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Determinants of older consumers’ interest in home equity conversion products

Simona Cosma (Department of Management and Economics, University of Salento, Lecce, Italy)
Stefano Cosma (Department of Economics Marco Biagi, University of Modena and Reggio Emilia, Modena, Italy)
Alessandro M. Peluso (Department of Management and Economics, University of Salento, Lecce, Italy)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 12 April 2019

Issue publication date: 18 June 2019




The purpose of this paper is to highlight opportunities for the banking sector arising from the population’s aging and the expected reduction in pension incomes. Home equity conversion (HEC) instruments are a potentially useful way of restoring households’ finances and satisfying their needs, with implications for the demand for financial services.


By using an ordered probit regression model, the paper analyzes data obtained from a survey of 2,000 Italian households.


The main finding of this paper is that individuals with greater familiarity with consumer credit, a cognitive and decision-making approach favorable to use of credit, and an internal locus of control show greater interest in various forms of equity conversion.


This paper extends the analysis of the determinants of individuals’ interest in HEC products. It focuses more closely than the existing literature on households’ credit behaviors, attitudes toward credit and locus of control. The paper helps identify the potential targets of marketing campaigns and commercial proposals, and highlights the levers that the banks can focus on in communicating with customers and future prospects. Moreover, this paper suggests that there is a need to develop greater awareness on the part of people who could be interested in these products. Therefore, appropriate financial education projects should be implemented to develop a better “credit” culture, with due appreciation of the usefulness of credit as a means of supporting household budgets.



Cosma, S., Cosma, S. and Peluso, A.M. (2019), "Determinants of older consumers’ interest in home equity conversion products", International Journal of Bank Marketing, Vol. 37 No. 5, pp. 1275-1295.



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