Banks rush to offer services for active older adults as life expectancy rises

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Major commercial banks are ramping up efforts to roll out products and services targeting active older adults who are either retired or nearing retirement, according to industry officials, Friday.

These people are generally aged 50 and above who continue to engage in economic and social activities even after retirement. With rising life expectancy, there is growing anticipation that their participation in various economic and social activities will become even more pronounced in the years ahead.

On Wednesday, Woori Bank introduced a new loan product aimed exclusively at customers aged 50 and older. This marks the first time the bank has developed a loan offering specifically for this age group.

Eligible applicants include wage earners with an annual income of at least 12 million won ($8,600) and a minimum of six months of employment. Public pension recipients — such as those receiving the National Pension — who receive at least 6 million won per year also qualify.

The maximum borrowing limit is set at 100 million won.

“Given the ongoing financial needs that arise for various reasons after the age of 50, the new loan is designed to provide a customized financial solution for middle-aged and senior clients,” a Woori Bank official said. “We will continue to enhance our range of financial products to better align with each phase of our customers’ life journey.”

KB Kookmin Bank established a senior business task force earlier this year as part of its broader push to strengthen services for older customers. The bank plans to expand its offerings beyond traditional pension management to include areas such as elder care and inheritance planning.

Similarly, Shinhan Bank created a dedicated task force focused on improving the interface and user experience of its services for older customers to enhance accessibility and usability. The bank also expanded its education centers to support their use of digital financial tools.

Lee Seung-lyul, third from left, then-CEO of Hana Bank, and veteran comedian Kang Ho-dong, third from right, pose during the plaque unveiling ceremony for the first Hana The Next lounge in central Seoul, Oct. 22, 2024. Courtesy of Hana Bank

Hana Bank, meanwhile, has been running a senior-focused brand, called Hana The Next, since last October. The brand offers financial consulting tailored to older customers, covering areas such as retirement planning, inheritance and gifting.

In their senior-targeted businesses, banks are particularly focusing on customers born between 1964 and 1974, which is known in Korea as the "second baby boom generation."

This group stands out due to their higher income and wealth compared to the post-war generation, making them more inclined toward financial activities such as investments and loans.

According to a 2024 survey by Statistics Korea, the average assets of households were the highest for people in their 50s, totaling 615 million won, followed by households with people aged 60 and above with an average of 583 million won and households with people in their 40s at 582 million won.

“While individuals in their 30s and 40s tend to focus on real estate, those aged 50 and above are thinking about savings, investments and even matters like gifting and inheritance. The areas where banks are needed will continue to diversify,” a banking industry official said.

Internet-only banks, which are used mainly by younger people, are also turning their focus to older customers.

Toss Bank has recently identified the middle-aged and senior demographic as a key area for future growth, announcing plans to establish a dedicated team to serve this group. To that end, the bank intends to launch new products related to asset management and deposits.

“The demand for retirement services from the second baby boom generation is growing rapidly. Through integrated asset management services, we aim to build a loyal customer base,” Toss Bank CEO Lee Eun-mi said during a press briefing on April 16.