Women Boomers Rise to Become Market Superpower

There’s no denying women are the next financial superpower. As demonstrated in the findings of the Intuit 2020 Report: The Future of Financial Services, women will be in the spotlight over the next decade as key financial decision makers. With Gen Y women projected to dominate higher education graduation rates and professional workforce entry, women are poised to take control of financial responsibility both as household CEOs, consumers and business decision makers fueling the She-conomy.

The Intuit 2020 Report also projects that by the year 2020, 60 percent of baby boomers will be women, the majority of whom will work beyond the traditional retirement age by starting small businesses and re-entering the workforce. Credit Union Magazine recently highlighted similar findings from the CUNA Marketing and Business Development Council which states that baby boomer women will control two thirds of consumer wealth over the next decade. Mary Brown and Carol Orsborn’ s book, Boom: Marketing to the Ultimate Power Consumer—the Baby Boomer Woman, supports this claim and outlines six important insights financial institutions might not know about their female boomer customers. We’ve included a few below.

  • Many boomer women are at the peak of their earning potential. Eight of 10 say they don’t plan to retire.
  • Many boomer women will manage inheritances from parents and husbands, as most will outlive their husbands by six to nine years.
  • Women ages 35 to 54 years old made up the highest proportion of web surfers. Direct catalog marketers estimate that women constitute 70% of online purchasers, the majority of whom are boomers.
  • Boomer women aren’t set in their ways. According to the Center for Women’s Business Research, 68% of women over age 35 old say that the older they get, the more they enjoy trying new things.

You can read the full list here.

How are you helping your female boomer customers? Do you have any advice on how to market your services to this female population?

Let us know by posting in the comments section below or tweeting @Bankingdotcom.

What We’re Reading: Banks & Hurricane Irene, Mobile Security and the ‘She-Conomy’

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom.

  • Amex Expands Digital Payment Product Line

American Banker

American Express Co., which has been developing prepaid and digital payment options to expand its audience, has added yet another product: an online-only gift card. The non-reloadable eGift Card is intended to be used solely online – the New York company does not offer a plastic card to go with it. Amex launched a more flexible digital payment product in March called Serve, which can be paired with a plastic card for point of sale payments. Serve is meant to attract a broader audience than Amex reaches with its credit cards, which are typically marketed as high-end products. In June, Amex began offering a low-fee prepaid card to further broaden its appeal to the masses.

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  • U.S. Bank Expands Mobile Alerts to ATMs, Debit Cards

American Banker

U.S. Bank, which was one of the first banks to offer mobile fraud alerts to credit card customers three years ago, has expanded its alert program to ATM and debit card holders. These alerts are part of a larger effort on the bank’s part to provide customers with near-real-time financial tracking.”This streamlines a number of processes for the consumer,” says Dominic Venturo, chief innovation officer, U.S. Bank, adding that the service can be useful in cases such as expense management and fraud mitigation.”It’s in a broad context of making the mobile device a place to go to get information about an account,” he says.

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  • Silicon Valley Bank Debuts Global Payment Hub

Bank Technology News

Large banks such as Bank of America and Wells Fargo have been working for years to build global payment “hubs”: online banking platforms their corporate customers can use to send and accept payments of different types and in foreign currencies to their customers and partners around the world. It’s an exceedingly difficult task; even offering one online banking interface for the many accounts a corporate customer holds is not simple; having disparate payment pipelines all feed into that online banking interface with the ability to execute transactions is a major IT challenge. Santa Clara-based, $17.5 billion-assets Silicon Valley Bank may be beating such larger competitors to the punch.

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  • Over Half of Middle Market Companies Are Willing to Refer Their Primary Bank

Barlow Research

Referrals are an important way to draw in new customers. In Barlow’s Middle Market Banking study, respondents are asked whether or not they would refer their primary bank to another company with similar needs. A satisfying business banking relationship is essential to a bank’s survival in these economic times and winning a customer’s referral can further cement the loyalty of that customer to the bank. It only takes one dissatisfied customer and business will be taken elsewhere.

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  • Here Comes the ‘She-Conomy’

Credit Union Magazine

Over the next decade, women—particularly those in emerging markets—will become a dominant force worldwide, assuming increased leadership responsibilities across business, government, and education. And due to urban migration, improved access to education, mobile technologies, and the availability of micro credit, nearly one billion women will enter the workforce or start new businesses by 2020.This move to the “she-conomy” is one of 20 trends that will shape the next decade, according to the Intuit 2020 Report, prepared by Emergent Research in partnership with Intuit. In addition, women from generation Y, across race and ethnic lines, will dominate both college graduation rates and professional workplace entry, expanding their role in management and in professions such as law, business, and medicine, according to the report.

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  • Banking in a Mobile Society – Less Talk, More Action

Credit Union Times

For credit unions, great member service once depended on the availability of live, empowered and intelligent people who could answer critical questions and nurture personal relationships. But, making time for chit-chat is not a priority for Generation Y, nor even Gen X or the Boomers. Today’s technology-savvy consumers want a little less conversation and a lot more action. For them, speed and self-service through tools like mobile banking are key to achieving satisfaction.

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  • Acting as a Trusted Partner

Javelin Strategy & Research Blog

Helping out in the face of disaster is a natural. Javelin’s  Beth Robertson was glad to hear from one of her banks this week (via e-mail) to see that it was being proactive in reaching out to customers. With all the bad press that banks have had recently, the recent East coast hurricane offered a chance for this bank (and others) to reach out as a partner and friend. The bank in this case was Chase. She uses another bank for online banking and bill pay, but did not hear anything from it.

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  • Banks give victims of Irene a break ; Some are waiving fees and offering low-cost loans

USA Today

As Hurricane Irene has left East Coast residents with rushing water, power outages and mounting bills, some banks are offering financial help. Banks and credit unions are temporarily waiving overdraft fees, letting customers skip payments and offering low-cost loans to relieve some of the financial burden on hurricane victims. “When we went through Hurricane Katrina, we learned a lot,” says Ryan McInerney, CEO for JPMorgan Chase’s consumer banking. “What we created was a playbook that we can use in natural disasters like this.”

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