How Banks and Credit Unions Can Better Serve and Protect People 50-Plus

To better understand how consumers’ banking practices and experiences have changed over the last decade, AARP surveyed more than 2,000 adults ages 18 or older in June and July 2023 as an update to its 2014 survey. The research reveals generational differences in banking practices, experiences with financial exploitation, and the strong desire for age-friendly banking services and protections from exploitation.

Age-friendly Banking

Age-friendly banking principles help the financial industry better meet older consumers’ financial needs and safeguard their assets. AARP’s BankSafe Initiative was developed on this foundation and is focused on four core principles:

• Preventing financial exploitation
• Helping those with dementia
• Empowering financial caregivers
• Making the banking environment easier to access

Highlights

• One in two respondents were a victim or intended victim of financial exploitation
• More than 60 percent of victims 50+ were more likely to trust their financial institution based on how it handled financial exploitation, compared to just 41 percent in 2014
• More than nine in 10 (92 percent) adults 50+ want the employees of their financial institution to be trained to recognize and stop financial exploitation, up from 85 percent in 2014
• The majority of respondents 50+ are at least somewhat more likely to use a financial institution recognized as having taken proven steps to prevent exploitation

Read the report to explore more findings.

Conclusion

The insights gleaned from this research provide focus areas and priorities for financial institutions to cater to the diverse needs of consumers, regardless of age, thus fostering trust and resilience against financial exploitation.

Financial institutions should embrace a dual approach that caters to older adults’ preference for personal interaction while leveraging advancements in digital banking services. Increasing trust, effectively addressing financial exploitation, and offering age-friendly banking services will be pivotal in retaining older customers and attracting younger ones. Trusted organizations and the development of comprehensive financial caregiving services will further enhance the industry’s appeal and will contribute to the overall well-being of older customers.