True Link Challenges Financial Services Firms to Build More Services for the Aging and Their Caregivers

True Link was recognized as one of the 50 hottest companies in fintech by Forbes last week, joining a small group of leading financial technology companies that are at the forefront of consumer financial innovation. The company supports people with memory loss, special needs, addiction, and mental health challenges, as well as kids and teens. Its card and investment services[1] are used by over 160,000 Americans and their family and professional caregivers.

According to True Link CEO Kai Stinchcombe, “In ten years every customer in America is going to have access to a bank account[2] designed specifically for caregivers. We have never understood why there weren’t more banks and fintechs doing this and believe it is about to be an avalanche. Banking customers want to know that their financial institution is there for them in their toughest moments.”

The business case for financial institutions to offer family banking, including an aging parent offering, is extremely strong:

• Large population – According to survey research,[3] 19.3% of adults report that they help another person manage their finances. Of those, 8.6% report helping manage the finances of an aging parent – 40% more than the 6.2% of adults who report helping manage the finances of a child or teen.
• Excellent customers – Caregivers to the aging and people with disabilities are better banking customers. They are 94% more likely to have an investment account, 93% more likely to have life insurance, 68% more likely to have a mortgage or home equity loan, and 198% more likely to have a small business account than average adults.
• Dual relationship – When a bank offers a caregiver product, it is both an opportunity to retain the assets of an aging customer and to engage the younger generation. And, supporting caregivers to the aging builds loyalty in advance of the “great wealth transfer.”
  Customer and social impact – The loyalty boost a bank can earn from helping a family with challenges related to aging is 79% greater than having a convenient bank branch and 45% greater than an above-average mobile app.
• Faster growth – Problems related to aging are increasingly prevalent. For example, there will be 89 million Americans over 65 in 2060. The over-100 population is projected to grow a stunning 19,000% between 1980 to 2060, according to the Census Bureau. Customers expect their bank to support them and their loved ones as they age.

The company’s net promoter score of 80 – compared to a banking industry average of 34 – illustrates the value its customers find in this service.

True Link has raised approximately $67 million of venture capital and its Seed, A, and B rounds were led by Midas List investors at Y Combinator, Initialized, QED, and Khosla. True Link currently serves more than 160,000 households, and its subsidiary True Link Financial Advisors, LLC manages over $1.7 billion in assets.[1]