Unless you've been dormant for the last decade, it's pretty clear to all of us that there's a significant demographic shift occurring with consumers.

As Boomers get closer to retirement, Gen X & Gen Y (Millennials) are now the driving force behind the economy. Their expectations, mixed with an exponential growth in different parts of technology (storage, transistors etc.), are re-shaping industries including retail, financial services, healthcare, education & more as we know it. Here are a couple of interesting statistics:

In order to tackle this, financial institutions and retailers need to address the needs of every generation (and every account holder). This is a pretty daunting prospect and is in fact highly correlated to the #1 challenge banks face right now (satisfying more demanding customers & retaining their loyalty) according to Temenos via The Financial Brand:

For simplicity's sake, I'm going to address Boomers (part I) and Millennials (part II) in these posts. However, Javelin research does a good job of segmenting into the 4 categories below. I will refer to these segments throughout the two posts:

From what I have witnessed (although every consumer is unique), a large number of Boomers:

How Boomers Bank

While a lot still like to visit branches, here a number of facts about their use of digital channels:

How Financial Institutions Should Address Boomers

With 75% of account holders currently having 4 or more financial accounts (Accenture) and the average household having 8+ financial accounts (The Financial Brand), there is a huge opportunity for banks and credit unions here.

Boomers are concerned about their finances and for the most part place a lot of trust in their financial institution. If banks and credit unions can provide interactive tools that allow account holders to see all of their finances in one place and can be used in branches, online, smart TVs and on tablets, this could be a big win for the user and institution alike.

Account holders can collaborate on ideas with an advisor in the branch and then they can take these tools home to share with their families (and educate their children). These families can learn how to:

While financial institutions benefit from:

Final Remarks:
That is just one idea of how banks can target Boomers.

Do you have any thoughts on more?

Part II on Millennials will be released in the next week...