Financial services provided by banks to senior citizens of Singapore

• Main Authors: Loo, Deborah, Tan, Li Choo, Norshirin Sulaiman
• Other Authors: Philip Gerrard
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/64532
• Institution: Nanyang Technological University

The main objective of this report is to identify the financial services banks provide specifically for senior citizens and to suggest possible modifications and some recommendations. Based on these suggestions, banks could tailor their products to better service the needs of senior citizens. Another objective is to evaluate the present marketing strategies used by banks and to suggest improvements, if they are needed, to enable banks to better market their products. Pamphlets were collected from banks to ascertain the available services for senior citizens. Where pamphlets were not available, face-to-face interviews or telephoned enquirers were made. This report also includes an analysis of a survey carried out on senior citizens of fifty-five and above (refer to Appendix 4 for a sample questionnaire) . The target size was one hundred. To provide some background knowledge to the main part of the report, include some introductory topics are introduced. These an outline of how the Central Provident Fund operates.Other topics include a description of the alternative forms of investment and the advantages of services for senior citizens to both the banks and senior citizens. From the results of the survey, the most commonly used service was the Special Accounts for senior citizens, followed by the Central Provident Fund Minimum Sum Scheme (CPF MSS) Account and the Fixed Deposit Account. Most of the senior citizens assess the monetary benefits as being good for the Special Accounts and average for both the CPF MSS and the Fixed Deposit Accounts. As for fringe benefits, most think they are good for the Special Accounts. Few grade the monetary and fringe benefits as poor or excellent. Most of the respondents used the services at age fifty-five to sixty, but most would prefer the services to be available at ages forty-six to fifty. Senior citizens who were not using the services as offered, explain their reasons for not doing so as being the lack of interest, the lack of advice and the onerous entry requirements. On the marketing side, the most common advertising tools for the products were through newspapers and through pamphlets. Recommendations relating to the monetary benefits of the various services include offering higher interest rates on fixed deposits and tax exemption on interest earned by those with large investment portfolios, with their own businesses or those who are working after retirement age. Another recommendation is that banks should have special rates on loans and overdrafts taken up by senior citizens for specific purposes. Recommendations, relating to the fringe benefits of Special Accounts, include the need to offer free or concessionary insurance other than that presently offered. Another recommendation is to have discounts and rebates at more retail outlets frequently patronised. Other general recommendations relate to the age when certain sectors of the population may begin using the special services for senior citizens. Another recommendation is that the entry requirements be relaxed for certain senior citizens particularly where they originate from the lower income groups. To facilitate senior citizens using electronic and telebanking services offered by the banks, it is recommended that the banks provide free lessons on how to access them. On the marketing side, there are recommendations relating to the marketing strategies of banks. These include the advertising of services for senior citizens on the television, radio and on posters. Other recommendations relating to the literature of banks include putting clearer details on pamphlets, as well as mailing letters and pamphlets to senior citizens.