"Capturing the 5060 Generation is Key to Competitiveness"... Banks Targeting Generation A

Published 06 Jul.2022 06:00(KST)

[Asia Economy Reporter Bu Aeri] Banks are focusing on targeting the so-called 'A Generation,' middle-aged and older adults aged 50 and above with high purchasing power and income levels. Alongside the MZ Generation (Millennials + Generation Z), the A Generation has recently emerged as a new consumer segment among companies, characterized by traits such as Ageless, Accomplished, and Alive.

According to Shinhan Bank on the 6th, the bank recently established an A Generation Tribe in its organizational restructuring for the second half of the year. This unit aims to secure the number one market share in the senior market. It focuses on areas such as the retirement pension market, which interests those aged 50 and above. A Shinhan Bank official stated, "Since the A Generation is economically stable, we will study services and markets for their second act in life."

Woori Bank also established a Pension Customer Management Center in its recent organizational restructuring. This unit specializes in managing the returns of pension customers. Middle-aged and older adults tend to be more interested in pensions and retirement planning than in housing or childcare needs. Woori Bank expanded its previously small pension consultation team of eight members into a full management center, now consisting of 23 members divided into customer management planning, returns, and Answer-Back teams. A Woori Bank official explained, "We plan to secure sales competitiveness in the expanding retirement pension market by providing specialized pension services through both face-to-face and non-face-to-face channels."

KB Kookmin Bank is also putting effort into the A Generation. It operates the 'KB Golden Life Center,' the first specialized face-to-face retirement asset management consultation center in the banking sector, at 11 locations nationwide. At the KB Golden Life Center, customers can review overall asset management, including financial asset management, retirement living expenses, tax-saving strategies, and post-retirement health insurance and national pension premium payments. In addition to retirement planning, further consultations with real estate, tax, investment, and legal experts are available. KB Kookmin Bank plans to continue expanding the centers, focusing on key regional hubs nationwide.

Hana Bank has established an 'Active Senior Advisory Group' to strengthen senior-friendly services. The advisory group consists of customers aged 55 to 69 from various professions such as self-employed, office workers, homemakers, and freelancers, who will provide financial ideas and suggestions for improving convenience. A Hana Bank official emphasized, "In an era where the voices of elderly customers, known as Smart Seniors and Active Seniors, must be quickly and effectively reflected in management, this is a source of corporate competitiveness."

Experts analyze that banks are adopting a strategy of focusing on differentiated markets. Professor Wi Jeong-hyun of Chung-Ang University's Department of Business Administration said, "In Japan, this phenomenon has been ongoing for a long time because elderly people hold significant assets. On the other hand, since internet-only banks like KakaoBank are capturing the younger generation, banks are focusing on markets where these competitors have less presence."