Banks ramp up customer support as 'dementia money' increases

A social worker counsels an elderly citizen during a campaign to check for dementia in Anyang, Gyeonggi Province, on May 18, 2025. Newsis

Commercial banks are ramping up support to safeguard assets belonging to customers diagnosed with dementia, with the disease being found more frequently as the country's population ages rapidly, according to industry officials, Friday.

Dubbed “dementia money,” these assets, ranging from cash and bank deposits to real estate, are at risk of lying dormant and unused or being misused when affected customers are diagnosed and can no longer manage their finances independently.

Wealth and assets held by people with dementia was projected to reach 172 trillion won ($118.69 billion) in 2025 — equivalent to 6.9 percent of gross domestic product — and is expected to climb to 200 trillion won in 2030 and 488 trillion won by 2050.

The growth mirrors the sharp rise in dementia patients aged 65 or older, with the number expected to increase from 970,000 in 2025 to 1.21 million in 2030 and 2.26 million by 2050.

In response, banks are setting up dedicated task forces, introducing specialized and simplified trust products and enhancing monitoring systems to prevent financial abuse by third parties.

“We want to ensure these assets are used appropriately, including for medical care, long-term care and daily living expenses,” a bank public relations staffer said.

Earlier this month, Shinhan Bank formed a task force to strengthen financial protection for customers diagnosed with dementia.

The bank plans to launch a tentatively titled “Dementia relief trust,” aimed at preventing the unauthorized use of patients’ assets by family members or caregivers.

The product removes minimum fee requirements and investment thresholds in a bid to lower cost barriers that have traditionally limited access to trust services.

In addition, Shinhan Bank is moving to standardize trust contracts to clearly outline how assets should be reinvested or used for medical and long-term care expenses if a customer’s cognitive health deteriorates.

It will also establish a separate complaint desk for dementia-related cases, reflecting concerns that such customers are particularly vulnerable to financial fraud.

NH NongHyup Bank plans to roll out a dementia care trust covering medical expenses in the first half of 2026, allowing customers to deposit assets in advance so the bank can later disburse funds for hospital bills, caregiving, and living expenses if illness occurs.

The bank has set up a specialized trust product team to oversee the initiative.

In August 2025, Hana Bank launched the financial industry’s first unit dedicated to dementia care, providing trust design services for customers prior to diagnosis and guidance on adult guardianship procedures after symptoms appear.

In December 2025, KB Kookmin Bank launched a trust allowing customers to designate proxy claimants and establish asset management plans while still in good health.