Those aged over 65 are set to form an increasingly important part of Europe’s population in the decades to come.
Reasons your bank should adapt for older users
However, older users have to date been largely excluded from the digital revolution in financial services with consequences not just for access to financial services, but also for the health of your business as a bank.
In their new white paper, Netcetera outlines three reasons why your bank should be targeting those over 65:
Over-65s are projected to form a growing part of Europe’s population
According to 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. As access to cash declines and new payment methods emerge that are rooted in the digital world, there is a pressing need to ensure older users have access to financial services products that work for them.
Older users are among the most affluent populations in the world
Respected US think-tank the Brookings Institution says[2] that the over-65s are set to grow in spending power over the next decade, increasing their share of overall consumer spending by almost 50% in the next ten years as the populations of rich countries age and become more wealthy. With banks facing tough competition for consumer “share of wallet” from both FinTechs and Non-Bank Financial Institutions such as Buy-Now-Pay-Later players and others, it’s important to make sure your bank is serving the specific needs of this increasingly wealthy bracket.
Serving the over-65s isn’t just socially responsible – it’s good business
From the UK to Sweden and Norway, governments are now introducing legislation to make sure that older people’s access to financial services through branches and via the internet is protected. As Netcetera argues in their white paper, making sure this population has access to financial products and services tailored to their requirements will enhance customer loyalty and help boost revenues in the face of rising competition from new, dynamic entrants to the financial services market.
How to do it – an adapted digital wallet
In Talking about their generation – is your mobile app ready for older users? Netcetera explains how tailoring your digital wallet product to meet over-65’s specific needs will be central to success over the next ten years.
Since 2019, digital wallets have expanded from POS payments and loyalty applications to include peer-to-peer money transfers, recurring and installment payments, lending, bill splitting, and digital ID technologies.
What’s more, it’s predicted[3] that digital wallets could account for up to half of all consumer spending by 2030.
Despite such importance, fewer than half of those over 65 currently use digital wallets[4], compared to 80% of the 18-35 demographic – meaning that banks are missing out on revenue from an increasingly wealthy senior population.
From optimizing product design and user interface through to a flexible system architecture, Netcetera’s white paper outlines a range of steps banks can take to ensure seniors adopt and use digital wallet products.
With expertise in developing flexible wallet solutions focused on user needs and tailored user experiences, Netcetera combines the best practices for design outlined in their white paper with the flexibility to consistently deliver outstanding user experiences for banks’ end users.
Download your free copy of “Talking about their generation – is your mobile app ready for older users?” now.
[1] See Eurostat, February 2022: Population Structure and Ageing
[2] The Brookings Institution, 14 January 2021: “The Silver Economy is Coming of Age”
[3] See PCM, The Digital and Card Payments Yearbooks, 2021-22
[4] See Marqueta, “Mobile Wallets after COVID-19”
The post Three reasons why your bank should adapt for older users – and how to do it appeared first on Payments Cards & Mobile.
