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Fintech appears to offer very little to the older consumer but at last the gap is starting to close

The fintech revolution has transformed the way we bank, invest, and manage our finances. But while fintech has been embraced by younger consumers, older adults have been slower to adopt these new technologies.

A survey conducted in 2022 by PWC for the 2022 Global Fintech Adoption Survey* highlighted the clearly highlighted this gap:-

  • 18-24  66.6%
  • 25-34  62.3%
  • 35-44  51.4%
  • 45-54  34.4%
  • 55-64  26.9%
  • 65+     16.7%

*15,000 consumers in 15 countries 

These surveys all show that younger adults are more likely to use fintech than older adults. However, the gap between younger and older fintech users is narrowing. As more and more older adults become comfortable with technology, we can expect to see an increase in the number of older adults using fintech.

Today, younger adults are more likely to use fintech than older adults. This is likely due to a number of factors, including:

  • Technological familiarity: Younger adults are more familiar with technology and are more likely to use online and mobile apps.
  • Financial needs: Younger adults are more likely to be saving for retirement or other financial goals, and they may be looking for more affordable and convenient ways to manage their finances.
  • Perception of risk: Younger adults may be less concerned about the risks of using fintech, such as financial fraud.

However, the gap between younger and older fintech users is narrowing. As more and more older adults become comfortable with technology, we can expect to see an increase in the number of older adults using fintech.

There are a number of reasons for this.

  • First, older adults are more likely to be comfortable with traditional banking methods. They may have been using the same bank for decades and have a relationship with their banker. They may also be less comfortable with online banking and mobile apps.
  • Second, older adults may have different financial needs than younger adults. They may be saving for retirement, paying for long-term care, or managing chronic health conditions. Fintech solutions that are designed for younger consumers may not be as relevant to their needs.
  • Finally, older adults may be more vulnerable to financial fraud. They may be less likely to be aware of the latest scams, and they may be more likely to fall victim to them.

As a result of these factors, fintech tends to offer little to older consumers. Many fintech companies simply don't see them as a target market. They focus on younger consumers who are more likely to be early adopters of new technologies.

However, there are a growing number of fintech companies that are starting to pay attention to the needs of older adults. These companies are developing solutions that address the specific challenges faced by this demographic.

For example, some companies are offering financial planning tools that are designed for older adults. These tools can help older adults assess their retirement savings, plan for long-term care, and make informed investment decisions.

Other companies are offering fraud protection services that are specifically designed for older adults. These services can help older adults protect themselves from scams and identity theft.

Still other companies are offering mobile apps that make it easier for older adults to manage their finances. These apps can help older adults pay bills, transfer money, and track their spending.

The fintech revolution is still in its early stages, but it has the potential to revolutionize the way older adults manage their finances. As more fintech companies start to focus on the needs of this demographic, we can expect to see even more innovative solutions that make it easier for older adults to stay financially secure.

Here are some of the key issues that fintech needs to address in order to better serve older consumers:

  • Accessibility: Fintech solutions need to be accessible to older adults, who may have difficulty using computers or mobile devices. This could mean offering text-based interfaces, providing customer support by phone or mail, or making it easy to set up automatic payments.
  • Security: Older adults are more vulnerable to financial fraud, so fintech solutions need to be highly secure. This could mean using two-factor authentication, storing data in encrypted form, and monitoring for suspicious activity.
  • Education: Older adults need to be educated about the benefits and risks of fintech. This could mean providing educational materials, offering training courses, or partnering with community organizations.
  • Regulation: Fintech companies need to comply with all applicable regulations. This could mean obtaining licenses, conducting background checks on employees, and reporting suspicious activity to law enforcement.

By addressing these issues, fintech can play a significant role in helping older adults stay financially secure.

In addition to the above, here are some other ways that fintech can better serve older consumers:

  • Personalization: Fintech solutions should be personalized to the needs of each individual older adult. This could mean offering different features and options based on age, income, financial goals, and other factors.
  • Simplicity: Fintech solutions should be simple to use and understand. This is especially important for older adults who may not be as familiar with technology.
  • Support: Fintech companies should provide support to older adults who need help using their products and services. This could include offering customer support by phone, email, or chat.

By taking these steps, fintech can make it easier for older adults to manage their finances and stay financially secure.

 

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David Hensley
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David Hensley

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Enryo Limited

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Warrington

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