The opportunity for the Consumer finance industry

The consumer finance industry has often been on the forefront of change and innovation. The industry embraced technology in a big way—with leading banks providing digital wallets, new mobile banking services, and new models of credit. The rise of new financial technology and experiences comes at a critical time for caregivers, too. Money is a central component of how we care for each other. Care itself is costly and unpredictable, and helping loved ones manage bills, insurance claims, and their assets are all ways families step in to help care for each other. This is a growing need that deserves our attention.

The sandwich generation–those caring for kids and aging parents–is overwhelmed and growing. Their responsibilities as financial caregivers are more overwhelming than ever, too, with nearly 8 in 10 caregivers reporting they have routine out-of-pocket expenses for a loved one and an annual average spend of $7,242. Many of these responsibilities of financial caregiving relate to older parents. Older adults are living longer, and navigating financial lives that are not as straightforward as retiring at 65 and tapping into benefits that ensure their needs are covered. They’re also subject to an overwhelming rise in the amount of predatory behavior, from financial elder abuse to scams, that makes the risks of technology almost seem as great as the benefits.
Financial services today are largely centered around individual needs—think personal checking and savings accounts—but when we look through the lens of how families actually interact with their finances, it’s clear we’re missing a massive opportunity.
In June of 2023, The Holding Co. and McKinsey & Co. conducted an extensive 5,000+ consumer insights survey to understand the behaviors of today’s caregivers across a range of demographics, care types, purchasing power, and spending habits. This survey is representative of the U.S. population and the highlights of the survey are shared in the big ideas pages below. More details about the survey can be found here.

Entrepreneurs and innovators are already building new consumer finance models to better serve the needs of families by:

new ways to relate to assets during retirement.
monitoring and protection of money for older adults.
assessing care public sector money faster and more efficiently.
more efficient ways of paying, sharing, managing and tracking money between caregivers, friends, and family.

examples of consumer finance startups that are paving the way forward:

Download the full consumer finance fact pack

This fact pack contains our 2023 survey data about the care consumer and the three big consumer finance ideas.
Fact Pack

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