A new breed of financial-services firm has emerged after years of industry consolidation. Through mergers and acquisitions, companies like J.P. Morgan Chase and Citigroup have transformed themselves into large financial conglomerates that now offer a wide array of services, including private and commercial banking, lending, insurance, and asset management.
As regulatory barriers continue to fall, firms are diversifying and entering new markets in order to keep customers, reduce risks, and stifle competition. However, these newly merged firms face the challenge of integrating their technology and resources. A number of startups are developing enterprise software that helps financial-services firms incorporate their newly acquired businesses. Other upstarts like S1, Corillian, and Digital Insight enable customers and employees to access and organize financial information online.