuing to live longer and the life expectancy for men and women is constantly increasing the government were forced to increase the pensionable age. Currently the pensionable age is 65 for men and 63 for women but in 2018 it will be 65 for both men and women and in 2020 it will increase to 66 for both. This means they are paying state pension for less time saving their resources. Increasing the pensionable age will effect employment. People in the UK will be expected to work for a longer period of time; this is good because you are now contributing to the pensionable fund which means you have more money in time to come. However, as you get older, health decreases. And therefore, there is less point in having all the money to spend. Furthermore, a change in demographics will impact products and marketing. Occupation pension is now being advertised on TV and is being made aware of it existence and importance. Employees are now encouraged to contribute to their occupational pension as the employer will be willing to contribute also.
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Nature of work will also impact financial services. During a recession the unemployment levels increase because businesses are not doing well and not a large demand on goods and services which results in people becoming redundant. During this time people have less disposable income and as a result it means people don’t save a lot. This has direct impact on mortgages because people will struggle to pay off the mortgage repayments especially if they are unemployed; their property may get reprocessed. On the other hand, in a boom period, unemployment will be low and people will be have ...

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