How fintech can increase access for an older population
The UK is facing an economic digital divide. We have a sky-high fintech industry that puts a wide range of banking services in the pockets of millions of consumers. But as a country with an aging population, a growing number of people say they are being discriminated against and even excluded from financial services.
It is known that older customers prefer to visit bank branches. But between 2012 and 2021, the total number of bank and construction company branches in the UK fell by 34%, according to the House of Commons Library. Across Europe, people over 55 make up a third of the population, while a fifth are over 65.
Finance Watch is a European non-governmental organization that conducts research and advocates for financial regulation. “Older people in Europe face a number of barriers when trying to access basic economic tools that keep them in the economic wilderness,” it said.
“The current economic landscape puts older people at risk of exclusion. Going forward, both society and decision-makers must take into account how digitalisation, age limits, low incomes and gender differences affect the results of financial inclusion in life before retirement and retirement. “
Open doors
Younger consumers easily took the transition from cash to digital payments, driven by the pandemic and the shutdown. However, older consumers have struggled. According to the Office for National Statistics (ONS), probably only 7% of people over the age of 70 will be able to shop and manage their money online.
Fear of falling victim to fraud is a major contributor to many seniors’ reluctance to embrace digital technology. According to US research, although in the 1960s they made up only 11.5% of the US population, they accounted for 18% of the victims of coronavirus fraud.
“Financial choices must be available to all customers, regardless of age,” said Simon Hewett-Avison, director of services at the British charity Independent Age. “It may be difficult to support the continued transition to online, while serving loyal customers who prefer to remain offline, but maintaining this choice must remain a priority for the financial industry.”
Hewett-Avison welcomes initiatives such as digital competency programs run by organizations such as Nationwide, Vodafone and Barclays. But more needs to be done, he argues.
“When the cost of living crisis really takes hold, the financial industry is in a unique position to show customers extra support as a pension credit,” he says, pointing to a UK government benefit that replenishes a person’s pension income and can open up a number of other rights, such as tax reduction. Recording is low, with more than 800,000 people missing something, says Hewett-Avison. “We encourage more banks and fintechs to use their platform to promote this life-changing support.”
It may be difficult to support the continued transition to online, while serving loyal customers who prefer to remain offline, but maintaining this choice must remain a priority
The Fintech companies themselves are concerned with demonstrating their commitment to older customers. Monzo, for example, offers customers telephone support and allows them to delegate their account access to a trusted third party, who can support them when needed. In addition to using simple, clear language and offering the possibility of a larger font, the company is researching the accessibility offer of the various mobile phone providers. Monzo has seen its customers in the 70-plus class more than double in the last two years and has 300 customers who are over 90 years old.
Wise runs workshops and training sessions internally to increase its employees ‘understanding of customers’ needs and the situations they will use the app in. It recently ran an “empathy laboratory” where employees put on arthritis simulation gloves and visual impairment glasses to test the user-friendliness of the products.
Revolut points to the increase in the customer base among older age groups. Year-on-year, they have increased by 128% in the age group 55-64, while the number in the age group 65-74 is up 136%.
Government action
The government does not depend on fintech companies and banks to make access easier for older customers. The bill on financial services and markets, which was announced in the Queen’s speech, has provisions designed to support the country’s cash infrastructure. According to Finance Minister John Glen: “We know that access to cash is still important for many people, especially those in vulnerable groups. We promised to protect it, and through this bill we keep that promise. “
This debate is taking place against the background of the growth of ‘AgeTech’, technology aimed at helping older people. In December, for example, Amazon announced the launch of Alexa Together, which is intended to help families caring for older members who still live independently but may need additional support. There is clearly potential for this and other technologies such as AI and machine learning (ML) to make banking technology easier and safer for older people.
Kalgera, for example, uses ML to analyze financial transactions for signs of user vulnerability and the risk that they may be exposed to fraud. It also aims to help older customers share their financial transactions with trusted families and friends in secure viewing mode, so that they too can be notified of risks or possible fraud.
The technology is available, the customer base is large and growing and the potential to tick for social responsibility is clear. The challenge now is for the banks and the fintech sector to meet demand and get the most out of this opportunity.
