The opportunity of longevity in Financial Services
Open Finance is True’s content series for brands and businesses in the Financial Services sector. This year, we have turned our attention to an issue much on the minds of our FS clients – longevity.
Increased longevity has been described as THE biggest business opportunity of the 21stcentury.
The number of people aged 60 or over is expected to exceed 20 million by 2030. These people are living longer and healthier lives than their predecessors and are increasingly unlikely to stop earning at 65.
They also control a 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 10 UK pensioners has 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, our research on the consumer inertia plaguing financial services highlighted the deep-set behavioral biases stopping people acting in their own financial best interests and taking up new services. We also saw 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, we 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, we set out to understand the impact of ageing on people’s financial behaviour with a particular focus on digital technology. We’ve researched older consumer's attitudes to financial services providers and the role of technology within the sector. We investigated their willingness to change behaviour and consider new financial services providers and the barriers that stop them. And we searched for ways that brands can better serve older audiences through digital channels.
As a result of the research, we understand 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 we gauged how well they feel they are catered for by financial providers, and their attitudes to the wave of emerging fintech brands. We also understand to what extent these attitudes vary across younger consumers through to over 80’s.
The results of our research will be ready to share in a written report and at events in Bristol and London from September. We’ll also be sharing our findings directly with our clients and future clients through workshops that are tailored to the context of their unique business challenges.
Get in touch with Tim if you’d like to receive event invites, a copy of the report and to discuss how a workshop could be relevant for you and your team.