The market is in transition. Several large-scale mergers and acquitions have reshaped the competitive landscape worlwide. In Europe, with the arrival of the Euro and the harmonization of the European Union regulatory structure, a new market is slowly emerging which will increase transparency and will simplify the distribution of products and services across national borders. Finally due to the convergence of fiscal systems the distinction between onshore and offshore banking will become less important. Not only the regulatory and political framework is undergoing rapid change.
Internet technology facilitates market entry for non- and near banks.
Banks and other traditional service providers are paralyzed by the threat of eroding margins that will result from the usage of new distribution channels. But threats are balanced by new opportunities. The segment of affluent clients is growing fast. The gravity center of the market will move from more passive old money investors to a generation of sophisticated new money clients. Pension reforms will channel funds into the investment sector and demand for new services like estate and financial planning will grow.