Times of Malta recently ran an editorial on the need for ‘age-friendly’ banks following the NGO St Jean Antide Foundation’s listing of a set of problems faced by older adults when accessing modern-day banking services.
Of course, it is incorrect to argue that all elderly persons face such challenges. Many have embraced modern technology to stay active in retirement and fully integrated in their community.
But it was heartening to see evidence, just a few days later, that consciousness is growing of the need for elderly people to be better integrated into our increasingly digitalised society: NGOs, banks and bankers’ associations appear to be seeking ways to make banking safer for those less familiar with modern banking practices.
We reported that, thanks to a recent initiative coordinated by the Malta Bankers Association (MBA), ĠEMMA, an independent financial capability portal supported by the government, and the National Association of Pensioners, older adults could attend four weekly two-hour teaching sessions delivered by industry professionals. The aim was to promote financial literacy among pensioners in the digital age.
Petra Ellul-Mercer, on behalf of ĠEMMA, said that research clearly shows the share of older persons in the total population will continue to increase significantly. That means focused efforts must continue to be made to provide safe banking processes for older adults who have failed to adapt well to the continuously evolving banking technology, lest they become increasingly marginalised.
The government has a substantial shareholding in two banks that serve the local community. Its support to these banks must go beyond that of a significant shareholder to one that champions fairness to all sections of society, including older adults who, for some reason, are unable to cope adequately with modern banking technology.
The most basic banking need for anyone is to have a savings account to deposit and withdraw cash as and when required.
Unfortunately, recent clients’ onboarding processes have been made very onerous. These processes need to be reviewed to make them more risk-based. A pensioner trying to open an account with a bank or trying to withdraw a significant amount of cash does not pose the same financial crime risk as some businesses.
Similarly, many older adults cannot assess the inherent risks of certain investment products that various financial services providers promote.
Some investment products are unsuitable for the community’s proverbial ‘widows and orphans’ sector with very low-risk tolerance. Regulators, banks and other societal leaders need to do more to ensure that no older person who is insufficiently literate in financial matters is sold unsuitable investment products.
The initiatives taken by the MBA and ĠEMMA are a step in the right direction. No one should expect commercial banks to stop the spread of digitalisation in banking. But banks must consistently put in practice their corporate social responsibility commitment by helping older adults to embrace online banking services and providing adequate alternatives for those who require other low-tech solutions.
The government must also use its clout to promote fairness to older adults. This can be done not only through moral suasion but also by defraying some of the costs incurred by banks to serve older adults. One such cost relates to retaining the benefits of a personal, in-branch experience at least in densely populated towns.
By utilising the technology at their disposal, banks can also replicate the face-to-face interactions that the elderly value.
No one in the community should have to feel marginalised through a lack of financial literacy or digital know-how. These various strategies would pave the way for more age-friendly banking.