Financial Gerontology: An emerging new sub-field in finance..

Haruhiko Kuroda, Governor, Bank of Japan in this speech talks about Financial inclusion in aging society:

As we get older, we all become physically weaker. Declining mobility means we can no longer take it for granted that we can easily visit bank branches. Deteriorating eyesight and hearing ability may impair our capacity to fill out a form or understand a face-to-face explanation. Declining cognitive ability may create difficulty in making financial decisions. Moreover, there is the risk that senior citizens will become victims of financial crime. In 2018, among all recorded cases of so-called special fraud in Japan — such as telephone-based identity deception — 78 percent of the victims were aged 65 and over.

Financial inclusion is therefore an extremely important social agenda in an aging society, as it ensures that senior citizens — who may have difficulty in visiting banks or making financial transactions due to age-related decline — can continue to use financial services with confidence and benefit as much as possible from these services.

In the field of what is known as “financial gerontology,” there has been discussion about ways to make the adult guardianship system more effective in order to protect the rights of senior citizens with cognitive decline. The use of innovative digital technologies has also been considered. For example, using biometric technology for identity verification and mobile payments will enable senior citizens to have secured access to financial services without actually visiting bank premises. Moreover, the use of speech recognition technology will enable financial transactions to be made without the need for physical writing or keyboard skills. Advances in technology may create increasingly comprehensive financial services that are better tailored to the needs of the individual senior citizen.

These new financial services for senior citizens can also be a great business opportunity for financial institutions. On the other hand, as technology advances, the risk of technology abuse will increase, and vigilance is therefore essential to maintain security.

Hmm..

Though, in India we hear the opposite. How these technologies have made it difficult for aged people to access their own deposited money.

As societies age across the world, financial gerontology is going to be an important are of study.

 

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2 Responses to “Financial Gerontology: An emerging new sub-field in finance..”

  1. determinedinvest Says:

    I am no central banker. But a lot of misselling, especially to retirees, also reflects yield seeking greed. Boj would do well to raise interest rates. This -ve gsec rates biz directly impacts bank deposit rates. And inflation in Japan is yet not zero. Always easy to blame others for your own problems.
    https://tradingeconomics.com/japan/inflation-cpi

  2. determinedinvest Says:

    Or problems created by you. In Japan less so but really surprised the EU senior citizenship has not revolted against this -ve yield biz. Well there were yellow vests in france – i guess the twilight vests are not far behind.

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