UNDERSTANDING KOREA’S FINANCIAL SERVICE SECTOR AND BUILDING AGE-FRIENDLY FINANCIAL SERVICES IN KOREA
A super-aged society refers to a society where a significant proportion of the population is aged 65 or older, typically exceeding 14% of the total population. As of 2024, senior citizens aged 65 and above accounted for 20% of Korea’s population, marking Korea as a super-aged society. With this demographic shift, financial services now play a critical role in supporting the well-being and security of older adults. The pressing question becomes: how can financial companies attract and better serve older customers? To answer this, it is important to understand Korea’s financial sector and the unique challenges older adults face, then propose tailored strategies and solutions.
Korea’s financial service sector is highly developed. It boasts the third-largest insurance market and the third-largest banking system in the Asia. According to Yoon L., the financial sector contributes significantly to Korea’s economy, with over 3,000 institutions including banks, insurance companies, and securities firms. The banking system includes 12 national and regional banks, 3 digital banks, and 5 government-affiliated specialized banks. Major commercial players include KB Kookmin, Shinhan, Hana, and Woori Bank.
In a bid to provide tips and develop practical solutions to attract and serve older customers, it is necessary to first understand the specific financial needs and limitations of the aging population. These include managing retirement plans, addressing long-term healthcare costs, and overcoming the challenge of navigating digital banking platforms.
One important strategy is to improve age- friendly financial products that build trust and confidence between older customers and financial institutions. While Korean banks already offer retirement plans, annuities, and reverse mortgages, their complexity often discourages older adults from fully engaging with them. Financial institutions should simplify product structures, use clear language, and combine services like healthcare savings and pension management into integrated “senior care packages.” These improvements would make planning more straightforward and relevant to seniors’ daily lives.
Equally important is providing financial education tailored to older adults. Through workshops and training, financial institutions can empower older adults to make informed decisions about retirement planning, debt management, and asset preservation. These initiatives not only promote independence but also build trust and loyalty when delivered consistently and in accessible formats.
On the digital front, Korean financial institutions have already made commendable strides in addressing the challenges faced by older adults, especially around digital literacy. Shinhan and KB Kookmin have introduced simplified apps and mobile IT classrooms that serve senior communities. However, these efforts are often centralized and sporadic. To make a broader impact, banks should partner with community
centers, libraries, and religious institutions to offer regular, hands-on training sessions. These programs should be embedded into local routines, helping seniors build confidence gradually rather than overwhelming them in one-off events.
To build on this momentum, banks could introduce a “Silver Consultation Program” in which tech-savvy retirees act as peer guides. These consultants can assist others in learning digital tools, detecting scams, and conducting transactions online. This not only encourages peer learning but also offers retirees meaningful engagement opportunities after leaving the workforce.
In addition, more can be done to improve the accessibility of digital platforms. While many banks have already adopted large fonts and simplified layouts, further enhancements are possible. AI-powered voice banking is one promising solution. Voice assistants tailored for seniors, responding slowly and clearly to spoken commands, can reduce barriers for users with visual or mobility challenges. Korean banks can lead in designing culturally relevant and linguistically sensitive voice banking systems for their elderly customers.
Beyond convenience, security is a growing concern for elderly clients. Many older adults fear falling victim to fraud or making irreversible mistakes during online transactions. To alleviate this concern, banks can implement real-time fraud detection systems that notify not only the account holder but also a trusted family member who has been added to the account. This shared alert feature adds a layer of safety and reassurance, giving seniors the confidence to conduct their banking online without fear.
Lastly, to ensure long-term engagement, loyalty and reward programs should be tailored to the preferences of older customers. Incentives like health discounts, low-fee services, and bonus interest on pension-linked savings accounts can enhance satisfaction and encourage continued use of financial tools. Combined with responsive customer support and regular feedback channels, these efforts show a clear commitment to serving the needs of the aging population.
By combining these upgraded initiatives with current efforts, Korean financial institutions can move beyond inclusion and build a truly empowering system for older adults. This is a system that respects their pace, supports their independence, and creates a secure financial environment that reflects the realities of an aged society.
Article written by Kadishi Oliseh and Tedunjaiye Oluwatobi for Economic Essay Contest for University Students 2025 Originally titled BUILDING AGE-FRIENDLY SERVICES IN KOREA: POLICY AND PRACTICES FOR SERVING THE ELDERLY
