Despite the popular belief of going after younger, millennial clients, a recent article by American Banker discusses the importance of older banking customers.
People age 55 and above are six times more loyal to their primary financial institution than younger customers, according to research by Accenture cited in the AB article. Older adults also choose banks based on their experience in the industry, not necessarily on their technology, much like millennials do, the article states.
One-fifth of people in their 50’s expect to never retire, according to the Federal Reserve’s older adult survey.
In addition to those worried about never retiring, many older adults are facing a harsh set of economic pressures and are seeking help from financial institutions who will understand their needs, aside from the just their financial needs. By meeting client’s needs, banks can win over and retain these types of customers, the article explains.
Seminars on relevant topics that are of interest to seniors and pre-retirees, such as planning for retirement or avoiding financial scams are great ways to market to the older generation and retain them as clients, the article points out.
Currently, large banks are working on gaining the trust of millennials, which makes sense when companies are using feature-laden technologies to appeal to younger customers, but if banks want long-term customers who will stick around, investing modestly in millennials and more heavily in older adults is the way to go.
The bottom line is that older people need assistance managing and planning for their retirement on every level, which makes them an important group to pursue for lenders, banks and other financial institutions.
Read the American Banker article.
Written by Alana Stramowski