The influence of family members on retirees’ financial decisions
Posted: Sun Dec 22, 2024 6:04 am
The aging of the Brazilian population brings new challenges and opportunities, especially for the financial market, as it addresses a crucial issue: the influence that family members exert on the banking decisions of this public.
In this content, we explore how dynamics affect financial choices and how banks can adapt their strategies to better serve their 60+ users.
The profile of the Brazilian retiree
The demographic profile of Brazilian retirees reveals an increasingly significant and diverse population.
With the Brazilian population aging more and more each year and its age pyramid changing, we now have a society that is mostly older, with a 57% growth in the number of people 65+ in the last 12 years. As a consequence, this group of people tends not to be as adapted to the digital universe.
Currently, of the 15 most used banks in Brazil, 100% have robust digital initiatives, either as fully digital banks or with digital platforms from traditional banks.
This has a direct impact on the experience of retired users, who often face challenges when dealing with these digital interfaces due to their lack of familiarity with technology.
The role of family members in decision-making
With the digital factor, family members, especially children, enter get russian phone number online the process, playing a vital role in the financial life of this group.
According to the study " Jornada Bancária dos Aposentados " (Banking Journey of Retirees) carried out by MATH Group , in partnership with Bistrô Estratégia and Hibou, family members are frequently consulted before retirees make important financial decisions.
This influence is even more pronounced in decisions related to opening bank accounts, investments and the choice of specific financial products.
Examples of Family Influence
Opening bank accounts: Many retirees seek help from family members to open bank accounts, especially in digital environments. A lack of familiarity with technology is a major factor that leads retirees to rely on their children to manage this process.
Investment choices: Children often guide their parents in investment choices, helping them understand the risks and benefits of different options. This is crucial to protecting retirees’ savings and ensuring financial security.
Purchasing decisions: Family members' influence also extends to purchasing decisions, including major purchases such as real estate or automobiles. Children or other family members often help evaluate financial options and decide on the best payment method.
Opportunities for the Financial Market
Banks and financial institutions can gain great insights from this dynamic, starting with the development of products and services that consider the influence of family members.
Another important point to keep in mind is that, despite its convenience, the digital journey presents obstacles for this audience, and one of the crucial points is security. Many retirees are afraid to open their accounts by sending documents online due to fear of scams and fraud.
Furthermore, the complexity of online procedures, such as sending digital data, can be intimidating.
In the study released by MATH , other challenges that need attention are also observed. Among them:
Communication gap between banks and family members.
Lack of information and support to facilitate decision-making and customer satisfaction.
Decreased efficiency in the account opening process.
Impediment to the relationship of trust and loyalty.
Solving the main challenges.
It is easy to see that all the points mentioned will require active participation by family members in the processes. Whether it is in separating documents, downloading the application on a cell phone, or even accompanying the retiree, there is a significant influence that children and family members have on the decision-making of retirees regarding the choice of bank and the process of opening accounts.
To do this, we have separated some solutions that can be worked on, including:
Develop campaigns that recognize and value the role of family members in supporting retirees.
Produce guides and tutorials aimed at family members, explaining how they can help retirees open an account, use internet banking, and carry out transactions safely.
Implement customer support lines specifically for family members of retirees, where influencers can get answers to their questions and receive personalized guidance on how to assist the retiree in their banking interactions.
Finally, all this influence shows how a crucial aspect must be considered by financial institutions. Understanding this dynamic allows us to create products and services that are more aligned with the needs of this audience, ensuring a more personalized and efficient approach.
With the elderly population growing, adapting to these realities is not only a necessity, but a strategic opportunity and we talk in more depth about the topic in the study “The Retirees’ Banking Journey – Revealing the Hidden Influencers”.
In this content, we explore how dynamics affect financial choices and how banks can adapt their strategies to better serve their 60+ users.
The profile of the Brazilian retiree
The demographic profile of Brazilian retirees reveals an increasingly significant and diverse population.
With the Brazilian population aging more and more each year and its age pyramid changing, we now have a society that is mostly older, with a 57% growth in the number of people 65+ in the last 12 years. As a consequence, this group of people tends not to be as adapted to the digital universe.
Currently, of the 15 most used banks in Brazil, 100% have robust digital initiatives, either as fully digital banks or with digital platforms from traditional banks.
This has a direct impact on the experience of retired users, who often face challenges when dealing with these digital interfaces due to their lack of familiarity with technology.
The role of family members in decision-making
With the digital factor, family members, especially children, enter get russian phone number online the process, playing a vital role in the financial life of this group.
According to the study " Jornada Bancária dos Aposentados " (Banking Journey of Retirees) carried out by MATH Group , in partnership with Bistrô Estratégia and Hibou, family members are frequently consulted before retirees make important financial decisions.
This influence is even more pronounced in decisions related to opening bank accounts, investments and the choice of specific financial products.
Examples of Family Influence
Opening bank accounts: Many retirees seek help from family members to open bank accounts, especially in digital environments. A lack of familiarity with technology is a major factor that leads retirees to rely on their children to manage this process.
Investment choices: Children often guide their parents in investment choices, helping them understand the risks and benefits of different options. This is crucial to protecting retirees’ savings and ensuring financial security.
Purchasing decisions: Family members' influence also extends to purchasing decisions, including major purchases such as real estate or automobiles. Children or other family members often help evaluate financial options and decide on the best payment method.
Opportunities for the Financial Market
Banks and financial institutions can gain great insights from this dynamic, starting with the development of products and services that consider the influence of family members.
Another important point to keep in mind is that, despite its convenience, the digital journey presents obstacles for this audience, and one of the crucial points is security. Many retirees are afraid to open their accounts by sending documents online due to fear of scams and fraud.
Furthermore, the complexity of online procedures, such as sending digital data, can be intimidating.
In the study released by MATH , other challenges that need attention are also observed. Among them:
Communication gap between banks and family members.
Lack of information and support to facilitate decision-making and customer satisfaction.
Decreased efficiency in the account opening process.
Impediment to the relationship of trust and loyalty.
Solving the main challenges.
It is easy to see that all the points mentioned will require active participation by family members in the processes. Whether it is in separating documents, downloading the application on a cell phone, or even accompanying the retiree, there is a significant influence that children and family members have on the decision-making of retirees regarding the choice of bank and the process of opening accounts.
To do this, we have separated some solutions that can be worked on, including:
Develop campaigns that recognize and value the role of family members in supporting retirees.
Produce guides and tutorials aimed at family members, explaining how they can help retirees open an account, use internet banking, and carry out transactions safely.
Implement customer support lines specifically for family members of retirees, where influencers can get answers to their questions and receive personalized guidance on how to assist the retiree in their banking interactions.
Finally, all this influence shows how a crucial aspect must be considered by financial institutions. Understanding this dynamic allows us to create products and services that are more aligned with the needs of this audience, ensuring a more personalized and efficient approach.
With the elderly population growing, adapting to these realities is not only a necessity, but a strategic opportunity and we talk in more depth about the topic in the study “The Retirees’ Banking Journey – Revealing the Hidden Influencers”.