Profit gaining in bank sectors by financing for senior adults:
Contrary to what many may suppose, the retirement segment, far from being a nuisance, is a profitable and attractive business for banks. It is also known to be a sector that is gaining more and more weight in the local financial system.
Bank offering different retirement schemes/plans for senior adults:
Experts explain this phenomenon because of the significant increase in the number of retirees (with official facilities, in these few years the number went from making a profit of million dollars) and the gradual increases in benefits (pension benefits and pensions). The government is willing to approve the increase of retirements of the minimum wage. Specifically, the law proposed by the government seeks to increase the lower retirements; with improvements foreseen in more than 50% for the rest of the salaries. From the financial sector, they welcome the initiative and is that with a greater capacity of assets and an expanded universe, the segment of the elderly has become a subject of credit for banks, in which until little was not contemplated. A recent study revealed that financial institutions already allocate 20% of their loan portfolio to this sector. The increase in the salaries of retirees is an important driver to boost consumer credit and will have an increasing impact on these portfolios.
Offerings from the bank for senior adults:
The products they offer for the sector are usually basic: savings banks, credit cards and personal loans intended for consumption. Costs are often more expensive because insurance, such as life insurance, tend to be higher. But stand out is in the personalized attention that this niche requires. In these last few years, almost 80% of the portfolio of retirees already has savings banks to collect their salaries.
The increasing graph of service provides and profit gaining:
Today they are extremely more susceptible to being banked and are more accustomed to accessing financing. Although the average is low, it is a sector that consumes and has needs and requests loans. In other cases, between 30% and 40% of this portfolio requests a personal loan, with an average amount ranging of $ 4,500-5000. “Retail Banking indicated that approximately 20% of its portfolio of retiree’s requests loans and that they are growing at a rate of 4% per year. In general, the retiree asks for a 2020 Medicare advantage plans comparison or loan to buy a PC for his grandson, to make some home repairs or to resort to medical intervention. At the bank, they are very comfortable and satisfied with the niche and are opening exclusive centers for their attention.