Customers 50 and older make up 47.2% of clients, up 2.2 percentage points in two years

Their share of deposit assets stands at 65.9%, approaching two-thirds of the total

Banks expand into pensions, retirement planning and inheritance services

The presence of customers aged 50 and older is growing across the banking sector. Their share of the client base at the five major banks has risen steadily, and they now hold close to two-thirds of total deposit assets. Image generated with generative AI.
The presence of customers aged 50 and older is growing across the banking sector. Their share of the client base at the five major banks has risen steadily, and they now hold close to two-thirds of total deposit assets. Image generated with generative AI.

Customers aged 50 and older are approaching half of the total client base at the five major commercial banks, and their share of deposit assets is nearing two-thirds. As this demographic's influence grows, banks are moving beyond competing for savings and time deposits, expanding into pension management, post-retirement asset planning, inheritance and gift transfers, and long-term care services to attract and retain senior customers.

A survey of age-based customer data from KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH NongHyup Bank found that customers aged 50 and older accounted for an average of 47.2 percent of the total client base as of the end of July this year. The figure has risen steadily — from 45.0 percent in July 2024 to 46.0 percent last year — and continued climbing this year, gaining 2.2 percentage points over two years.

The concentration is even more pronounced in deposit assets. Among four of the five banks — KB Kookmin Bank, Shinhan Bank, Hana Bank and Woori Bank — customers aged 50 and older held an average of 69.7 percent of deposit assets (measured by each bank's deposit-type assets, excluding loan products) as of July this year. That share rose consistently from 67.1 percent in July 2024 and 68.2 percent in July last year, a gain of 2.6 percentage points over two years. Across all five banks, the figure stood at 65.9 percent as of July this year, meaning senior customers hold roughly two-thirds of total deposit assets.

Banks are responding to this shift in their customer base by expanding financial products and services aimed at senior clients. The industry is moving away from competing primarily on savings and time deposits, broadening its scope to include pension management, post-retirement asset allocation, and inheritance and gift planning.

KB Kookmin Bank launched the "KB Golden Life Pension Deposit" in July, a time deposit with terms of one to 12 months that offers preferential interest rates to customers receiving pension payments, including the national pension and civil servant pension. The bank also operates a suite of post-retirement asset management services under its "KB Golden Life" brand.

ATM machines at major banks in Seoul. [Yonhap]
ATM machines at major banks in Seoul. [Yonhap]

Shinhan Bank is leading with its senior-focused brand "Shinhan SOL Mate," offering a time deposit open to individuals and sole proprietors aged 50 and older. At the group level, Shinhan is broadening its senior services beyond finance to include healthcare and lifestyle offerings.

Hana Financial Group provides retirement fund analysis, asset portfolio design and asset transfers through testamentary substitute trusts via its "Hana The Next" platform. The group operates dedicated lounges staffed with senior specialist advisers and also offers non-financial services such as health management.

Woori Bank is expanding its senior financial product lineup under the "Woori WonderLife" brand. It operates the "Woori WonderLife Pension Account," which provides financial benefits to pension recipients, and has also introduced a dedicated credit loan for wage earners and public pension recipients aged 50 and older.

NH NongHyup Financial Group is building out its senior product range through "NH All One Wonderful," a senior-focused brand launched last November. NH NongHyup Bank products under the brand offer preferential interest rates to customers aged 50 and older and to those with pension receipt records, and the lineup also includes testamentary substitute trusts and products covering medical expenses, dementia care and asset succession.

"The 50-and-older customer segment is expanding due to aging, and this age group tends to have accumulated relatively more financial assets over their life cycle," a banking industry official said. "As retirement funds, pensions and other post-retirement income flow in around the time of retirement, and as demand grows to manage those assets stably, their share of deposit assets is also increasing."


rim@heraldcorp.com