Enhancing Inclusivity in Digital Banking

It is time to reimagine how digital banking can better suit the needs of older consumers.

As we age, our banking needs evolve. With the decline of traditional banking services like physical branches and the rise of a cashless society, there is an incredible opportunity to reimagine how banks can better cater to the needs of older individuals. Recent research conducted by Age UK revealed that although a majority of older people now rely on digital services (with a reported 58% banking primarily online), there is still a significant portion (27%) who prefer managing their accounts in person at branches. This number even rises to 58% among those aged 85 and above, with a mere 14% using online banking.

How do the users feel about digital banking?

More needs to be done to include older users in online banking services. Age UK’s research found that a staggering 31% of respondents aged 65 and over feel “uncomfortable” with the idea of banking online, suggesting that the fault may lie in the design of digital banking interfaces. 

This sentiment was echoed in a workshop in March 2022 on inclusive banking by National Innovation Centre Ageing and Design Age Institute, where older adults overwhelmingly expressed concerns about fraud, feeling blamed for their lack of understanding or awareness, and perceiving a lack of support from banks in advising on consumer rights or recovering lost funds. Participants also highlighted the need for transparency and educational resources to foster confidence, empowerment, and independence in online banking. Clearly, our current interfaces need to be reworked to become more user-friendly.

What are the barriers to spending?

A recent report by the Design Age Institute and the International Longevity Centre revealed another crucial aspect: adults aged 60 and over are saving more but spending less due to barriers. Financial concerns, with one in three individuals worrying about future financial needs, act as a barrier to present-day spending. Furthermore, 52% of respondents reported difficulties in accessing and navigating places due to poorly designed infrastructure.

Carly Dickson, an inclusive designer and Knowledge Exchange Fellow at DAI, emphasises the significance of spending in later life and the role inclusivity plays in addressing these issues: “We need diverse, desirable, healthy choices for how we spend our time and money, and we need access to those choices. If our products, services, and environments are inclusively designed with physical, cognitive, sensory, social, and financial access in mind, more people will be able to meaningfully participate in society. This is not only good for our health and happiness as individuals but also for the stability and growth of our economy.” 

How is this reflected globally?

Inclusivity challenges extend beyond the United Kingdom. In Brazil, for instance, a digital bank designed specifically for older users is set to launch this year. Senior Bank aims to combat poverty in the local retiree population, as many struggle with inadequate government allowances. These individuals not only face a diminished quality of life but also endure harassment from banks offering high-interest loans to cover expenses. Ricardo Mucci, the founder of Senior Bank, remarks, “As a retiree, I witness this process firsthand: I receive countless calls from companies offering me loans that I don’t need, but not all elderly people are in the same fortunate position as me.”

So, what can digital banks do to help? Senior Bank, in addition to offering an intuitive interface tailored to accommodate various needs like limited education and visual impairments, provides its users with a marketplace that promotes entrepreneurship. This innovative feature empowers users to generate income and address financial challenges throughout their later years.

Conclusion

By reimagining digital banking interfaces to be more user-friendly, transparent, and supportive, financial institutions can foster inclusivity and empower older individuals to embrace online banking confidently. This shift can have a profound impact on our quality of life, enabling us to overcome financial barriers and seize opportunities well into our later years.