Why Financial Technology Companies Are Now Targeting The Elderly, Not Just Millennials
Why Fintech Companies Are Now Targeting The Elderly
For a long time, fintech companies have seemingly overlooked the aging in favor of the millennials as the target population for their products and services. This is set to change. The reason? These companies expect the young to inherit the wealth accumulated by their parents.
However, the fintech companies now see that wealth as an opportunity to target the older population. Currently, very few companies offer financial services for the elderly. This is largely expected to change in the near future.
Every day, an estimated 10,000 Americans turn 65, as per the US Census Bureau. In 2016, the average net worth of these elderly families was slightly above $1 million. Fintech companies are now looking to facilitate the transition this wealth from the aging to the younger population.
According to the Wall Street Journal, fintech companies are now creating solutions that exclusively target the elderly. One such example is the recent launch of an account-monitoring tool that links parents’ accounts to their children’s by EverSafe. This solution prevents final overexploitation. Another example is the prepaid debit card offered by True Link Financial to allow millennials to control the expenditure of their aging parents. There are several other similar solutions under development by different companies.
While fintech companies are still struggling to establish trust with their target clients, they have shown significant potential to grow. This is because they are expected to solve the menace of financial overexploitation affecting the senior population. Indeed, exploitation is so much a challenge that there were over 3.5 million reported cases where adults aged over 70 lost an average of $43,000 each.
The greatest benefit of these upcoming solutions is their convenience; adult children can easily help their aging parents in budgeting from miles away using a mobile app.
The Potential Benefit of Integrating Blockchain Technology
The notable absence in these fintech solutions is blockchain technology. However, this is understandable because both are still upcoming. If blockchain was to be integrated, the solution would certainly become more efficient by a margin.