BankSafe Insights for Financial Institutions

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Insights and Promising Practices

With two-thirds of all deposits controlled by the 50+, smart and savvy financial institutions are looking for new and meaningful ways to meet the needs of this important demographic. AARP has interviewed thousands of experts and published impactful research that is informing new services and approaches to working with consumers over the age of 50. These highlights from AARP’s research and interviews showcase the most important findings the financial industry should know.

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AARP’s research shows that 50+ consumers have clear preferences on their banking practices.

The 50+ own 67% of deposits in the U.S.
50% have been with their financial institution for 20+ years
4 out of 5 still conduct business at a branch, and more than half also bank online
70% say that branch employees recognize them and nearly 1 in 3 work with a banker they know
Majority use a range of services including direct deposit (83%), debit card (68%) and ATM (64%)

Innovation in Action:

Two banks in the United Kingdom, Lloyds and Barclays, received praise from their customers for providing additional time for transactions, verbally repeating statements for those with dementia, and offering to meet in a quiet place.

The benefits of addressing Financial Exploitation

Financial exploitation presents a significant threat to older Americans, their families and financial institutions. Addressing exploitation and preventing it provides benefits to institutions and consumers alike.

The average victim of exploitation loses $120,000 (almost what the average 50+ household has in savings).
Financial institutions lose $1 billion in deposits a year as a result of exploitation.
4 in 5 consumers prefer having accounts with institutions that proactively fight exploitation.
Trust increases 41% when their institution resolves an exploitation situation.

Innovation in Action:

The most successful BankSafe-trained financial institutions, including HSBC and Wells Fargo Advisors, train all their employees starting from the top—the CEO, vice presidents, C-level executives, and compliance and risk officers. With established prevention programs, these financial institutions help protect their customers from becoming victims of exploitation and help staff recognize situations that need to be reported to Adult Protective Services.

Adjustments to the banking environment support consumer needs and preferences.

Prepaid cards and wearable bands loaded with limited funds
High-visibility debit cards with color contrast and enlarged fonts
Signature cards that don’t require long passwords
Biometric fingerprinting to protect cards and remove the need to remember a PIN
Improved processes for powers of attorney

Innovation in Action:

After taking steps to improve accessibility, London-based Lloyds Banking Group saw a 60% reduction in complaints related to clients with dementia and their caregivers—and these steps earned over 18.3 million media impressions worth almost $1 million.

Training and Resources - save money graphic

Effective training and resources arm employees with the skills to take action and appropriately engage in order to save consumers– and financial industry organizations – money. The financial industry is taking action to create a culture that supports fighting exploitation:

Financial exploitation training
Consumer-interaction and senior-sensitivity training
Branch champions drive age-friendly and dementia-friendly principles from institution-wide guidelines
Employee incentives for reporting exploitation
Centralized place for employees to report

Innovation in Action:

Two small community banks in Pennsylvania and Texas who trained frontline employees on preventing exploitation saved $1 million in deposits in the first year after the training.

Banks, credit unions and investment firms are innovating a number of promising new services and processes to flag cases for immediate action that can prevent exploitation before money leaves the account.

Data analytics to identify consumers at risk
Read-only feature that allows trusted loved ones to track account movements without giving access to funds
Preventing the sale of inappropriate products to those with dementia
Consumer needs and preferences form

Innovation in Action:

Using data analytics, Barclays was able to identify 20,000 of its 15 million accounts as high risk for exploitation and is proactively helping these customers protect their assets.

Empower Consumers and the Community graphic

Community and consumer education initiatives empower individuals to protect their assets and grow a network of stakeholders committed to fighting exploitation.

Educate older consumers about online banking
Community speaker series on preventing exploitation
First responder training
Free resource books and guides for older residents and their caregivers

Innovation in Action:

Utah’s Bank of American Fork conducted outreach that generated 1 million media impressions in a state with just 3 million people.

BankSafe Resource Library

The training includes a library of resources that banks, credit unions and investment firms can use to help better prepare their staff and institution to protect consumers from exploitation. AARP has made these resources available below so that you can put some of the tips and promising practices from the training to work at your institution now.

Resources for Employees

Frontline employees are often in the best position to recognize and prevent financial exploitation. The BankSafe training is aimed at empowering these individuals to identify signs of exploitation, interact with consumers and take action when needed.

Banks

Spotting Red Flags

Deciphering Dementia in Your Customers

Know Suspicious Activity When You See It

Asking the Right Questions

Dementia Friendly Hints and Tips

Credit Unions

Spotting Red Flags

Deciphering Dementia in Your Members

Know Suspicious Activity When You See It

Asking the Right Questions

Dementia Friendly Hints and Tips

Investment Firms

Spotting Red Flags

Deciphering Dementia in the Financial Services Industry

Asking the Right Questions

Dementia Friendly Hints and Tips

Resources for Financial Industry Organizations

Financial industry organizations can take organization-wide steps to prevent financial exploitation. The tip sheets below offer advice on self-audits, management processes and more to help ensure accounts are protected.

Banks

The Business Case for Joining the Fight

Financial Institution Self-Audit Checklist

Account Features to Protect Your Customers

18 Promising Practices in Age-Friendly Banking

Creating a Dementia Friendly Environment

Credit Unions

The Business Case for Joining the Fight

Financial Institution Self-Audit Checklist

Account Features to Protect Your Members

18 Promising Practices in Age-Friendly Banking

Creating a Dementia Friendly Environment

Investment Firms

The Business Case for Joining the Fight

Investment Firm Self-Audit Checklist

18 Promising Practices in Age-Friendly Banking

Creating a Dementia Friendly Environment

Resources for Consumers

Financial industry organizations that empower not only employees but also consumers to prevent exploitation help to further protect deposits and gain client trust.

Banks

Tips to Prevent the 13 Ways Con Artists Steal Your Money

Credit Unions

Tips to Prevent the 13 Ways Con Artists Steal Your Money

Investment Firms

Tips to Prevent the 13 Ways Con Artists Steal Your Money