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. <\/p>\n\n\n\n
All the reasons that banks want to shift other customers to digital banking \u2014 cost-effectiveness, efficiency, improved CX \u2014 apply to seniors as well. And considering that 83% of U.S. household wealth<\/a> is held by people over 50, this is a group with considerable financial clout. It\u2019s about time to start bringing grandma and grandpa on the digital banking bandwagon.<\/p>\n\n\n\n PROMOTED<\/p>\n\n\n\n However, more work needs to be done to streamline online banking. Today\u2019s 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. <\/p>\n\n\n\n Senior Citizens Are Eager To Bank Digitally<\/strong><\/p>\n\n\n\n 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.<\/p>\n\n\n\n MORE FOR YOU<\/p>\n\n\n\n <\/a><\/p>\n\n\n\n Why UK Banks Need A Digital Reset<\/a><\/strong><\/p>\n\n\n\n The facts tell a different story. A study<\/a> 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\u2019s seniors are curious about and even embracing technology. <\/p>\n\n\n\n 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?<\/p>\n\n\n\n Barriers To Senior Digital Banking Adoption Still High<\/strong><\/p>\n\n\n\n Seniors may be going out and buying smartphones \u2014 and even dabbling in digital banking \u2014 but current digital services simply aren\u2019t designed to encourage consistent usage among older customers. These are the main issues that are holding seniors back from actively using digital banking:<\/p>\n\n\n\n 1. Fears Surrounding Security And Fraud<\/strong><\/p>\n\n\n\n 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 <\/a>that over 3.5 million adults 60 and older were victims of financial fraud in 2017. <\/p>\n\n\n\n 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.<\/p>\n\n\n\n