Many banks have focused on products for specific age groups, like college students or first-time homebuyers. But a recent study finds that another age group could be more lucrative for financial institutions.

According to a household financial analysis conducted by New York-based Scarborough Research, consumers age 50 and older account for a large portion of the American investing public. Sixty percent of consumers who have certificates of deposit in their household are age 50 or older. Approximately half of the people with individual retirement accounts and money market accounts in their households are also in this age group. The study found that consumers 50 and older are active investors and account for 42 percent of those with stocks or stock options as a household investment.

“Consumers [in the 50-plus age bracket] control a disproportionately large share of the nation’s wealth and they are a prime target for financial services of every stripe,” said Linda Fisher, director of the American Association of Retired People. “When it comes to targeting the 50-plus consumer, however, it is essential to understand the real lives of midlife and older Americans – from which activities define their lifestyles by age, gender, income and race, to how often they purchase financial goods and services.”

Scarborough Research provides data solutions and media strategies to its subscribers to help extend brand reach, increase sales and expand into new markets. The research company is encouraging marketers to target the older age bracket.

“Financial marketers are realizing that adults [age] 50-plus control most of the nation’s wealth,” said Alisa Joseph, vice president of advertiser marketing services at Scarborough Research. “Those not aggressively targeting this often under-tapped consumer segment are missing out on the lion’s share of the substantial net worth this powerful group offers.”

Local institutions, like Danversbank, have been offering specific products to older consumers with much success. Jennifer Clark, vice president and director of retail banking, said the 50-plus age group is one of the bank’s largest segments.

“The age group is such a large demographic,” Clark said, adding they are also one of the wealthiest.

Clark said it is important to determine the differences between the 50-plus age group and other consumers by “looking at life stages of consumer segments and how we need to provide services they need.”

Clark pointed out that 50-plus consumers have different preferences from the 18-49 age group.

“They’re looking at different cars than the 20- to 30-year-old segment is looking at,” Clark said.

Reaching Out

According to the Scarborough study, the younger age segment does have different needs. Adults between 18 and 49 account for almost two-thirds of the 18-plus population, but only 40 percent have CDs in their household, 51 percent have IRAs and 49 percent of those consumers have money market accounts.

Clark said the older age group also has different lending needs.

“They typically have their own home,” she said.

As most banks ramp up their Web site and online banking services, Clark said the 50-plus consumers are not the primary group using the Internet. Online services are important, she said, but these consumers typically are not using bank Web sites every day.

The Scarborough study found similar results regarding Internet banking.

The age 50 and older group is 33 percent less likely than all consumers to pay their bills online, the study said. Although they may not be using the latest technology as often, Clark said banks should not ignore this group, which makes larger deposits, tends to have good credit and is more financially savvy.

“Because of their maturity, they have an understanding of what they want from a bank,” she said. “It’s really a well-rounded group.”

At Natick-based Middlesex Savings Bank, the older population is using CDs because they are priced at a premium rate, according to Jim Briand, senior vice president and director of marketing.

“CD products [tend] to have a strong appeal for the older segment,” he said, adding this group is looking for high value.

Other bank products that invite the 50-plus consumers are ones with little or no fees.

“We deliberately structure our products [for 50-plus consumers] in a low-fee [manner],” Briand said.

The Freedom Gold Checking at Middlesex Savings is one particular product that reimburses customers for foreign ATM fees.

Salem Five also offers ATM fee reimbursement with its Gold Star Checking package. Louise Mallett, vice president of retirement services, said this is useful for older consumers who may be traveling frequently.

Having familiar faces at a branch also is crucial, Briand said, because customers in this age bracket feel more comfortable with bank personnel they know.

“The stability of our personnel is very important,” Briand said.

Mallett said she has noticed that older consumers often want someone to spend the time to help with their financial planning.

“They really want somebody they can sit down and talk with,” Mallett said.

Such consumers are also transitioning from a high borrowing phase of their life to a time when their savings are higher and therefore need strong investment products.

“They are taking more advantage of banking services,” Briand said.

Mallett said there are various products this age group is looking for because their kids tend to be out of college and they often are saving for retirement or to purchase a second home.

“This is a phenomenal target age group,” Mallett said.

Clark said she has noticed that the older adults are typically interested in mutual funds, CDs and home equity lines of credit.

The study found adults 50 and older are using a variety of financial services providers. They are 50 percent more are likely to use a full-service stockbroker and 23 percent more likely to use a financial planner than their younger counterparts.

“Their financial assets, coupled with their appetite for person-to-person contact, make mature consumers an attractive target for many categories,” Joseph said.

While the banks may offer tailored products and services, they also need to make consumers aware of what is out there. There are a variety of targeted ways to do so.

According to the study, 25 percent of the 50-plus age group also makes up much of the most avid newspaper readers. Almost two-thirds read a daily newspaper. Television also is a strong medium for advertising. Nearly 60 percent of television’s most avid viewers are people 50 years old or older. Retired adults 50 and older are twice as likely as all adults to be among the most avid television viewers. Consumers age 50-plus are 26 percent more likely than all consumers nationally to listen to news and talk radio.

Mallett said Salem Five holds open houses for 50-plus consumers in bank branches or seminars at local hotels. The seminar topics have included beneficiary designations and mortgage guidance.

Newspaper advertisements have also helped the bank gain new customers.

“Print ads are lucrative,” Mallett said.

Briand said Middlesex Savings does not specifically target the 50-plus age group in their advertisements, but includes the group in the bank’s ad images.

Clark said the Danversbank has visited communities with higher 50-plus populations to offer personalized service.

While the bank tries to land these specific customers, Clark also said marketing to older consumers often provides an opportunity to gain even more customers from other age groups, as well. Many of the 50-plus consumers have adult children and Clark said by getting the parents as a customer, the bank is more likely to gain the children as customers, as well.

Jennifer Jope may be reached at jjope@thewarrengroup.com.