Eighty-nine percent of the bank respondents viewed pricing as somewhat or very important as a competitive lever, but only 51 percent said that today they have the capability to leverage pricing as a source of competitive advantage.
The bottom line: companies competing for boomer business will need business and technology platforms flexible enough to accommodate different boomer market segments, new types of transactions, new federal and state regulations, and competition from multiple fronts.
"Banks, financial services firms and insurers have an enormous opportunity in front of them and they need new capabilities to create the tools and services boomers need," said Aamer Baig, Managing Partner of Diamond's Financial Services practice and a co-author of the study. "Boomers need help preparing for retirement, because many lack a strong financial acumen and a rational, long-term approach to do the right thing."
To fully grasp baby boomers' holistic needs as they approach retirement, Diamond surveyed 626 consumers aged 45 and older, asking questions about their health and finances, probing their attitudes, behaviors, and current situations. For comparison, Diamond also surveyed executives at 105 banks, investment firms, and life insurance companies, each with revenues of more than $500 million, to understand how those companies are pursuing this market.
The results clearly illustrate that boomers are not a homogeneous group, and companies cannot treat them as such. Different segments of the boomer population have specific needs based in unique attitudes and behaviors, according to the study. Diamond refers to these segments as Affluent Sophisticates, Aspirants, Retired Settlers, Moderates, and Survivors, and identifies the segments based on consumers' financial confidence and health consciousness.
To obtain a complete copy of the report,
|SOURCE Diamond Management & Technology Consultants, Inc.|
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