Is digital-only banking at risk of marginalising older customers? There are concerns that the increasing digitalisation of our everyday services leaves older people feeling abandoned and lonely.
Research reveals 88 percent of people aged 66 and older believe that banks should be instructed to retain more physical branches. Additionally, 78 percent of the same group think the increasing digitalisation of society marginalises older people, who often face barriers to accessing, understanding, and using technology.
These are two findings from a study titled The New Ageing Index, 2024 from Home Instead. The index is an attempt to discover what ageing in 2024 really looks like and explores some of the key issues facing older people and their carers today.
In this case, the two broad findings reveal a divide based on demographics in terms of accessing digital financial services.
Furthermore, the survey finds nearly three quarters (70 percent) believe that greater digitalisation within society increases loneliness and isolation for older people.
The survey indicates that for many older people, in-person banking remains the only option they are confident with, underscoring the critical need for physical bank branches to avoid leaving this vulnerable group isolated and unsupported.
To bridge this divide, action is required to make technology more accessible for older adults. This includes improved understanding and methods to encourage older members of society to adopt, and effectively use digital tools.
The need to encourage lifelong learning to future proof digital skills and tackle digital inequalities is paramount with 74 percent of those surveyed believing this to be the case. Awareness-raising activities help to spread the word about the benefits of being digital, and inspire and motivate people to engage with digital inclusion services.
One factor that outs people off from using financial technology is its apparent complex design. Over three-quarters (76%) say technology providers (hardware makers and social platforms) need to make products that are easier for older people to use.
Commenting on the study, Martin Jones, Home Instead CEO, states: “As our population ages, the need to address the social disparities which digital culture is creating is one of great urgency. A collective approach—combining the retention of physical banking services with efforts to improve digital inclusion—could provide older people with a more balanced and supportive system that meets their unique needs in both the physical and digital realms.”
Jones adds: “Older people want to be involved and valued but this can’t happen if technology leaves them behind. The willingness to learn and adapt is there so more must be done across the tech sector to help older people stay connected and be a part of our increasingly digital world.”
