A new white paper from Netcetera explains why a rise in the number of older Europeans is good news for banks’ digital strategy – provided they get their digital offering for seniors right.
The senior demographic is growing across Europe
According to statistics from the European Union[1], more than one in five citizens across the bloc was aged over 65 in 2021, with those aged over eighty projected to grow from 6% of the population to almost 15% in the decades ahead.
Given the reluctance of this demographic to use digital solutions generally, banks should be thinking about how to adapt these solutions for seniors’ specific needs – especially when it comes to digital wallets, which form the cornerstone of most banks’ digitalization strategies.
As we explain in Talking about their generation: is your mobile app ready for seniors?, there are demographic, regulatory, and strategic pressures on banks to develop wallets that work for seniors.
Wallets for the Woodstock generation
At present, fewer than half of those aged over 65 currently use a digital wallet[2], compared to 80% of 35-50 year olds. Meanwhile, access to cash is declining and new payment methods emerging that are rooted in the digital world – and regulators are demanding that banks provide access to cash services to protect seniors’ ability to pay.
From the perspective of bank strategy, an easy-to-use, accessible seniors’ wallet is a winner.
As neobanks and FinTechs evolve their product offerings – to say nothing of “big tech” players like Google and Apple – banks are increasingly finding their core business under threat, and are responding by moving to digital service platforms and shutting branches.
Banks need to help seniors join the digital revolution, not just from an inclusion point of view, but because doing so will unlock a range of new, digital-only services for seniors that can be new revenue generators for banks.
The new white paper sets out the principles behind designing a successful digital wallet for seniors, from developing the user interface through to technical specifications and the need to base such wallets on fully flexible, modular architectures.
Netcetera has deep experience in developing flexible wallet solutions focused on user needs and tailored user experiences.
The company’s ToPay Mobile Wallet solution includes a fully-modular architecture that’s compliant with both iOS and Android operating systems and is compliant with the latest regulatory and security standards, including requirements for two-factor authentication (2FA) as mandated for example by the provisions of the EU’s second payment services directive (PSD2).
As Europe’s population ages and the senior demographic expands, making sure your digital products work for this segment is also a great strategic choice that will ensure the relevance and profitability of your services in the decades ahead.
Download a free copy of “Talking about their generation: is your mobile app ready for seniors?” now.
[1] See Eurostat, February 2022: Population Structure and Ageing
[2] See Marqueta, “Mobile Wallets after COVID-19”
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