Subject The article considers financial convergence as a principal mechanism to enhance competitive ability of entities operating in various sectors of the financial market, and financial conglomerate as its major organizational form. Objectives The aim of the study is to reveal the nature of the financial convergence as a mechanism to increase the competitiveness of entities operating in different sectors of the financial market, and to describe the specifics of the financial conglomerate as a basic institutional and organizational form of financial convergence. Methods Based on the methods of systems and logical analysis, we detailed financial convergence and financial conglomerate concepts, identified major factors contributing to the financial convergence of the insurance and pension sectors of the financial market. Results We performed a comparative analysis of the financial convergence in a number of countries and regions; made a list of factors of the financial convergence of insurance and pension sectors of the financial market; identified specific parameters that determine the financial conglomerate as a major institutional and organizational form of financial convergence. Conclusions Financial convergence represents mutual penetration of the activity of earlier competing institutions operating in different sectors of the financial market. Financial conglomerate is the main institutional and organizational form of financial convergence. It reflects the specificity of the financial convergence, and is characterized by increased competitiveness of firms affiliated with the conglomerate, informal association of firms, and various forms of pooling the capital of the firms within it.
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