Bridging the Fintech generation gap

In the rapidly evolving world of financial technology, one demographic has consistently lagged behind in adoption: older adults aged 59 and above. Data from a research study we undertook in 2024 showed that only one-third of this age group currently uses fintech services, compared to 85% of 18-25 year-olds. This significant disparity represents both a challenge and an opportunity for fintech companies. By strategically embedding products into existing platforms, businesses can potentially increase fintech use among older adults, tapping into a substantial and often overlooked market segment.

Understanding the Current Landscape

Before diving into solutions, it's crucial to understand the current behaviour and preferences of older adults regarding financial services:

1. Traditional Banking Preference: The survey shows that 57.2% of people across all age groups would be most comfortable using a super-app provided by a traditional bank. This preference is likely even stronger among the 59+ demographic

2. Desktop Usage: While mobile apps dominate younger age groups, 32.2% of those over 59 still prefer desktop access for online banking

3. Insurance Focus: Older adults show a higher interest in car and contents insurance compared to other age groups

4. Security Concerns: Across all age groups, the safety of financial details is the biggest concern (19.3%) when using financial super-apps

5. Limited Fintech Engagement: Only one-third of those over 59 currently use fintech services, indicating significant room for growth

The Embedded Product Strategy

Given these insights, embedding carefully selected products into existing, trusted platforms could be a powerful strategy to increase fintech adoption among older adults. Here's how:

1. Leverage Trust in Traditional Banks: With older adults showing a strong preference for traditional banks, fintech companies should consider partnerships that allow them to embed their products within these established institutions' platforms. For instance, a digital investment tool could be integrated into a major bank's online banking interface, allowing older users to explore fintech services within a familiar and trusted environment

2. Focus on Relevant Products: The data shows that older adults are particularly interested in certain types of insurance. Fintech companies could embed insurance comparison and purchasing tools directly into banking platforms. This approach not only provides value to the user but also introduces them to fintech capabilities in a context they find relevant and necessary

3.Prioritise Security and Transparency: Given that security is the top concern for all age groups, any embedded product must come with clear, easily understandable security measures. This could include prominent security badges, simple explanations of data protection practices, and easy-to-access customer support. Transparency about how the embedded product works and who is providing it is crucial for building trust

4. Offer Cross-Platform Accessibility: While younger users are mobile-first, a significant portion of older adults still prefer desktop access. Embedded products should be designed with a responsive, cross-platform approach, ensuring a seamless experience whether accessed via a mobile app, tablet, or desktop computer

5. Provide Educational Resources: While younger users are mobile-first, a significant portion of older adults still prefer desktop access. Embedded products should be designed with a responsive, cross-platform approach, ensuring a seamless experience whether accessed via a mobile app, tablet, or desktop computer

6. Start with Familiar Concepts: While younger users are mobile-first, a significant portion of older adults still prefer desktop access. Embedded products should be designed with a responsive, cross-platform approach, ensuring a seamless experience whether accessed via a mobile app, tablet, or desktop computer

Potential Impact and Benefits

Successfully embedding relevant, secure, and user-friendly fintech products into trusted platforms could significantly boost adoption among older adults. Here's why:

1. Increased Exposure: The survey shows that 77.3% of people would be more inclined to use super-apps if they offered a broader range of services. By embedding products, fintech companies increase their visibility to a demographic that might not otherwise seek out their services

2. Trust by Association: Leveraging the trust older adults have in traditional financial institutions can help overcome the initial scepticism towards fintech

3. Convenience Factor: 30.6% of users cited the convenience of accessing multiple functions in one place as the most appealing aspect of super-apps. Embedded products cater directly to this desire for convenience

4. Gradual Adoption: By introducing fintech products within familiar environments, older adults can gradually become more comfortable with these technologies, potentially leading to broader adoption over time

5. Improved Financial Management: As older adults become more comfortable with fintech tools, they gain access to better financial management capabilities, potentially improving their overall financial health

Redefining Financial Inclusion for the 59+ Demographic

The significant gap in fintech adoption among older adults represents a substantial opportunity for companies willing to tailor their approach to this demographic. By strategically embedding products into trusted platforms, prioritising security, and focusing on education and cross-platform accessibility, fintech companies can bridge this gap. Not only does this strategy have the potential to increase adoption rates, but it also provides valuable services to a demographic that stands to benefit greatly from improved financial technology tools. As the population ages and becomes increasingly digitally savvy, the companies that successfully capture this market segment now will be well-positioned for future growth and success.