The number of fraud cases related to the elderly surged from 9,097 in 2021–22 to 13,530 in 2022–23, according to the Reserve Bank of India’s annual report for FY23. While fraud is a problem for all bank customers, it is particularly big for senior citizens, a vulnerable group, and is only getting bigger by the day.
According to a report released by the United Nations Population Fund (UNFPA) in collaboration with the International Institute for Population Sciences (IIPS), India in 2022 would have had more than 149 million people aged 60 years and older. This number is now projected to reach 347 million by the year 2050.
While the young population is indeed an attractive market for banks that have various digital financial services, such as digital banking, the rising elderly population is also becoming vital for them as a valuable customer base.
For several decades, banks have dedicated efforts to ensure that physical access to branches is made convenient, especially for senior citizens, by enhancing features like doorstep banking. However, in the arena of digital banking, they are still facing challenges, particularly when catering to the needs of the older demographic. Despite the growth of digitalisation and the increasing adoption of web channels, mobile apps, payment cards, and wallets, it is imperative for banks to prioritise the support and accessibility of services for senior citizens in this evolving landscape.
Also read | Cyber financial fraud: What RBI can do to protect senior citizen victims
Navigating e-banking challenges for senior citizens
Senior citizens have unique financial needs in India. Their digital behaviour and personality are also distinctive when compared to the tech-savvy young generation of the nation. However, there is no differentiated approach to providing digital offerings, which gives rise to several factors that impact senior citizens' adoption of digital banking. As the ageing population increases, the number of people with disabilities, particularly vision impairment, is rising significantly.
Senior citizens have grown up in a more trustworthy era. And often in times of modern and continuously evolving technology, they often become targets for fraudsters exploiting this inclination. Impersonating bank employees or government agents, these scammers manipulate the inherent trust of the elderly, coaxing them into divulging sensitive information and rendering them susceptible to fraud.
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Can banks make it easy for senior citizens?
What senior citizens require is the ease in functionality and predictability whenever they are using digital banking services. The last thing they need is to be redirected to different channels, which is an issue for even digital natives. However, this is exactly what happens during digital banking services, which is a deterrent factor for a senior citizen’s lack of confidence in using e-banking services. Moreover, frequent security checks, memorising PIN codes, and automatic session logouts aggravate the inconvenience for them.
Banks need to redesign their digital journeys to be simple and seamless in a bid to ensure that senior citizens do not suffer inconvenience, give up and head towards the branches. Primarily, it is necessary to follow a customer-centric approach, as it tends to make sure that the users get a personalised experience. This approach paves the way for simplifying and improving accessibility for all.
Here's how banks can help:
Accessible digital onboarding
Facilitate digital onboarding of essential services by incorporating digital KYC processes and facial biometrics, enabling users to open new accounts without the need for physical branch visits, catering to those with mobility issues or residing far from branches.
Enhanced digital experience
Leverage biometric recognition in mobile payment transactions to simplify the process for senior citizens, removing the need for PINs or passwords while maintaining high security.
Accessible payment card features
Incorporate identification bumps on payment cards to distinguish between different cards.
Add an accessibility notch, a crescent-shaped cut-out, aiding users, especially those with sight impairment, in orienting the card for insertion into ATMs or card readers.
Introduce biometric cards with fingerprint readers, eliminating the need for users to remember or enter a PIN at checkout.
Implement Braille-embossed cards, larger fonts, and high-contrast text to enhance readability, particularly during online or telephone transactions.
Improved physical delivery of cards
When banks send new credit and debit cards to senior citizens, a simple how-to-use guide can prove to be useful. Provide large QR codes on accompanying letters, allowing users to scan and receive audio instructions on card activation, obtaining a PIN, and understanding associated rewards and benefits in their preferred language.
These solutions collectively aim to create a banking and payments environment that is inclusive, accessible, and user-friendly, particularly for senior citizens and those with disabilities.
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Endnote
Just like any service sector, for banking and finance too, customer-centricity is always the heart of the matter. Digital banking services must be made simple, convenient, and secure for seniors to adapt. We are witnessing a surge in contactless services, and this is paving for all to embrace digital transformation. Designing solutions that are tailored to the growing needs of the senior population and particularly those with disabilities will be our answer to creating a truly accessible and inclusive financial world.
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