Your customers and their demands are changing. Population growth and decline in different countries, combined with an ageing population around the world, will create a markedly different consumer market by 2050.
In many developed countries, the working population will decline significantly and this gap will need to be filled by immigration, later retirements and productivity gains, which could be accelerated by the growth of the digital ‘machine-to-machine’ economy.
While much has been made of the impact of ageing in the Western world, the most dramatic changes will be seen in emerging markets as birth rates and life expectancy around the world begin to converge.
The shifts in population and economic growth will be accentuated by talent migration as successful economies draw people from weaker counterparts.
Population growth against change in median age
By 2050, the number of people aged over 65 is forecast to grow by over 200% in China, India, Indonesia, Bangladesh, Pakistan, Brazil, Mexico and Colombia.
Population in the whole African continent is expected to more than double in the next 40 years.
Your business will need to anticipate demographic developments and bring products and services into line with the changing customer base in the markets you serve.
As people live longer and state support declines, the competitive frontline is likely to shift from lending towards helping people to fund and manage their retirements. Reputation and trust will be crucial in sustaining market share in an increasingly empowered and knowledgeable retirement market.
|If you have any questions, please contact
Global Leader Financial Services
Tel: +44 (0) 20 7213 3960
Author and Global Leader for Project Blue
Tel: +44 (0) 20 7804 0130
Q: To what extent will ageing impact the nature of the products and services financial firms need to develop?
the competitive front-line will shift from lending to helping people to fund and manage their retirements, with multiple new products and services being developed to facilitate this
products and services will evolve gradually to meet the needs of an ageing population
Products and services will largely remain the same going forward