Helping older people to invest their savings

Inversa is an easy-to-use investment platform with various tools to help older people invest their savings freely and autonomously

We often talk about how digitalization has helped democratize the investment industry, allowing small savers to access this arena autonomously. But what about older people - do they have to resign themselves to living on the fringes of digitalization? Is it possible to help older people to invest their savings freely when and how they wish?

After all, if people who have worked all their lives do not have access to the financial market, can we speak of a democratization of the financial market?

In the last few decades, society and technology have been digitized rapidly. Today, many people shop online, many administrative procedures can only be carried out electronically, and our way of communicating and relating to each other is based on devices such as smartphones. Although some people are afraid of this revolution, the truth is that older people also benefit from digitalization. Has your grandmother ever sent you a picturesque image wishing you a happy day via WhatsApp?

The key to ensuring that the elderly do not feel intimidated by technology lies in designing intuitive, visual, and easy-to-use applications and platforms that are neither cumbersome nor hostile.

Below, we will tell you why Inversa Invoice Market's platform can help seniors invest their savings by putting into practice the immense experience and vast knowledge they have accumulated throughout their lives.

The importance of media literacy and not undervaluing our seniors

We sometimes forget that seniors have dealt with hundreds of issues that are more complex and difficult to deal with than digitization. Learning how to use a mobile app or navigate an investment platform is not impossible for people who have overcome much more complex challenges and seen the world change over the decades.

To navigate the digital world, you only need access to an internet-connected device, a computer, or a cell phone and the patience to learn. Hence, media literacy is very relevant so that digitization leaves no one behind.

Many people are unwilling to admit that they are afraid of technology. Even young professionals are fearful of it. That is why it is essential to develop user-friendly applications and platforms that do not require a steep learning curve to be used successfully.

That's why at Inversa Invoice Market, we have designed a clear and intuitive platform to help seniors invest… and not only them.

Facilitating access to investment products and avoiding the exclusion of thousands of people must be a priority to democratize the financial sector and enable small savers to contribute to financing companies in the real economy.

An intuitive, visual, and user-friendly investment platform

Inversa Invoice Market, like other FinTech companies, is based on two pillars: technological development and financial knowledge. Is it essential to have strong digital skills to use Inversa's marketplace? No. The platform is characterized by its simplicity. Once the investor is inside, he can consult his investments, search for new invoices to invest, and visualize all the relevant data of each operation: credit rating, credit opinion, interest, term, etc…

Investors can purchase an invoice that suits their objectives and interests in a few clicks. For example, investing only in invoices with a low level of risk, even if it means lower returns.

In this way, we can help older people invest their savings without resigning themselves to receiving minimal interest for depositing them in banks.

Managing the Inversa platform from your computer or cell phone is easy and agile. The interface is clean and offers all the information at a glance to consult what you want to know so that it does not require any learning. All users can start investing immediately.

Investment products that everyone knows and understands

Helping older people to invest their money independently, without the need to delegate decision-making to third parties, requires technological developments based on usability, such as the one described above, but also that the investment product is simple to understand.

In the past, some extraordinarily complex financial products have led to problems that have distanced older people (and not-so-elderly) from the investment sector.

In the face of advanced mechanisms that require extensive financial knowledge to be fully understood, there are many products that everyone can understand. Some of them are traditional, such as treasury bills, while others are innovative but have already established themselves in the market, such as crowdfactoring.

All of us adults know what an invoice is and understand that, on many occasions, companies issue invoices to other businesses to whom they have sold products or services and that these invoices are not paid on the spot. Between sending the invoice and receiving payment, the company may need liquidity to meet expenses or undertake investments. How does it achieve this? Assigning the uncollected invoices through a crowdfactoring platform such as Inversa Invoice Market.

Thus, investors invest their money in invoices from a ceding company to be paid by a debtor business. In return, they immediately earn interest, which allows them to monetize their savings. Once the invoice is paid, the money invested in the transaction is returned to them.

How easy is it to understand? Helping seniors to invest means offering them products they know and trust. Invoices are tangible investment products in which companies in the real economy are involved. Investors always know where their money is going and can read news or consult information about the companies involved in the transaction.

Risk and time. Two critical elements for designing investment strategies

Profitability, risk, and time are the three key elements to remember when designing investment strategies, whatever our age. However, as we mature, risk and time become more important than profitability. This is mainly because risk aversion is rising, and long-term products are less attractive once we have retired. After all, a young person may feel interested in investing in a pension plan, while an older person does not.

That is why older investors opt for fixed-income investment products with short maturities.

Therefore, when helping older people to invest, offering them an investment avenue that can be tailored to their objectives regarding risk tolerance and investment payback period is essential.

Inversa's crowdfactoring platform offers a simple-to-understand product with a fixed return and a very short maturity—a maximum of 180 days, the most common term being 90 days, barely three months.

In this way, we help older people invest by allowing them to design investment strategies that meet their needs.

Insured investments for even more certainty

Beyond what we have just described, Inversa Invoice Market also offers investment products that can be very attractive to more conservative, risk-averse investors: insured invoices.

These invoices have been evaluated by insurers who have studied the economic situation of the companies that must pay them and insure such payments in such a way that, if they are not paid, investors do not lose their money but are reimbursed by the insurance company.

In this way, older people are helped to invest their money, even if their risk aversion is extraordinarily high, by offering them an alternative to bank deposits that will bring them a higher return and allow them to maximize their life savings.

Helping older people to invest by providing them with all the information they need to make their own decisions

When we talked about the Inversa Invoice Market platform, we already pointed out that crucial invoice information is available to all investors. But now we want to dwell on this detail. Why? To help older people invest with complete autonomy, it is essential to make all the relevant data about a transaction available to them.

That's why Inversa Invoice Market uses Big Data to study the behavior of assignor and debtor companies and provide an accurate picture of how they act on the platform. For example, does a particular company take a long time to pay its invoices, pay on time or late, and does it consistently meet its payments?

If, as we said before, older investors prioritize risk, it is essential to provide them with investment mechanisms in which the risk is clear and scientifically assessed. Inversa establishes a precise credit rating of the company that is to pay an invoice, a credit and credit opinion, and stipulates whether or not the invoice is insured.

In addition, of course, the companies involved, the period, the percentage of the invoice that other investors have already financed, the total amount of the invoice, and the interest offered in exchange for the investment are indicated.

With all this data, investors can decide whether an invoice fits their investment strategies. Moreover, they can continue to benefit from digitization and research companies on their own.

To help seniors invest their money autonomously, it is enough to put the information and tools at their fingertips to elucidate whether an investment interests them. Older investors have accumulated a wealth of experience that enables them to analyze potential investments and put into play everything they have learned throughout their lives about the economic sector.

Helping to leave a better world for future generations

Why help older people invest their money? First of all, because many of them want to put their hard-earned savings to good use. Making their money profitable also allows them to enjoy a more pleasant retirement.

Secondly, helping older people invest their money means enabling them to transform the world. In recent years, ethical and impact investing has gained prominence in our society. People no longer want to earn interest on investing their money; they want their investments to help finance real-economy companies that create jobs or consolidate innovative projects that benefit the environment or society.

Through various investment mechanisms such as crowdfactoring, senior investors can help different businesses access the liquidity they need and thus contribute to transforming the productive fabric and essential processes such as the transition to a sustainable economy and society.

In this sense, helping older people to invest means giving them a hand in writing their legacy and imagining a better world for their grandchildren to live in.

Empowering older people rather than excluding them

Unfortunately, our seniors often feel that public administrations, companies, and society push them aside, making them invisible and excluding them from central issues and areas such as the investment sector. Faced with a condescending look at people who have already left the labor market and are enjoying their well-deserved retirement, we must choose to provide them with all the tools they need to participate in social and economic life actively.

Helping older people to invest means, first and foremost, empowering them by offering them investment mechanisms and platforms that are tailored to their needs and allow them to manage their investments freely and autonomously.

Given that life expectancy is increasing and our society is getting older by leaps and bounds, the importance of the population over the age of 65 will become more and more noticeable in terms of the functioning of the economy. Forgoing the investments of the elderly hampers the financing capacity of companies. On the contrary, helping the elderly invest can help consolidate the productive fabric and successfully implement a more sustainable economic model.

Older people have much to say and do. Let us all benefit from their knowledge and talent.