Boomers Bank, but Don’t Trust

Gallup has been doing an ongoing series on the Baby Boomers;  Baby Boomers: The Largest Generation is “an ongoing series analyzing how baby boomers — those born from 1946-1964 in the U.S. — behave differently from other generations as consumers and in the workplace. The series also explores how the aging of the baby boomer generation will affect politics and well-being.” 

One of the series concerns Boomer trust levels in financial institutions. Baby Boomers Put More Money Than Trust in Banks:  Nearly One in Four Boomer Customers are Dissatisfied With Industry by Daniela Yu and Julie Ray note that Boomers are the greatest group “of banking customers in the U.S. … [with] [n]early nine in 10 baby boomers  [with] …  at least one checking, savings, or money market account at a bank or another financial institution… [b]ut … just 12% of baby boomers with active bank accounts trust banks a “great deal,” with the majority placing only “some” or “very little” trust in these institutions.”

What are the take aways from this Gallup poll?

While millennials are a hot topic in all kinds of banking strategy meetings, … boomers, … are still the largest and arguably the most influential generation because of its strongest purchasing power with regard to various banking businesses, such as retail, wealth management, and even business banking.

Given boomers’ significant purchasing power, banks’ failure to earn this large demographic’s trust and satisfaction may be costing them money. ..

Banks need to design and sell financial products and services for baby boomers that are based on their life cycle needs and economic situations….

[B]aby boomers deeply appreciate individualized, customized service. Because baby boomers are such a large, diverse group, their banking needs can vary significantly….