Fintech over fifty: designing for LMI older adults

• Context
• The study
• Key findings
• Points to consider

Context

There are 56 million low- to middle-income (LMI) adults in the United States aged 50 and above. Of these, it is estimated that only one-in-six (17 per cent) are financially healthy. This group is particularly vulnerable to a range of financial health challenges, including increasing medical costs, unmanageable debt and inadequate savings. The difficulties faced by this group presents an important opportunity for financial service innovators to work with them and help to optimise their financial situation and in turn improve their financial health.

The study

This 2020 report from the Financial Health Network (FHN) and Chase aims to understand the range of attitudes, uses and barriers that influence older adults’ experience of fintech products and services. It outlines opportunities for fintech adoption among LMI older adults and provides strategies to embrace these opportunities.

To fulfil the research aims, the research partner Dalberg Design recruited 92 LMI individuals aged 50 and above. Demographics varied by geography, age, ethnicity, rural/urban and gender. In total, there were 25 individual sessions and 17 group sessions. Rather than interviews, participants engaged in interactive activities where they shared experiences and information about their financial situations and preferences for using technology. Researchers recorded participants’ reactions and ideas, and then synthesised them into a framework of themes and innovation opportunities.

Key findings

The report identifies four main barriers to adopting technology, and suggests four key opportunities to help users overcome each of these barriers.

• Barrier 1. Older adults seek to be confident users of technology on their own terms. Over 50s feel that fintech isn’t made for them.
  • Opportunity: Empower Users to overcome a lack of autonomy.
• Barrier 2. While fraud is a concern for LMI older adults, more significantly this group feel that financial products don’t align with their desire for granular control over their finances.
  • Opportunity: Put Users in Control to mitigate their concerns and boost interest in fintech.
• Barrier 3. Older adults have negative stereotypes about their tech abilities that don’t necessarily align with the reality of their tech usage.
  • Opportunity: Eliminate stigmas to show older LMI adults that they are valued users.
• Barrier 4. Older adults can see digital connections as being incompatible with their desire for social connections.
  • Opportunity: Foster connections between older adults using technology to establish fintech as a digital source of support for financial health.

Building on these opportunities, the report suggests 13 strategies, organised by the phases of the user journey, for designing fintech for LMI older adults.

Discovery

1. Make good use of established channels to foster confidence and trust.
2. Ensure marketing and messaging displays relatable diversity.
3. Communicate transparently to minimise concerns about risk and longevity.
4. Ensure product reviews and ratings are easy to access.

Onboarding

1. Treat personal information and security with care to demonstrate customer-value early in the relationship.
2. Offer tailored and customisable options early in the user-journey.
3. Integrate human touch points, so that users are reassured there is a ‘real person’ involved in their experience.

Navigation

1. Design intuitive interfaces and that are usable and easy to navigate.
2. Provide access to tutorials on how to use and navigate the fintech.
3. Give users control, by allowing them to pause, cancel or turn off automated processes that move their money.

Use

1. Provide clear confirmation of financial transactions that are accessible across both digital and analogue platforms.
2. Use a positive tone that ‘celebrates’ the accomplishments of older users.
3. Ensure financial and account information can be easily accessed.

• To support those aged 50 and above, innovators should incorporate these recommendations into their user testing for new and improved products.
  • This user testing should include LMI older adults to ensure that any gaps in understanding are not overlooked.
  • The report concludes by stating that it is more important than ever that financial health innovators actively seek to understand and design for this group of potential users of fintech.

Points to consider

• Methodological strengths/weaknesses: This qualitative report is based on a small number of interviews and observations and therefore cannot be seen as representative without further research and validation.
• Generalisability/ transferability: This report is of significant interest to anyone involved in designing and evaluating fintech solutions and looking to innovate within the fintech sector. It will particularly interest those interested in fintech interventions among LMI older people.
• Relevance:While these findings are based on fintech in the United States, many of the recommendations may be transferrable to the UK’s fintech sector.