Many banks are heavily bundling these silver services and products in branding initiatives (ie .. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 6 CaixaBank's Family Senior, Bankia Senior, Ibercaja Mayores and Santander Senior) designed to attract older customers with by increasing their visibility and importance within the bank. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 8 The consumption power of this group represents an important opportunity for banks to offer products specifically aimed at meeting their needs. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 9 in Spain given its focus on attracting millennial customers and trying to cut costs/increase efficiency.
BANKING OPPORTUNITIES IN THE SILVER ECONOMY 10 Silver services can also help mitigate the stigma that may be attached to some of the products that banks currently offer to seniors. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 12 – typically only between 20 percent and 60 percent of its actual value. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 13 allocated in advance for living and medical costs in case they develop dementia in the future.
KEY FINDINGS
We highlight 10 products in the insurance category, long-term care/dependency insurance highlights, with 6 product offerings across regions – especially the US, Canada, UK, France and Spain. The prevalence in the first two markets is related to the reduced role of the state in providing long-term care as part of the social safety net. From the perspective of insurers, medical advances and technological advances can inhibit disease progression, increasing life expectancy and potentially LTC costs for insurers in the future.
Targeted loans, such as bridging loans to cover an unexpected upfront cost (such as rent and the cost of short-term care while seniors or their family wait for confirmed funds to enter their account), or autonomy loans to cover the cost of physical or mental impairment , appears only 4 times within the survey in the USA, France, Spain and. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 17 Mexico, indicating that there may be an overlooked opportunity for banks in this space. Finally, other products such as prepaid cards and bank accounts for seniors were also less recurring, appearing only 3 times in the US, Singapore and Hong Kong.
PRODUCTS
CATALANA OCCIDENTE (SPAIN) – The bank's reverse mortgage product is available to individuals aged 65 and over whose homes have an appraised value of more than €200,000. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 25 However, this reverse mortgage is available for both homes and apartments. HEARTLAND SENIORS FINANCE (AUSTRALIA) – The Australian financial institution offers reverse mortgages for a variety of purposes, including debt consolidation, living expenses, home improvements, travel, medical expenses, elder care or purchasing a new car.
STANDARD LIFE (UK) – The insurance company offers a home return plan for customers who are at least 65 years old26. SUNLIFE (UK) – The insurer offers return home plans to people aged 65 and over. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 28 These annuities offer a guaranteed income until the death of the policyholder.
BANKING OPPORTUNITIES IN THE SILVER ECONOMY 30 UNICAJA (SPAIN) – The bank offers annuities as part of its services to seniors. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 32 must all be paid to the surviving members. VITALITYLIFE (UK) – The insurer provides cover for dementia and frailty as a supplement to its critical illness policies.
DAI-ICHI LIFE HOLDINGS (JAPAN) – The Japanese insurer and Neurotrack, a cognitive health platform, have jointly launched a dementia insurance product. BANKING OPPORTUNITIES IN SILVER ECONOMY 36 determines brain health and cognitive abilities. MIZUHO TRUST & BANKING (JAPAN) – The Tokyo-based bank offers a Dementia Support Trust service to its customers.
HSBC LIFE INSURANCE (HONG KONG) – The insurer offers a dementia protection product as a supplementary benefit to its EarlyIncome Annuity Plan. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 38 For retired customers, there were additional benefits associated with the loan offer. TRUE LINK (FINTECH)(US) – Fintech company offers Visa cards to protect elderly clients with dementia or other cognitive impairments without compromising their financial independence.
SERVICES
BANKING OPPORTUNITIES IN THE SILVER ECONOMY 46 BARCLAYS (UK) – The bank's Text Broadcasting Service has been developed to support telephone banking for customers with hearing or speech impairment50. CAIXABANK (SPAIN) – The bank initiated a program called "Level Zero" to reduce barriers to banking services for elderly customers52. BANK OF AMERICA FORK (USA) – The bank's third-party monitoring option functions as a "read-only" account management system.
BANK OF THE WEST (US) – The bank has introduced its “Be Aware” program to combat financial abuse of the elderly54. FIRST FINANCE (US) – The Texas-based bank has focused on preventing financial fraud against seniors56. WELLS FARGO (US) – The bank has launched its Elder Strategy Group to address both financial fraud and challenges related to cognitive impairment57.
US TRUST (USA) – A private bank provides a range of elder care services that go beyond just wealth or estate planning58. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 52 BNP PARIBAS CARDIF INSURANCE (FRANCE) – The company aims to improve the aging experience through a tablet application tailored and designed for the elderly, known as Génération Care. BANKIA (SPAIN) - The bank offers financial advisory services to clients approaching the age of 65, and advises on retirement and inheritance issues.
CAIXABANK (SPAIN) – The bank offers financial advice to customers approaching the age of 65 and advises on pension and inheritance issues. IBERCAJA (SPAIN) – The bank offers financial advice to customers approaching the age of 65 and advises on pension and inheritance issues. ABANCA (SPAIN) – The bank offers financial advice to customers approaching the age of 65 and advises on pension and inheritance issues.
UNICAJA (SPAIN) – The bank offers financial advisory services to customers approaching 65 years of age and advice on retirement and inheritance issues. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 53 HSBC (HONG KONG) – The Hong Kong bank has taken a comprehensive approach to ensure its banking services are age-appropriate. BARCLAYS (UK) – The bank has a dedicated team known as Digital Eagles supporting senior customers61.
DEMOGRAPHICS OF AGING
As Barclays points out, a smaller proportion of people will contribute to public funds than will use public funds for healthcare. This will affect jobs and growth, given that economic output is expected to decline in those countries where fewer workers are available and the labor force is declining. Finally, at the micro level, companies may face labor shortages and succession issues that could lead to consolidation or closure.
IMF studies show that the impact of population aging on financial intermediation (Japan) may manifest itself in less need for bank loans, more investment in securities and other fee-generating income sources, resulting in disintermediation financial crisis and a decline in bank balance sheets. Regulatory barriers to entry into the age-related segment of the banking market can be difficult, increasing the risk that this crucial segment of the population will end up being underserved. Despite the difficulties associated with the growth of the aging population, the elderly's share of assets and spending power also.
BANKING OPPORTUNITIES IN THE SILVER ECONOMY 64 means that the growth of the silver economy presents a wealth of opportunities for products, services and targeted investments within this segment - not least for the financial sector. According to Rothschild & Co, the over 60 segment, or Baby Boomers, who make up the silver economy, is the fastest growing consumer group in the world. The combination of an aging population, with diverse and often unmet banking needs, and a shift towards greater individual responsibility for retirement savings is creating many new opportunities in the space commonly referred to as age-friendly banking.
According to research by the Gerontological Society of America, if banks could engage 12 percent of disengaged Baby Boomers, they could generate at least $82 billion in deposits and $443 billion in assets. Seniors' risk protection also needs to increase, with approximately $1 billion lost by 50+ clients to fraud in the US alone. Looking at the US market, people aged 50+ own 67 percent of deposits, 96 percent of people over 50 bank, and people over 50 control more than 70 percent of assets.
These data indicate the opportunity to significantly increase deposits given the expected rapid growth in the senior population.
THEMES BEHIND AGE-FRIENDLY BANKING
BANKING OPPORTUNITIES IN THE SILVER ECONOMY 66 an annuity or the acceptance of the capital as a lump sum. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 67 help manage the impact of dementia through services and financial support. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 68 information to a caregiver, exposing the client and caregiver to financial and legal risks.
BANKING OPPORTUNITIES IN THE SILVER ECONOMY 69 background music should be kept low and a sign language interpreter should be available at the branch either in person or via video. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 70 bank branches and the ongoing migration of financial services to the digital world. Indeed, individuals over 50 own about 80 percent of the wealth in the United States.
Financial institutions and banks are in the business of growing deposits and assets under management. BANKING OPPORTUNITIES IN THE SILVER ECONOMY 71 As the vanguard of the financial system, banks occupy a key position in the battle against financial fraud. 3https://www.uria.com/de/oficinas/pekin/abogados.html?iniciales=JMP&seccion=publicaciones&id=1814&pub=Publicacion.
19 https://www.65ymas.com/economia/banca/caser-seguros-sera-la-primera-aseguradora-en-comercializar-hipotecas-inversas-en- espana_6231_102.html. 39 https://www.sunlife.ca/ca/Explore+products/Insurance/Health+insurance/Long+term+care+insurance?vgnLocale=en_CA. 49 https://www.barclays.co.uk/ways-to-bank/online-banking/pinsentry-audio-accessible-card-reader/.
54 https://webcache.googleusercontent.com/search?q=cache:Y967HhWo500J:https://www.frbsf.org/community- development/files/Age_Friendly_Banking_Jan2015.pdf+&cd=2&hl=da&ct=clnk&gl=nz.
