The finance category is a broad one that includes multiple facets of characteristics and behaviors. In this blog post, we explore various demographic groups and their top priorities when it comes to finance.
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Young Adults: This has historically been an opportune segment for credit card companies, as this demographic is looking to build their credit as they go out on their own. Young adults are also interested in student loans, insurance, and eCommerce Services (i.e. PayPal, Apple Pay).
Young Professionals: Research shows that 29% of Millennials say their hesitation to employ a financial planner is induced by fees and costs, followed by fear (16%), and the ability to ‘do it themselves’ (10%). Many of these individuals are also turning to Robo-advisors for their asset management needs, due to their low cost and self-sufficient nature.
Middle-aged Adults: 52% of Americans have life insurance. The life insurance target market includes U.S. adults in the 31–45 age group. These consumers are in the process of getting married, having children and buying homes. Boston Consulting Group data shows that just before the pandemic, 44% of consumers bought life insurance policies in person. After the pandemic started, 38% purchased through a hybrid process that included an online element. However, 41% of Americans would rather discuss their insurance needs in person.
Parents: This group is keen on information about different types of insurance related to taking care of their children, including saving money for their children’s education and college tuition, and to help them get started as young adults.
Stock Trade Audience: The US has one of the highest rates of adoption for stock trading, with over 50% of the population owning stocks. The top stock trade apps are Robinhood, Cash App, and eToro.
Retirement-aged Adults: More than 54 million adults ages 65 and older live in the United States today (16.5% of the nation's population). The states with the largest elderly age group are Maine (21.8%), Florida (21.3%), and West Virginia (20.9%). The states with the smallest elderly age group are Utah (11.7%), Alaska (13.1%), and Texas (13.2%). Priorities for this group include retirement security, grandchildren and their financial needs, and the community benefits of switching from a large bank. In 2015, only 27% of adults 65 and over owned smartphones.