Every year on October 1 we celebrate the International Day of Older Persons as established by the United Nations on December 14, 1990. The theme chosen for this year’s commemoration is ‘Digital Equity for All Ages’.
The aim is to bring awareness of the importance of digital inclusion of older persons while tackling stereotypes, prejudice and discrimination associated with digitalisation, taking into account sociocultural norms and the right to autonomy.
I recently took part as a panellist on a webinar organised by ĠEMMA, discussing ‘Digital financial literacy: are we leaving the elderly behind?’.
Digitalisation has accelerated rapidly in various aspects of life, becoming immediately apparent in the payment and banking sectors. However, while a swift digital transformation is viewed favourably by the tech-savvy and younger generations, it also increases the risk of financial exclusion of the ever-increasing elderly population.
Cash continues to be the payment of choice for 75 per cent of those aged over 55 and only 5.2 per cent of those in their 70s use digital banking tools.
Financial inclusion means that individuals have access to useful and affordable financial products and services that meet their needs, including transactions, payments, savings, credits and insurance delivered in a responsible, safe and sustainable way.
Being able to have access to a bank transaction account is the first step towards financial inclusion since it allows people to store money and send and receive payments. Financial access is a right and a necessity as it facilitates day-to-day living and allows individuals and families to plan for everything, from long-term goals to unexpected emergencies including health issues that may arise. Access to finance is a right which allows planning of adequate housing, food and clothing.
Having access to and controlling one’s own finances helps individual older persons to retain autonomy and independence, feel secure and empowered while ageing and growing old with dignity.
Given the importance of financial services in everyday life, it is, thus, essential that financial services and products are available that meet the needs of older persons.
Issues faced by some older persons like reduced physical access to bank branches and barriers arising from low digital capability need to be addressed. An ageing population will also mean a higher proportion of customers with health issues including physical and sensory impairment and cognitive decline leading to a greater need for face-to-face communication; situations where banks have to factor in.
A large percentage of adults aged 65 and older do not have basic digital literacy skills, others have never used the internet and, among these, some do not even have internet access at home. Some people will never be able to gain digital skills but others could with the right help.
Some older persons willingly seek help from trusted family or friends but, in other situations, this is not always appropriate and can make older persons feel uncomfortable, embarrassed or more seriously vulnerable to abuse if they hand over information like bank account details.
A large percentage of adults over 65 do not have basic digital literacy skills- Mary Vella
Technological developments may amplify the vulnerability of older persons, for example if they are less familiar or have limited access to digital technology.
This may make them more prone to abuse, fraud and scams and, as such, it is essential that appropriate financial consumer protection arrangements are in place, supported by related financial inclusion and financial literacy initiatives.
We know that financial abuse is a reality in later life, especially when older persons suffer from some kind of cognitive impairments with fraudulent caregivers misusing or exploiting the older person’s monetary assets and savings.
Ageing is associated with increased risk and higher rates of visual impairments, making use of digital devices increasingly difficult. Another important issue is the decrease in physical strength, speed of execution and hand-eye coordination resulting in difficulty using objects like ATMs or smartphones for transactions.
Technology and its associated capabilities will continue to accelerate and evolve but the question is, in these circumstances, faced with these rapid developments, what can we do so as not to discriminate against older persons? While the move towards digitalisation of financial services offers many benefits, such as increased access to services at all times of the day or night, it is vital to ensure that no one is left behind.
Banks and financial institutions should help older persons by simplifying processes. Literature should be simplified and be easy to understand, besides providing support when necessary so that persons can understand.
Non-digital channels should continue to exist and be progressed, besides helping willing older persons to develop the necessary skills to digitally engage since financial exclusion causes increased anxiety and genuine fear of the possibility of being financially exploited and abused.