Ageism is arguably the last bastion of discrimination that society seems unwilling to assail. One example that emerged this week is to do with the erosion of older adults’ ability to manage their own finances.
The community-based NGO St Jean Antide Foundation listed some of the problems that the elderly face when trying to access modern-day banking services – from the reliance on ATM withdrawals to extremely long queues at physical bank branches.
The foundation says that “many elderly people are choosing not to deposit money at the bank”. This practice exposes them to severe risks, from financial abuse to robbery.
This is no less than an injustice. The way to redress it is to make it easier again for older adults to undertake banking transactions. As they become more vulnerable, elderly persons are not vociferous enough to lobby businesses and the government to protect their rights.
Because money is so fundamental to subsistence and property, it can be argued that the elderly have a right to age-friendly banking.
A number of social research studies confirm there are three main elements preventing the take-up of online services, leading to digital exclusion: lack of appropriate hardware, lack of connectivity and lack of skills and confidence in navigating the online world.
The closure of branches by most local banks is aggravating the problem. The foundation says that “excessively long queues at physical bank branches mean many senior citizens find themselves waiting for long periods on pavements outside branches”.
Banks must implement more effective strategies to ensure that older adults are not marginalised to the fringes of society
Banks argue that the digitalisation of banking services is irreversible and that they provide adequate training for all their customers so they can master the skills they need to navigate online banking systems. This strategy is clearly not effective enough to make older adults feel at ease with electronic banking.
In a recent survey, BCG, the UK consulting firm, found that during the COVID-19 crisis only two per cent of the over 65s surveyed had signed up for online banking. Santander Bank concurred with these findings, reporting that only 0.5 per cent of their customers over 55 took up banking digitally during the pandemic.
Banks must implement more effective strategies to ensure that older adults are not marginalised to the fringes of society.
Active ageing strategies will only be credible if the government, banks and regulators take action to guarantee age-friendly banking for all.
The government has often used taxpayers’ money to support at least two of the larger local banks when they needed capital to satisfy regulatory requirements. The government has the clout to get the management of all banks that serve the local community to sit around a table and devise ways of mitigating the growing frustration of older people with banking facilities.
Banks would say that, as a business, they are not responsible for ensuring that their more vulnerable customers are treated differently to other customers. Although they boast of their commitment to corporate social responsibility, they fail to target their elderly clients for fair treatment.
If banks fail to act, then regulators should ensure that commercial banks’ commitment to CSR is enshrined in their banking licences as a condition to raise deposits and provide profitable banking services to the community.
The foundation is right to have expressed concern that the financial abuse of elderly citizens is increasing. The government, banks and regulators must act now to deal with this form of age discrimination.
It is time for bank leaders to change their practices in the way they serve older adults.