Older Adults Can Get Much More Out of FinTech

While most adults ages 50-plus have shopped online or monitored their bank account balances through an app or website, significantly fewer have explored the numerous other financial technology services available, AARP Research has found.

Financial technology, collectively known as FinTech, includes a wide swath of services designed to make handling money easier and faster. From the use of mobile phones and smartwatches to tap and pay for consumer products to more complex wealth-management and other tools, FinTech options are expanding rapidly.

Uptake of FinTech soared during the early months of the COVID-19 pandemic. In 2020, downloads of FinTech apps grew 132 percent across all platforms globally, and the use of digital payments took off. That growth has continued as mobile finance app downloads in the U.S. grew 3.9 percent in 2024, reaching 583 million.

AARP Research took a sharper look at the 2023 Fintech Attitudes and Adoption survey findings and discovered that adults age 50-plus are engaging with the simpler forms of FinTech, but that they aren't adopting the more complex tools. Adoption barriers include a lack of awareness and concerns about the trustworthiness of FinTech solutions.

Highly relevant to older adults, the survey also highlighted that available FinTech solutions are rarely used to help caregivers manage the finances of care recipients.

Opting Into FinTech

With seven in ten adults 50-plus reporting they use FinTech, most are engaged in basic tasks like checking bank balances (77 percent), paying bills (62 percent), and transferring money between accounts (61 percent). But FinTech provides opportunities for consumers to do significantly more, and many older adults are not taking advantage. Among the basic everyday functions with relatively low rates of use: depositing checks (done by 37 percent) and paying for parking, a taxi, or car service (22 percent).

FinTech use drops even more when the tasks become more involved. Just 13 percent have used financial technology to invest in securities, and less than 10 percent have applied for a loan using an online tool or app.

Building awareness

The survey revealed a lack of awareness in FinTech resources available, with most hearing about specific tools and resources via word of mouth from trusted friends and family.

More than half were unaware that FinTech products exist to help with debt management, wealth management, health care expenses, and comanaging someone else’s finances — a particularly important option for caregivers and their care recipients.

While half of caregivers say their duties involve managing their care recipient’s finances, just 9 percent report using FinTech to do so, highlighting a significant opportunity to raise awareness concerning FinTech tools that are useful in caregiving relationships.

Privacy concerns

For many older adults, privacy concerns are a key barrier to adopting FinTech. Half reported being worried about security and inappropriate use of their personal information. Malware and being hacked are concerns for 49 percent and 51 percent of older adults, respectively.

Methodology

The nationally representative survey (online and telephone) — which included 1,630 adults age 25-plus, 990 of which were 50-plus — was conducted February 13–28, 2023 via NORC’s Foresight 50+ and NORC’s AmeriSpeak® panel.

For more information, please contact Brittne Kakulla at bkakulla@aarp.org. For media inquiries, contact External Relations at media@aarp.org.