The financial services industry has seen no shortage of enthusiasm for the millennial generation, with banks and start-ups all clamoring to be the first to understand and serve the needs of the young digital natives and the mobile first generation. But what about the rest of Americans?
Meet the most financially challenged generation in American history. There are over 111 million Americans age 50 and older, confronting a financial future with high anxiety, great struggle and kitchen-table economics that are more complex than any other generation has ever faced. Financial decisions are numerous and amplified in importance with longevity. Much is at stake.
Although the 50-plus segment represents only 35 percent of the U.S. population, its members account for $116.8 billion in revenue in 2017 for the traditional banking industry. They are avid users of digital tools, services and products, and they are increasingly finding that their needs are not met by bank offerings alone. As a result, they are forecasted to spend $15.3 billion in the fast-emerging alternative financial services section by the end of 2017.
This research is made available as part of AARP's Project Catalyst initiative. With Project Catalyst, AARP has convened the most innovative leaders in the health care industry to launch a pioneering program that gains valuable insights into 50-plus consumer behavior and usage of popular and new-to-market health-tech products, in order to help inform developers about how their products and services are working to improve the lives of Americans as they age.
Project Catalyst. 2017 Financial Innovation Frontiers. Washington, DC: AARP Research, April 2017. https://doi.org/10.26419/res.00300.001