Helping digitize a national pension agency to improve customer service

Europe’s population is aging, requiring national pension systems to adapt to meet the requirements of a growing customer base with diverse service needs. One European national pension agency sought to implement at-scale digitization and automation of payments after predicting a significant resource gap that could inhibit them from effectively servicing customers in the upcoming decades.

Since 2020, McKinsey has partnered with the pension agency to design an office to develop and implement a comprehensive digitization strategy, securing support and buy-in across the entire organization. Key initiatives have included:

• Establishing an AI-powered case prioritization system
• Digitizing customer service
• Automating internal department processes

Together, we identified and executed strategic initiatives and goals spanning various departments, from customer service to auditing.

• Improved service allocation: One million program participants annually are more likely to be matched with providers offering shorter wait times and higher quality, thanks to newly designed selection mechanisms.
• Upskilled workforce: Over 200 employees were upskilled in new ways of working, including data literacy and digital-first mindsets.
• AI-driven support: An AI-based support system was designed and piloted to address the anticipated employee gap by 2030 in a critical business area.
• Enhanced customer reach: Customer service reachability increased by 15%.

As a result of these collaborative efforts, the organization is better able to deliver its services and meet legal obligations despite the upcoming employee gap—safeguarding the financial and health well-being of aging populations.