Statistics aside, the population is getting older and life expectancy is increasing. In this context, one gets to the age of '50' carrying over a legacy (physical, emotional and patrimonial) together with the concern of securing the future. This is also the time when people usually rush for last-minute savings.
As a result, each individual ends up having very specific needs and wishes, thus leading to a virtually infinite set of choices from the demand side.
It then becomes almost impossible for a single financial institution to offer a universal solution.
Offer a financial based marketplace where ‘50+ youngsters’ can trade their financial credits for specific needs, supplied by dedicated service partners.
Ideals aside, this corresponds to a co-op approach, where the market is somehow owned by the ‘50+ youngsters’ eligible for trading, and by the credit unions. Running in such way, would also give them the power to potentially redistribute the gains throughout chosen causes.
Key Stakeholders & Interests
‘50+ youngsters’: Gain access to liquidity with advantageous conditions, at the credit union (e.g. by getting a 2nd mortgage on the house while keeping the right to live in it, via a rental contract). This liquidity is then used to trade in the marketplace for specific needs.
Credit Unions / Other Financial Institutions: Secure income with trading commissions, potential x-selling to other financial products, holding savings accounts, servicing other family members, amongst others.
Service Providers (travel agencies, care providers, financial advisors, insurers): Make business by gaining access to a restricted market of loyal customers, well segmented and financially secured.
How it works
Trade the needs (e.g. ensure a trust for the grandchildren, healthcare, traveling, etc.) in the marketplace (limited to the people over 50 trading within this financial consortium). If they don't use their ‘stocks’ or ‘credits’, they can then re-sell them on the market (trading, in the traditional way). For example: one person acquires the right (credits / stocks) to travel next year. If somehow ends up not using them, this person could trade back these rights.
Set-by-step, i.e. start with simple products (needs) and then expand over time to higher risk products (such as cancer treatment). It can potentially evolve and become complemented by an insurance marketplace, mathematically designed by actuaries and financial experts.