Financial Services

Continuing turmoil in global capital markets after the credit crunch of mid-2007 has clouded the short-term outlook, especially in investment banking. We believe, however, that corporate banking in Europe will benefit from several profitable growth areas over the next 18 months and that shrewd players should position themselves accordingly.

The looming retirement of the biggest demographic wave in our nation's history is triggering massive changes in the defined contribution market. McKinsey research shows the size of this market is likely to reach roughly $7.5 trillion to $8.5 trillion in assets under management by 2015. Beneath this robust growth, more fundamental changes will take place. The DC market will transform from an asset accumulation and record-keeping business to a broad platform for providing the products and services participants need to ensure lifetime retirement savings and security. Senior executives need not fear this transformation, but do need to act now to be sure their firms capture a fair share of future market growth.