The Internet is breaking down barriers of space, time and information between businesses and consumers. Capital markets firms are ramping up their international presence. But differences in culture and infrastructure increase the challenge of realising a global presence. Convergence among financial services is being driven by investor demand for integrated wealth management. Financial institutions modernisation will enable full integration of all financial services.
Consolidation is driven by the other forces.
The costs of technology supporting e-business and other infrastructure changes, such as shortened settlement cycles , are high, and create the need for greater economies of scale. The move toward globalisation has increased cross-border alliances.