Addressing the Banking Needs of an Aging Population
In a world saturated with millennial-focused advertising, financial institutions are turning a blind eye to a very important demographic group: baby boomers. Many financial institutions place boomers in the bubble of anti-technology and dwindling funds. Not only are these stereotypes problematic, they can lead to a substantial loss in potential business.
Why Baby Boomers?
Contrary to popular belief, boomers continue to be avid users of digital tools, services, and products that assist them in managing their finances. While millennials have historically been considered the more tech-savvy generation, it has been shown that 71% of boomers bank online at least once a week. The consistency of their mobile device use is also growing rapidly.
Boomers also control over half of the nation’s valuable assets. Because this generation holds a large amount of financial wealth, they are the primary focus for criminals. Financial abuse against the aging population is pervasive, with $2.9 billion in fraud losses reported annually. Understandably, financial security is a top priority.
By hyper-targeting millennials and dismissing boomers, financial institutions are missing out on the opportunity to engage and retain some of their most valuable account holders. The addition of services that provide safeguards against identity theft and fraud are sure to increase revenue and improve retention rates.
The Richest Generation in History
Millennials may overshadow their 50+ year-old partners in population size, but they do not beat out boomers when it comes to wealth. Accounting for 35% of the population, boomers represent around $116 billion in revenue as of 2017. That number is expected to increase to $123.7 billion by 2021, and they are likely to remain the wealthiest demographic group in the nation until at least 2030.
Boomers are also more inclined to remain loyal to their financial institution than their millennial counterparts post-fraud — an impressive 58% have never switched institutions. In fact, more than half of fraud victims who switched financial institutions were 45 and younger.
However, when boomers do decide to leave, they take their assets with them. The result? Money left on the table.
Living in a Digital World
The era of true personal finance has arrived and consumers want to know they can manage their money anytime, anywhere. For boomers and millennials alike, tech and banking go hand-in-hand. Creating a streamlined and mobile-optimized experience ultimately appeals to both generations.
Data security is very important to this segment of the population, a fact that should not be overlooked. Unlike millennials who have grown up in a tech-heavy society, boomers have experienced a multitude of technological advancements during their lifetime. As a result, boomers are willing to adapt and learn but remain suspicious about the trustworthiness of devices, networks, and data banks.
Coupled with the rise of data breaches regularly in the headlines, financial institutions must not only showcase the convenience of the services they provide but also the security of their offerings.
Protecting Boomers (and Subsequent Generations)
As consumers increasingly rely on digital technologies, they are more susceptible to identity crimes that occur as a result of poor security.
Credit-monitoring services may seem like the best way to demonstrate protection of consumers’ data. However, relying solely on this service is not enough. Credit monitoring services will only alert consumers to a small proportion of fraud schemes. Credit-oriented safeguards will not stop other forms of identity theft, such as tax fraud and medical identity theft.
Offering technology-driven products that capitalize on innovations in the mobile space while providing an added layer of security can successfully drive increased adoption of new services. It also ensures a positive customer experience for all consumers, no matter what age bracket they fall into.
Partnering with the Right Provider
Comprehensive identity theft and fraud solutions can certainly help increase your bottom line and enhance your existing offerings. But in a world where identity theft and fraud are prevalent, it’s also about understanding the greater impact these crimes can inflict on your account holders.
Financial institutions have a unique opportunity to promote safe, secure and trusted services coupled with value-add offerings. This not only relieves financial anxiety for many but also engages account holders while addressing a growing concern.
At EZShield, we have 17 years of proven success in helping financial institutions protect their most valuable asset — their account holder relationships — through secure, digital identity protection and resolution services that enhance the value of existing products.
Learn more and schedule a demo today!