- Digital-only banking risks marginalising older customers
- Real world options must be retained to better serve our ageing population
- The increasing digitalisation of our everyday services leaves older people feeling abandoned and lonely
The trend of financial institutions shifting to digital-only platforms is leaving a growing number of older people behind, new research shows.
In the UK there is now overwhelming demand for banks and other financial services providers to retain real-world approaches — including maintaining branches and staffed locations — to better serve older members of society who are at risk of digital exclusion.
The vast majority of older people aged 66 plus (88%) now believe that banks should be forced to retain more physical branches.
Additionally, 78% of that same group believe that the increasing digitalisation of society marginalises older people, who often face barriers to accessing, understanding, and using technology.
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.
These are just some of the worrying findings of one of the most comprehensive studies of its kind: part 2 of The New Ageing Index, 2024, from Home Instead, the UK’s largest private provider of home care.
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.
And the study found that the consequences of the digital divide go beyond access to banking: nearly three quarters of all those surveyed (70%) believe that greater digitalisation within society increases loneliness and isolation for older people.
To bridge this divide, urgent action is needed to make technology more accessible for older adults. This includes programs and resources to help them understand, adopt, and effectively use digital tools.
On a more positive note, the research also shows technology has the potential to enhance the lives of older people, particularly in areas like home care and health monitoring, which could offer greater independence and comfort for those who choose to age at home. Almost two thirds of those surveyed (65%) believe this to be the case.
Tech companies themselves must also do much more to serve older generations. Over three-quarters (76%) say tech providers (hardware makers and social platforms) need to make products that are easier for older people to use.
Martin Jones, Home Instead CEO, said: “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.
“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.”
The need to encourage lifelong learning to future proof digital skills and tackle digital inequalities is paramount with 74% of those surveyed believing this to be the case. This rises to 77% for the older people surveyed showing the willingness to continue learning is very much there.
Savanta surveyed over 1,000 people from a nationally representative sample – including a detailed examination of the experience of the country’s volunteer carers – to attain an insight into what it means to age in Britain in 2024. And to see how ageing is perceived more widely.
This is the second report of four from that in-depth research, which will be repeated quarterly across a full calendar year, looking into new aspects of age and ageing each time.
FAQs Based on the Article
These FAQs and responses are research conducted by MadTech Magazine and are not attributed to the original author of the article.
1. Why are older people particularly vulnerable to the shift towards digital-only banking?
Older adults often face barriers such as limited access to technology, difficulty understanding or navigating digital platforms, and physical or cognitive impairments that make in-person support essential. Additionally, many seniors have lower levels of confidence in using online banking, which increases their risk of digital exclusion and isolation from vital financial services.
2. What steps can financial institutions take to better support older customers?
Banks can adopt a hybrid approach by maintaining physical branches, offering in-person support, and ensuring their digital platforms are user-friendly for older adults. Providing free training programs, creating simplified app interfaces, and deploying customer service teams specializing in elder care can also make banking more inclusive.
3. How can technology providers make their products more accessible for older adults?
Tech companies can focus on designing devices and applications with intuitive interfaces, larger fonts, and voice-activated commands. Offering hands-on tutorials, robust customer support, and consulting older users during the development process can also help. Collaborating with community organizations and care providers to provide accessible tech education would be a major step forward.
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