Baby boomers in the USA put more money than trust in banks according to a recent survey conducted by Gallup.
Download the Gallup release here.
While millennials are a hot topic in all kinds of banking strategy meetings, Gallup’s research shows that baby boomers, because of their sheer numbers, are still the largest and arguably the most influential generation because of its strongest purchasing power with regard to various banking businesses, such as retail, wealth management, and even business banking.
Banks’ failure to earn this large demographic’s trust and satisfaction may be costing them money. The 2013 retail banking study shows that 12% of banking baby boomers are actively disengaged with their primary bank. If banks can convert their actively disengaged customers to fully engaged customers, Gallup research shows it could open up a market of at least $82 billion in deposits and $443 billion in investable assets in the U.S.
Banks need to design and sell financial products and services for older customers that are based on their life cycle needs and economic situations — for example, they might want to offer retirement planning products and advice, organize platforms for baby boomers to learn new tech apps, or help with choosing a health insurance product or wealth transfer planning.
At the same time, similar to customers in all other generations, baby boomers deeply appreciate individualized, customized service. Because baby boomers are such a large, diverse group, their banking needs can vary significantly. Each customer has his or her unique needs, and banks need to be fully aware of differences among individuals.
Although US focussed, I feel that many of these issues are applicable elsewhere in the developed world. But are the banks listening!?