British neobank Revolut is the latest fintech to enjoy a rise in the number of so-called “silver swipers,” users between the ages of 55 and 74. The $33bn challenger bank has noted a quadrupling of UK users in this age bracket since 2020.
Revolut also reported a 260% increase in the number users in the 65 to 74 bracket that have used the digital lender’s services abroad. Meanwhile, spending by 55-64 year olds in foreign countries has increased by 500% over the past two years. The fintech startup believes more older customer will flock to its services.
“Given the greater confidence in online and app-based financial services over the last two years, the confidence in using cash less, and the understanding of the security measures and fraud protection, we expect to see growing numbers of customers of all ages,” said George Grumbar, Revolut head of customer affairs, in a prepared statement.
When asked, a Revolut spokesperson told Verdict that it attributed the rise of older silver swipers to “the uptake of smartphones and decline in the number of banks on the high street” as well as the pandemic.
“The lockdown period encouraged older generations to become more confident using smart devices, whether it was to video call loved ones or order groceries online,” the spokesperson said. “This newly found assurance has led to many exploring the other capabilities of smart devices, including fintech.”
Older individuals run a greater risk of falling victim to online scams, as analysts at research firm GlobalData have noted. More senior customers also struggle to adopt and understand new technology, as noted by startup No Isolation. The fraud risk and the lack of tech savvy could arguably put older users’ financial health at risk as they adopt modern fintech solutions.
In response to those concerns, the Revolut spokesperson said that the fintech provides a “user-friendly app, notifications and easy access your finances” that make it easier for customers to manage their expenditure. These services include a budget planner, savings options, subscription organisers and bill management options.
Revolut is hardly the only fintech to see the number of older customers skyrocket over the course of Covid-19. Buy-now-pay-later giant Klarna’s UK boss Alex Marsh recently told Verdict that its “fastest growing age group” in “the UK has been in Gen X – 40 to 54-year-olds – and that really is the group who would have been often shopping in stores [before the pandemic.]”
Revolut achieved its tridecacorn status in July last year after the fintech secured a $800m funding round. American investment firm Tiger Global Management and Japanese conglomerate SoftBank injected cash in to the loss-making neobank as part of the round.
The fintech industry has enjoyed rocketing investment levels over the course of the pandemic. In 2020, venture capital investors backed the industry to the tune of over $30.7bn, according to data from GlobalData. That figured jumped to $84.5bn in 2021.
GlobalData is the parent company of Verdict and its sister publications.