Explainer: Five Megatrends Shaping the Rise of Nonbank Finance

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Explainer: Five Megatrends Shaping the Rise of Nonbank Finance

September 27, 2025--Half of all financial assets worldwide are now held and intermediated by companies that are not classified and regulated as banks
The global financial crisis of 2008 froze the financial system. Banks pulled back credit, families tightened their belts and companies laid off workers. It was a frightening time for everyone, and an extremely difficult moment for the financial services industry.

Today, the landscape of finance is quite different. Different types of investors and firms are providing businesses, consumers and governments with credit and liquidity. More than a billion more people have access to credit thanks largely to newer tech-based lenders. Families also have more options to finance purchases and to diversify retirement portfolios. Equity, fixed income, and derivatives markets have all seen strong growth.

But these developments have not been driven by banks. Instead, it is "nonbank" financial institutions that have stepped up, increasing their share of global credit and finance from 43 percent during the 2008 crisis to nearly 50 percent by 2023, our most recent data show.

This is a watershed moment: half of all financial services worldwide are now offered by companies that are not classified and regulated as banks.

Source: IMF.org

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