Demand rises for banking products that help young consumers manage parents’ finances

The trend: We’ve covered how parents of young adults worry about their children’s financial health. But the reverse is also true. Cornerstone Advisors’ report “The Boomer-ang Effect: Financial Institutions’ $1 Billion Opportunity in Senior Financial Management” found many young customers worry about their parents’ financial health, too.

• The September 2024 survey included 500 US consumers with a parent who’s at least 60 years old.

By the numbers: Four in 10 US consumers with parents aged 60 or over already help their parents with at least some financial tasks.

• 40% of those consumers believe that within 10 years, their parents will need to hand over the financial reins completely.
• 20% believe that within five years, they’ll have to manage their parents’ finances.

Baby boomers agree they’ll need their children’s help, but aren’t sure when.

What this means for banks: Consumers just want what’s best for their loved ones—and that’s how young consumers view their parents’ needs.

• A Kiplinger study found that 83% of millennials prefer that their parents have financial security, rather than pass along to them any inheritance.
• Many Gen Xers who provide for both their parents’ and childrens’ financial needs live paycheck-to-paycheck, per Newsweek.

These consumers appreciate banks that offer convenient solutions to mitigate their concerns about their parents’ well-being.

What consumers need: We’ve covered baby boomers’ migration to digital banking tools, which shows they are comfortable banking with mobile apps and online. Younger consumers who manage their parents’ finances also want digital tools that enable them to perform related tasks.

• Banks that already offer these solutions should target older millennials and Gen Xers with relevant marketing campaigns.