5THINGS: Seniors and Banking
Melinda Deines discusses the five things that banks need to know about servicing seniors and retirees.
1. There are more of them than you might expect
Twenty-sixteen was an interesting year in Canada. It was the first year that seniors outnumbered children under the age of 14, and the U.S. and globally, we’re going to see the same thing happen by 2020. That trend is gonna continue for 30 to 40 years, so banks need to pay attention to this demographic. We’ve been really focused on Millennials, and we now really need to think about Boomers.
2. Boomers are really well-educated
This is the most educated demographic of seniors that we’ve ever seen, so a low-fee checking account probably isn’t gonna cut it. They’re going to come to you with questions. They’re going to be prepared. They’re going to be well-researched and they’re also going to expect really, really good customer service.
3. They’re interested in customization
I think a lot of people think that customization is really something Millennials want, but Boomers want it too. And as they move into their golden years, you’re going to want to think about digital apps for seniors who are losing their eyesight maybe. They’re having a bit of dexterity issues, and think about how seniors might want things customized for them as well.
4. Seniors crave digital banking
A lot of people think that because they’re older, seniors might not be interested or maybe they don’t have the experience for digital banking. And while there is a wide range of experience, seniors do want it. They just might not feel that they can do it, and banks can help with that. You need to be communicating that yes, seniors can use digital banking using age-appropriate communications that feature seniors, and show them how to use digital platform – using seniors to help seniors.
5. They want to know their money is safe
It’s estimated that seniors lose over $3 billion to financial fraud every year, and that’s a pretty significant number. Banks are at the front lines of this fight because they’re the guardians of most seniors’ liquid assets. So banks need to do more to help seniors.
A good start would be to check out award-winning app called EverSafe that helps seniors monitor their spending using algorithms and having other people monitoring as well. So keeping seniors safe and protecting their assets is something that banks really need to look at.
Are you interested in learning more about what customers want from their banks? We have resources: