Revolut continues the trend of older users embracing fintech
British neobank Revolut is the latest fintech to benefit from an increase in the number of so-called “silver swipers” users, aged 55 to 74. $33 billion challenger bank noted a quadrupling of UK users in this age bracket since 2020.
Revolut also reported a 260% increase in the number of users in the 65-74 age bracket who used the digital lender’s services abroad. At the same time, spending by 55-64 year olds in foreign countries has increased by 500% over the past two years. The fintech startup believes more older customers will flock to its services.
“Given greater confidence in online and app-based financial services over the past two years, confidence in using less cash, and understanding of security measures and protection against fraud, we expect to see an increasing number of customers of all ages,” said George Grumbar, head of customer affairs at Revolut, in a prepared statement.
When asked, a Revolut spokesperson said Verdict that he attributed the rise of old money swipers to “smartphone adoption and the declining number of high street banks” as well as the pandemic.
“The lockdown period has encouraged older generations to become more confident using smart devices, whether that’s video calling loved ones or ordering groceries online,” the spokesperson said. “This newly found assurance has led many to explore the other capabilities of smart devices, including fintech.”
Seniors are at greater risk of falling victim to online scams, analysts at research firm say GlobalData noted. More experienced customers also struggle to adopt and understand new technologies, as the startup noted. No isolation. The risk of fraud and lack of tech savvy could arguably put the financial health of older users at risk when adopting modern fintech solutions.
In response to these concerns, the Revolut spokesperson said the fintech provides a “user-friendly app, notifications and easy access to your finances” that make it easier for customers to manage their spending. These services include a budget planner, savings options, subscription organizers, and bill management options.
Revolut isn’t the only fintech to see the number of older customers skyrocket during Covid-19. The UK boss of buy-it-now giant Klarna, Alex Marsh, recently said Verdict that its ‘fastest growing age group’ in the UK has been in Gen X – 40 to 54 – and they really are the group that would often have shopped in stores [before the pandemic.]”
Revolut secured tridecacorn status in July last year after the fintech secured an $800 million funding round. US investment firm Tiger Global Management and Japanese conglomerate SoftBank injected cash into the deficit neobank as part of the round.
The fintech industry has seen a surge in investment levels during the pandemic. In 2020, venture capitalists backed the industry to the tune of more than $30.7 billion, according to data from GlobalData. This figure has increased to $84.5 billion in 2021.
GlobalData is the parent company of Verdict and its sister publications.