Why Banks Should Stop Chasing Youth and Target Aging Americans Instead
Banks and credit unions are overlooking a powerful demographic with far greater immediate potential: older Americans. Baby Boomers and the Silent Generation control over 65% of U.S. wealth, and by 2034, older adults will outnumber children for the first time. This "silver tsunami" represents not just a commercial opportunity but a potential driver of industry transformation. Financial institutions can capitalize by embracing the complex needs of older clients through specialized financial wellness programs, omnichannel experiences that blend digital and in-person service.
By Mark B. Egan
In recent years, many banks and credit unions have treated younger customers — Gen Z and Millennials — as a strategic imperative.
The business case sounds compelling: By attracting young customers with a combination of physical presence and digital experience you can start a profitable relationship that would last for many years. But in courting youth, financial institutions may overlook a powerful, underserved demographic: older Americans.
This isn’t just about shifting your focus — it’s about seizing a market opportunity that could redefine your competitive edge. Consider the facts:
Graying Americans control most of the wealth of the world’s richest economy. The Silent Generation (born 1928-45) still owns 13.1% of U.S. wealth; Baby Boomers (1946-64) hold nearly 52%; and Gen X (1965-80), nearing retirement, controls another almost 26%. Millennials (1981-1996), meanwhile, own just 9.4%.
The U.S. Census says that, by 2030, one in five Americans will be of retirement age and by 2034, older adults will outnumber children for the first time. With fertility rates falling and people living longer, age-distribution charts are starting to look less like squat pyramids and more like tall obelisks, each generation stacked on top of the other. Such demographics suggest that seniors will almost certainly present a better opportunity for FIs than chasing hard-to-win younger customers.
The U.S. Federal Reserve, which has been writing about the so-called silver tsunami for several years, sees the shift not just as a commercial opportunity but as a potential driver of industry transformation. Not only will this cohort be a key to future banking success, the Fed writes, but it will "challenge conventional banking norms, changing the way community banks and other financial institutions serve their customers."
To be sure, the new entrants into the banking world are Gen Z. It makes sense to attract them as net new customers that will build the very long-term growth of your financial institution. But it will be decades, perhaps, before they can bring the same level of loyalty and deposits you are likely to get from older customers. So any focus on the Gen Z that comes at the expense of winning and retaining your older customers can backfire.
Meanwhile, really leaning into attracting and making your older customers happy can continue to pay off for many years to come. For financial services leaders interested in embarking on this journey, here are five ways to position your institution for success.
Generational Targeting: Flipping the Script
| Older Gens | Younger Gens |
|---|---|
| Higher average deposit balances | Lower deposit balances and wealth accumulation |
| More stable income sources (e.g., pensions, retirement funds) | Income variability due to gig work or job changes |
| Lower default rates on loans | Higher loan default risks |
| Stronger loyalty to their primary bank | More likely to switch banks for better digital experiences |
| More likely to use multiple banking products | Less engagement with traditional financial products |
| Prefer in-person and personal service, reinforcing relationships | Prefer digital-only interactions, reducing personal banker relationships |
| More predictable financial behavior | Unpredictable financial habits and spending patterns |
1. Embrace Financial Complexity
Older customers have increasingly complex financial needs, from managing inheritances and funding healthcare to retirement planning and wealth transfer. Yet, many financial institutions offer generic products that fail to address these nuanced challenges.
Americans are looking for more integrated financial solutions. A 2023 McKinsey study found that 47% of consumers now prefer consolidated financial services — up from 29% just five years earlier, a 60% increase. Despite this, many financial institutions overlook older customers, missing an opportunity to provide tailored support.
Opportunity: Financial institutions can differentiate themselves by offering specialized financial wellness programs focused on estate planning, healthcare, and intergenerational wealth transfer. This is particularly critical given that 52% of wealthy Americans lack the three basic elements of an estate plan — a will, an advanced healthcare directive, and a durable power of attorney — according to a Bank of America survey. Also: Hosting in-person or virtual seminars on these topics can position your institution as a trusted advisor. Encouraging multigenerational participation not only strengthens relationships with existing clients but also creates opportunities to attract younger family members as future customers.
2. Invest in High-Touch
While digital banking is essential, human interaction remains just as important. An AARP study found that 85% of adults over 50 visit their bank or credit union for significant financial matters — or even just for the social connection. Younger customers aren’t abandoning branches either, with 75% still choosing in-person visits.
Opportunity: Build an omnichannel model that allows older customers to move seamlessly among digital tools and in-person interactions, ensuring that information shared online, over the phone, or in a branch is integrated and not lost. Consider offering virtual appointments with dedicated advisors who specialize in long-term financial planning and wealth transfer, reinforcing trust and deepening customer relationships.
Want to learn more about segmentation strategies?
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- Don’t Wait for the ‘Great Wealth Transfer’ – Help Younger Customers Reach Goals Now
3. Rethink Marketing Messages
Too many marketing campaigns rely on outdated stereotypes, depicting older customers as frail or disconnected from technology. In reality, today’s older Americans are active, tech-savvy, and financially engaged.
Opportunity: Shift the narrative by celebrating longevity and independence. Showcase real stories of older customers starting businesses, investing in their families, or reaching new milestones in retirement. Use authentic, inclusive language and imagery — because no one needs another stock photo of a gray-haired couple watching the sunset from matching Adirondack chairs.
4. Address Generational Bridges
Older adults are deeply invested in their families’ financial well-being, often helping younger generations with college tuition, home down payments, or even everyday expenses. This dynamic creates a unique opportunity for banks and credit unions to deliver multi-generational value.
The website Senior List makes the case: "Despite concerns about their own financial stability and the possibility of outliving their savings, 96% of grandparents still spend significantly on their grandchildren." On average, they contribute nearly $4,000 per year, with one in four cutting back on their own expenses to support younger family members.
Opportunity: Financial institutions can cater to this reality by offering family-focused services, such as joint savings accounts for grandparents and grandchildren or estate planning tools. Position these offerings as a way to strengthen family bonds while ensuring long-term financial stability.
5. Champion Financial Inclusion for Older Adults
Ageism in finance is real — and it’s costing financial institutions more than they realize. A study by Bain & Co. found that most banks exhibit unconscious age bias. For example, because banks often assume older customers aren’t interested in digital tools, only 17% of older customers reported receiving any guidance on using their bank’s mobile app, compared to 26% of younger customers.
Opportunity: Differentiate your institution by actively championing financial inclusion. This could mean improving the usability of digital platforms with simple changes like larger fonts, intuitive navigation, and streamlined app interfaces. It could also involve hosting workshops to help older customers confidently engage with digital banking. By making these adjustments, you position your brand as one that values and supports every customer — regardless of age.
Differentiated Targeting
Targeting older customers is smart business. While other institutions chase Gen Z with flashy advertising campaigns that may only yield short-term gains, smart institutions can instead build a foundation of loyalty, trust, and stability with a demographic that is growing both in size and influence and wealth saved.
By prioritizing older adults, you’re not just differentiating your institution, you’re future proofing your business. Rather than seeing older customers as a challenge, instead celebrate the long-lasting relationships that banks and credit unions can build with customers who have spent decades building their lives, their wealth, and their communities — often all with the support of the same financial provider. The opportunity is there, embrace it!
