Developed world demographic trends threaten financial firms’ revenue growth

A dwindling number of workers in developed economies will support a growing share of retirees, and growth and profitability are declining for banks, insurers and asset managers. Young Kim of the Insurance team and Tomoya Suzuki of the Banking team examine how South Korea’s insurers and Japan’s regional banks are turning demographics into opportunities, while Dean Ungar of the Asset Management team zeroes in on US asset managers’ future.

Inside this episode:

• Young Kim of the Insurance team and Tomoya Suzuki of the Banking team examine how South Korea’s insurers and Japan’s regional banks are turning demographics into opportunities. (begins at 2:35)
• Dean Ungar of the Asset Management team zeroes in on US asset managers’ future. (begins at 11:35)

Related content:

• Insurers – South Korea: Aging population a key challenge despite some opportunities - Insurers face rising risks from a growing weakness in mainstream products, along with higher competition in longevity products, which could weaken their underwriting discipline.
• Regional banks – Japan: Population aging and coronavirus-driven digitization can create opportunities - Banks can benefit from growing demand for services related to population aging, while increasing adoption of digital banking services will enable banks to cut costs by using technology.
• Sovereigns – Global: Ageing-related credit pressure to rise in 2030s in advanced economies- Absent measures that raise productivity growth or reduce spending, the fastest-ageing economies face a weakening in economic and fiscal strength.
•  Asset Managers — US: Demographic trends point to future struggle to grow assets under management - Working-age population growth is slowing dramatically, the elderly population will grow significantly and live longer, and younger generations will be less wealthy.