Revitalising the economy and generating wealth is the challenge facing the SilverMoney project. It aims to boost the âSilver Economyâ using a card that gives direct discounts on what people aged over 60 buy on a daily basis, in order to generate monthly income for their children and grandchildren.
With the world population living ever longer, first world countries are beginning to prepare for a trend that is only increasing with every decade that goes by. Spain, for example, has hit a historical record with 125 retirees for every 100 under 16 year olds, according to a report by the Fundación Adecco, an indicator that in the medium term the senior population will begin to be a majority as compared to new generations.
For this reason, the European Commission has decided to make the so-called silver economy one of its priorities this decade. As well as seeking to benefit people, these economic activities can become a profitable market with huge potential for the future of Europe.
In February the SilverMoney project was awarded for its promising potentialÂ
Oxford Economics defines the silver economy as all economic activity carried out by people over the age of 50, including both the products and services they consume. And this is where Madrid-based company SeniorsLeading aims to operate with its new line of business, offering a fintech service specially aimed at the elderly but with an intergenerational benefit.
A promising start, daily savingsÂ
The SilverMoney project by Madrid startup SeniorsLeading was one of the winners of the first edition of the âEl Despertadorâ programme for Freelancers and SMEs in February. This disruptive acceleration programme looks for new solutions through collaboration between technology-based startups and other companies that are committed to innovation.
âWe chose this company because itâs good for the city of Madrid. Projects were chosen that could revive the capitalâs economy after the dormancy of the pandemicâ, explains Nacho Villoch, Ecosystem Builder at BBVA Open Innovation, who is involved in the El Despertador programme.
Now, a couple of months after collecting the award, SilverMoney plans to launch this April starting with a pilot project that will focus on the city of Madrid and some local businesses, such as municipal markets, where they will put into practice their plan for seniors to be able to generate savings for their descendants.
The way this will happen is through an app or a physical fintech card, which will give users effective discounts in certain places. The senior pays the cost of the product or service, but a stipulated percentage is sent to a current account each month. At the end of the month, the child or grandchild previously nominated by the older person will receive all the money that the account has accumulated.
âAs a company, our mission is to ensure that older members of the household can help their children and grandchildren financially through a savings programme that has a daily impact on their regular purchases, so that the monetary impact is real at the end of the monthâ, explains Luis Castillo, founder and CEO of SeniorsLeading.
12 million OAPs in Spain, and countingÂ
SilverMoney considers its target audience to be the over 60s, with particular interest in those between 60 and 65 due to their greater purchasing power, and not people aged over 50 as Oxford Economics specifies. âThat definition has been adopted because people at that age see their hair turn silver. Weâre focused more on an age band that is defined by factors of family, social and economic leadershipâ, Castillo concludes.
The importance of this senior audience is noticeable in Spain â there are over 12 million Spaniards in this band today, a figure that will be surpassed in the coming years as various reports put the country at number one in the longevity rankings for 2040.
âWe have to bear in mind that the state spends âŹ114 billion a year on pensions, money that goes into the pockets of people over 65 and comes directly back into the economy, because those pensioners consume goods and services every monthâ, explains the founder and CEO of the company. âThat money is an expense that then becomes wealth for everyone. Thatâs the circular economy and that is where we have to actâ, he adds.
Starting in Madrid, targeting the USÂ
As for expansion plans, SilverMoney estimates that after operating for a year they will reach 300,000 holders of their card and app. Their goal in two years is to hit two million holders, and to do this they are planning to scale up from the Madrid market to the national market and, later, to try targeting other places like the United States and Europe.
âOur intention is for SilverMoney to bring together all kinds of industries, for you to be able to get discounts in your neighbourhood market, but also at a car dealership, restaurants or entertainment venues. We want to grow, and we know that in the U.S. there is interest, as there is in several European countriesâ, Castillo predicts.
As the Madrid startup says, itâs time to âleverage the increasing longevity of the population so that children and grandchildren can build a better future thanks to the status and purchasing power that their elders have earned over decadesâ. In times of economic uncertainty, the silver economy and the leadership of the silver generation can also benefit these new generations, giving them a boost and paving their way forward.
