Banks that speak about digitizing often focus on attracting Generation Z and millennials. While these groups are important, another crucial demographic is being left out of the conversation: senior citizens.
All the reasons that banks want to shift other customers to digital banking — cost-effectiveness, efficiency, improved CX — apply to seniors as well. And considering that 83% of U.S. household wealth is held by people over 50, this is a group with considerable financial clout. It’s about time to start bringing grandma and grandpa on the digital banking bandwagon.
PROMOTED
However, more work needs to be done to streamline online banking. Today’s digital banking offerings are characterized by broken journeys, insufficient human input and overly complex security measures. To capture the emerging senior interest in digital banking, customers need to address and adapt to their needs.
Senior Citizens Are Eager To Bank Digitally
Banks and other institutions often automatically write off senior citizens when it comes to designing and promoting digital services. The running assumption is that they prefer pen-and-paper interactions, so trying to bring them to do their banking online would be a wasted effort.
MORE FOR YOU
Why UK Banks Need A Digital Reset
The facts tell a different story. A study by the Financial Health Network found that 81% of customers 60 to 69 own a smartphone, as do 62% of customers older than 70. Of those who own a smartphone, 94% use their device every day. Today’s seniors are curious about and even embracing technology.
Despite being active smartphone users, almost two-thirds of smartphone-using seniors say they have not used their phones for banking transactions in the last three months. Why the disconnect between senior general smartphone usage and smartphone banking?
Barriers To Senior Digital Banking Adoption Still High
Seniors may be going out and buying smartphones — and even dabbling in digital banking — but current digital services simply aren’t designed to encourage consistent usage among older customers. These are the main issues that are holding seniors back from actively using digital banking:
1. Fears Surrounding Security And Fraud
Older Americans are worried about making mistakes or misunderstanding something that would lead to financial loss due to fraud. Sadly, fears around being a target of fraud are justified: The Consumer Financial Protection Bureau estimates that over 3.5 million adults 60 and older were victims of financial fraud in 2017.
In addition, many of the security measures that digital banks use are themselves a source of stress for seniors. For example, SSO and regular passwords are the most ubiquitous type of login security type, but seniors fear losing access to their accounts due to changing or difficult-to-remember passwords.
2. Broken Digital Journeys
More than any other group, seniors require predictability and ease when banking online. The last thing they need is to be unexpectedly bounced to different channels. Yet this is exactly what happens during so many online banking tasks. One study from my company found that 62% of middle-income banking customers have been redirected to a physical bank branch during an online banking task. Another 54% have been asked to print, sign or email documents while banking online. Imagine how this will throw off users who already lack confidence in digital banking.
Analysis: To me this article belongs in the science in tech category, because it discusses the digital divide and how broken digital journeys are impacting people’s ability and willingness to bank online. As older adults hold a great deal of our population’s wealth, I question why they are being excluded from the design of digital processes. This article offers up potential, and pretty straightforward solutions to dive further into. For instance, making each digital process more simplified – as in not forcing users to have to go on different sites, and be forced to type, talk, write etc. all within the same task. Something like face ID makes it easier for older adults to login to sites without having to memorize or find where they put their password. In addition, allowing customers to quickly redirect to a live agent, instead of being forced to click through multiple functions before, can be super useful. Overall, it is important that banks and all services make their digital processes more simplified for both young and older users to have more confidence in their digital abilities. As I have seen from Huntington’s mobile App, they put great effort into making their digital journeys simple, but I wonder what more can be done?
Citation:
Levant, J. (2020, September 16). Council post: Grandma wants digital banking too – don’t ignore her needs. Forbes. https://www.forbes.com/sites/forbestechcouncil/2020/09/17/grandma-wants-digital-banking-too—dont-ignore-her-needs/?sh=63264a7555e0
