An analysis showed that customers who manage the finances of family members, such as elderly parents or children, are emerging as a new growth market for banks.

Fintech Futures reported on Monday that customers who manage another person’s assets and spending make up a significant share of all households, but bank services have yet to fully reflect their needs. Financial caregiving includes managing money for a parent with dementia, guiding a teenager’s financial habits, and supporting spending by a family member with a disability or in recovery.

True Link argued that these customers are a high-value segment for banks. It said they are 68 percent more likely than general customers to hold a mortgage loan or a home-equity line, and 94 percent more likely to have an investment account. The analysis said that if banks provide appropriate family-finance services, it could lead to deposit inflows, additional sales of financial products and long-term customer relationships.

The problem is that existing banking systems struggle to respond flexibly to demand for jointly managing family accounts. Because of personal data protection and account access rules, there are cases where the functions banks can offer are limited even when families ask for help.

True Link said it provides features such as tailored transaction alerts, spending limits, merchant category restrictions and blocking specific merchants to address this. For example, it blocks transactions with a high fraud risk among online and phone payments while allowing recurring bills or grocery deliveries. The company stressed that such controls cut unwanted spending by about $1,700 a year on average, or 2,286,500 won.

A further feature is that the level of protection can be adjusted in stages depending on the family’s situation. True Link added, "If financial companies provide these functions along with staff training, they can reduce fraud losses and secure intergenerational financial relationships that can be used to retain customers over the long term and expand revenue."