Once the recession is over and the markets begin to pick up, TowerGroup expects a new wave of mergers and acquisitions in the financial services industry, according to Mark Sievewright, president and CEO of TowerGroup.

The industry needs more mergers and acquisitions, Sievewright said. "Many sectors are now plagued by over supply, lack of investment dollars, slow revenue growth and intense competition for the same pool of customers," Sievewright said. "While choice of technology and products will increase [both] for financial service providers and their customers, there will ultimately be fewer financial providers to choose from."

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