Banking to Tomorrow’s Demographic Divide


Our world is rapidly aging. At the same time, the needs of a younger generation require the speed and convenience of today, and tomorrow’s, technology. With such an age gap in today’s society, we couldn’t help to think about how this demographic dichotomy will challenge, and ultimately reface, today’s banker and the banking/credit union industry.

So what, we are getting older? As our population ages, they will be moving from their homes to independent and assisted living facilities. Furthermore, we are living longer; which has led to insufficient retirement savings and increased medical costs; as a result, people need to work longer. Banks and Credit Unions might have to shift away from home and auto lending, to more creative products to help finance health care needs. Also, business lending could find opportunities with employers to create unique positions for our seniors to fill.

While catering to our seniors, banks also have to satisfy the needs of the under 40 crowd. This younger side of the age spectrum has an enormous desire for speed, convenience, and technology. They are constantly on the move; whether it is for their occupation or simply a desire to not “settle down”. Furthermore, almost all of their activities leave a digital footprint behind, allowing banks, and other companies, to tailor specific products/services according to their customer’s actions. While scanning the Twitter feeds and blogospheres, there seems to be central trending the topic for where banking needs to go, “Omni Channel Banking”. Most banks have multiple channels of banking products and services that they can offer to their customers, however, now they need to be able to offer their whole portfolio on ONE single, easily navigated platform.

There is no doubt that our world will be changing and evolving in the next 5-10 years; our banks, and bankers, will need to follow suit. So what will we want from our bank or credit union? We will want them to let us:

  • Deposit our check
  • Check all balances
  • Call up an instant video chat with a bank representative to apply for a credit card
  • Get an instant approval for that card
  • Have a coupon text messaged to us because the bank knew that we were about to walk into our favorite store
  • Pay for the item digitally while in the store
  • Instantly have funds transferred to pay off the credit card All being done on our smartphone, as we talk into our watch, while being 2500 miles away from the nearest branch…or from inside the nursing home.


1. CISCO IBSG, by Philip Farah, 01/12.

2. Governor Elizabeth A. Duke; the Future of Community Banking; February 5, 2013


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