Increased longevity has been described as THE biggest business opportunity of the 21st century.
The number of people aged 60 or over is expected to exceed 20 million by 2030. These people are living longer, healthier lives and are increasingly unlikely to stop earning at 65.
They also control the vast majority of the world’s wealth and investible assets. A recent Wealth and Assets Survey from the Office for National Statistics reveals that more than one in ten UK pensioners has a total wealth of £1 million+. More than a million of the UK’s pensioners are millionaires.
But the wealth gap is vast. One in eight pensioners has savings of less than £500.
Last year, digital agency True, researched the consumer inertia plaguing financial services. This highlighted the deep-set behavioural biases stopping people acting in their own financial best interests and taking up new services. It also showed that propensity to look at new options increased with significant life changes, e.g. going to university, getting a mortgage, or changing spouse.
Looking at this in the context of longevity, True are exploring a new question:
How can financial services brands be more valuable and relevant for customers in the age of longevity?
This summer, in partnership with insight consultancy, Strive, True set out to understand the impact of ageing on people’s financial behaviour with a particular focus on digital technology. They researched older consumers’ attitudes to financial services providers and the role of technology within the sector. They investigated older peoples’ willingness to change behaviour and consider new financial services providers and the barriers that stop them. And they searched for ways that brands can better serve older audiences through digital channels.
As a result of the research, True have a unique understanding of older audiences’ use of technology in managing their finances, including the potential role of assistive technology like Amazon’s Alexa, conversational UI or chatbots, AI or machine learning, and automated phone services. And they can gauge how well older people feel they are catered for by financial providers, and their attitudes to the wave of emerging fintech brands. True will also understand how these attitudes vary across consumers, from younger people to over 80s.
The results were shared in a written report and at the Financial Services: Digital Marketing Spotlight by Figaro in September. You can watch the presentation here. True will also be sharing findings directly with clients and future clients through workshops that are tailored to the context of their unique business challenges.
Get in touch with Bertie at True if you’d like to receive event invites, a copy of the report, or to discuss how a workshop could be relevant for you and your team.