PEST Analysis on Finance Industry
Introduction
The finance investment industry is one of the largest and most pivotal throughout the globe. Given its importance, the sector is constantly changing and transforming in the face of numerous regulatory frameworks that directly and indirectly affects the whole industry or its parts. The industry comprises banks, consumer-finance companies, credit unions, stock brokerages, credit card companies, accountancy and insurance companies, among others. The huge size of the industry stems from the fact that these companies exist in all developed locations. However, they tend to concentrate in international financial hubs like Tokyo, London, Hong Kong, and New York. As already noted, the industry is heavily regulated. The interconnectedness of the companies and sub-sectors in the finance investment industry, however, articulates the effects of any policy, and makes it easy manage. As the industry continues to change day after day, it is important to analyze the trends not only because the industry impacts every sphere of life but also because investment is continually becoming popular in the modern world, hence, the need to understand the tenets of this industry. To this end, PEST analysis of the industry proffers immense importance both in the quest to plan one’s investment appropriately and ensure the investments offer higher returns. PEST analysis is one of the instrumentals tools whose effectiveness has been proved in examination of the big-picture of a phenomenon. The following discussion, therefore, seeks to analyze the political, social, sociocultural, and technological factors influencing the finance investment industry, with consideration of factors that may present a threat or opportunity for the industry.