Baby Boomers using a laptop for digital banking purposes.

Baby Boomers and Digital Banking: An Unexpected Partnership

Baby Boomers using a laptop for digital banking purposes.

Digital banking has been incredibly popular among members of Generation X, Millennials, and Gen Z. In fact, most people assume that those generations are the ones online banking is designed for. In reality, however, digital online and mobile banking offers a surprising appeal for members of all generations--including Baby Boomers. 

The truth is, Baby Boomers, in general, aren't really technophobes, and they aren't avoiding digital banking options. Most of them just haven't fully adopted mobile banking, instead preferring to use online banking options. Consumers 55 and up are often very open to new digital financial services and learning about the options available to them. With the right education, many Baby Boomers are open to using mobile and digital banking options. 

How Are Baby Boomers Using Digital Banking Options?

In 2019, more than 60% of Baby Boomers actively used online banking options. In 2018, however, only around 23% of Baby Boomers used mobile banking on a regular basis--about half the percentage of Millennials engaged in mobile banking activities. In general, Baby Boomers have proven slower to make the leap to those mobile banking opportunities. Around half of Baby Boomers, however, are cited as using their smartphones for banking and financial services. 

In short, Baby Boomers are actively using their digital devices to handle many of their regular financial transactions. They're engaged and ready to make the most of the convenience offered to them. Take a look at some of the features they're using on a regular basis:

Mobile Check Deposit

While many Baby Boomers are loyal to their home bank branches, they also see the many benefits of mobile deposits--including the convenience of being able to take care of that deposit from an app, rather than having to go into a store to handle it. 

Funds Transfers

Many Baby Boomers like the convenience of transferring funds from a digital platform--both between their own accounts and to the parents and adult children that they are often still assisting financially. 

A female Baby Boomer paying for a meal using digital wallet banking on mobile phone.Payment Options

Baby Boomers have learned to appreciate the convenience of paying bills simply and easily online. From loan payments to payments for their regular bills, they're eager to take care of those tasks from the convenience of an online platform. 

Easy Access to Account Information

Many Baby Boomers are well aware of the potential security threats to their account--and many of them, because they did not grow up as digital natives, are more worried about those threats than, for example, Millennials. Not only do they like to be able to access their account information easily and conveniently, 24/7, to address any potential security concerns, but they may also need the convenience of accessing that information any time they like for personal reasons. 

Security Alerts

Because of their awareness of those potential challenges, Baby Boomers like the idea of security alerts attached to their accounts--and many are eager to take new steps to help protect their accounts' security. They also like to use apps that provide a higher level of data security, including two-factor authentication or chip-protected cards that help prevent theft or copies. 

The Financial Challenges Baby Boomers Face

Baby Boomers are in the midst of a scramble to make sure they have enough set aside for retirement. Their generation has experienced a number of financial ups and downs. Not only that, many Baby Boomers are still in the sandwich generation: they may have children, including adult children, still at home, while still providing support for their aging parents. In spite of this, they continue to control much of the nation's spending power and, in many cases, have more disposable income than other generations. As a result, they face unique challenges that can change the way they approach online banking. 

Baby Boomers Are Looking for Financial Services and Advice

They want the opportunity to make critical investments, get financial advice, and break down their spending, all from their financial dashboard. In many cases, they want to be able to access answers fast, whether they're sitting down to check their balance quickly before making a purchase or examining their financial data to look for any inconsistencies. Mobile banking often provides access to that advice with the click of a link. By utilizing mobile banking technology, many Baby Boomers can gain better control over their finances, including the advice they need to get ahead during potentially difficult financial situations--and all without needing to set foot inside a physical bank.

Baby Boomers Remain Concerned by the Possibility of Fraud

Baby Boomers are the generation most often targeted by financial fraud. By stealing private information, hackers can gain access to their accounts and potentially drain them--and certainly steal money that Baby Boomers can ill afford to lose. As a result, most Baby Boomers look for digital banking options that provide a high level of security. They want fraud alerts, including account monitoring that can identify unusual behavior and immediate notifications if something does go wrong. 

Baby Boomers Want to Know That Their Accounts Are Secure

They're looking for a high level of network security, including firewalls specifically designed to protect their finances. They appreciate the security offered by advanced security options, including options like two-factor authentication, which can help protect their accounts and prevent unauthorized access. With these key security features, Baby Boomers are often much more comfortable with the ideal of digital banking in general, including mobile banking. 

Learn More About Digital Banking

Baby Boomers, particularly as they age, are fantastic candidates for digital banking. Online banking options, including mobile banking, make it easier than ever to access financial data from anywhere, providing an enhanced level of convenience. At the same time, many banks are placing security at the top of their priority lists, raising the odds that Baby Boomers will get the high-quality protection they need. Do you want to learn more about digital banking or how to use online and mobile tools to full advantage? Contact PrimeWay today to improve your understanding and get a better picture of the tools available to you. 

About the Author

Keith Huckabay


keith-huckabay

Take 3 parts Internet Junkie-4 parts Broadway Fanatic-1 part News Addict-2 parts Comedy Enthusiast and mix it with some ice in a blender and you get Keith. He is highly energetic and brings just a little bit of quirky to all he does. When he’s not marketing his pants off for PrimeWay, Keith likes to hold court with his friends over a nice dinner or traveling new places.