Digital banking has been around for a few years and has experienced a good response from its consumers, yet some problems are keeping the elderly or senior citizens from using it.

Digital banking is different than online or mobile banking and the transactions are done using gadgets like mobile phones via apps. Digital bank accounts do not have any physical branches. So, it saves the elderly a physical visit to make financial transactions.

Some of the problems the elderly are experiencing with the use of digital banking we will be examined in this article. Also, some likely solutions will be preferred.

• What is Digital Banking?
• What does a Bank for the Elderly Look Like?
• How Can You Choose The Right Bank For The Elderly?
• Myths the elderly have about Digital Bank Accounts
• What is the Best Bank for The Elderly?
• What’s the Difference Between Senior Citizen and Elderly?
• What Are The Major Challenges Facing The Elderly?
• What Are The Disadvantages of Digital Banking?
• What Are The Problems With Online Banking?
• What Are The Advantages and Disadvantages of Virtual Banking?
• Online Banking For Elderly
• Online Banking For Senior Citizens
• Age-Friendly Banking
• What Are The Challenges of Mobile Banking?

What is Digital Banking?

Digital banking is the digitization (or moving online) of all the traditional banking activities and programs services that were historically were only available to customers when physically inside of a bank branch. This includes activities like

• Money Deposits, Withdrawals, and Transfers
• Checking/Saving Account Management
• Applying for Financial Products
• Loan Management
• Bill Pay
• Account Services

Consumer preferences quickly shifted to online and mobile devices, but many financial organizations struggle to adapt their banking experiences to online channels and to the smaller mobile device screens.

Read Also: Risks and Benefits Associated With Advanced Mobile Banking Technology

Unfortunately, banks can no longer afford to wait to invest in digital transformation because customers are increasingly willing to switch banks for digital features such as bill pay, mobile payments, and loan applications.

What does a Bank for the Elderly Look Like?

With this change in the population we are living in a new era of fewer working people and more elderly people, and that creates big changes in the customer’s behavior and expectations of commercial and financial services. So, it is important for all customers and all financial service providers to be aware of the importance and special needs of the older customers. There needs to be new thinking applied to the design of services that are friendlier to this type of customer.

Services

The bank must adapt to the emerging situation by educating its employees about the thinking and special needs of older customers. For example, many older people still prefer to make transactions inside a branch office, rather than using an ATM or online service, because they worry about the security of electronic transactions.

Also, many older people suffer from cognitive difficulties and require assistance during complicated banking transactions.

Consider that even working-aged people sometimes forget their account password or PIN. The branch staff and customer service agents at call centers must be trained to help the increasing number of customers who may be experiencing these types of difficulties.

In addition to these new services, innovation is needed. For example, many older people have limited options for transportation to the bank, and so cannot access the products and services being offered. It may be better if the customer’s needs could be met without them needing to travel to the bank.

Or, what if there was a mobile bank branch with a convenient door-to-door service? One example of this in action comes from the Royal Bank of Scotland (RBS), which already has over 30 mobile branches that cover the United Kingdom. They travel over 11,000 miles and serve 600 sites each week.

Elderly Friendly Design

A friendly design for older people is also an important consideration. For example, the branch floor plan should help reduce queue times so that older customers do not need to stand for long periods of time. The use of a ticketing system for customers waiting for services also reduces standing time, which especially helps older people to be able to access services.

Then, the quantity and comfort of waiting chairs needs to be evaluated. Vision problems are common among the elderly, which makes it more difficult for them to conduct financial transactions, such as when using an ATM machine.

Simple changes can help make ATM and credit cards easier to use, such as embossing different shapes and colors to help indicate the direction to insert the card into the ATM machine.

Also, the design of paper forms used in banking transactions is very important. Customers are required to fill out many forms for important transactions, yet they contain confusing instructions and are difficult to understand. A friendlier paper form design can help older people, and everyone else.

A System for Innovation

Technology brings innovations to financial services.

There’s a new concept in the banking and financial services industry called ‘fintech’. It promises to improve and automate the delivery of financial products by using new technologies. Fintech plays a big role in the effort to improve access to banking and financial services for older people.

It is starting to show benefits in the areas of video calls and biometric recognition, which can eliminate the problem of forgotten passwords. But before widespread use can happen, banks must help to get these technological innovations integrated into daily life by educating customers about them and the new financial opportunities the technology offers.

According to research by the financial consulting service, True Link Financial, there is elder financial abuse of America senior citizens resulting in losses of over 36 billion US dollars each year.

In the UK, the Consumer Protection Organization says the average age of victims of financial crime is 75 years old. This shows that older people are at high risk to become the victims of fraud and to be taken advantage of.

So, financial institutions should develop systems of data analysis with advanced algorithms to combat crimes against the elderly. This process may require financial institutions to contact the customer’s caretaker, lawyer, family member or a government officer in case of serious concerns.

Products

One of the biggest problems older people face when choosing financial products or services is the age limitation. Some products also seem to treat older people unequally by charging them a higher insurance fee.

Banks and financial institutions should think about creating new products for the growing number of older people, who are also living longer now and thus able to absorb higher financial risks than elderly people of past generations.

So, there should be new thinking about investment plans and other products designed for this new generation of elderly citizens in this new era.

Innovation can be the answer to the decumulation of wealth as well. Banks should pay attention to single elderly people who tend to live alone without descendants. These types of people need different kinds of loans that are specifically designed for retired people, such as reverse mortgages. These products can provide people the support they need for long-term, secure living.

How Can You Choose The Right Bank For The Elderly?

Whether you’re looking for a new checking account for yourself or a loved one, it’s worth the time to research checking accounts designed specifically for the elderly. These specialized checking accounts sometimes offer features that you won’t find in other accounts.

However, just because it’s labeled as a “senior” account doesn’t mean that it’s the better option. Sometimes a bank’s regular offering is a better deal, but you won’t know for sure until you dive into the details for yourself.

The Features of a Bank’s Special Account

Whether you’re a senior, a college student, or a small business owner, finding a specialized account that’s designed for your situation can offer perks that you won’t find anywhere else. Often, switching to these accounts costs little more than the time you invest in the search.

Banks want the business of seniors, and they’ll offer competitive perks to entice them to join. Look at some of the perks offered by well-known banks:

• U.S. Bank: While there isn’t a special account for seniors, U.S. Bank will waive monthly maintenance fees for anyone 65 or older with an “Easy Checking” account, regardless of the account’s balance or deposit activity.
• TD Bank: The “60 Plus Checking” account perks include free money orders and checks. There is a $10 monthly fee, but this fee is waived if the account holder maintains a minimum daily balance of $250. Account-holders also get discounts on home equity and personal loans.
• BB&T: If you’re 55 or older, BB&T’s “Senior Checking” account gives you free personal checks, and in the case of a medical emergency, the checking account will allow for one early CD withdrawal, penalty-free. There is a $10 monthly fee, but the fee is waived if you maintain an average balance of $1,000 or make direct deposits of at least $500 every month.

Other banks and credit unions offer perks, too. Wherever you decide to shop for a new account, don’t forget to ask about any senior discounts.

What to Look For in a Bank’s Special Account

Assessing your needs isn’t much different than when you were younger, but you might have different answers for some of the questions. As you consider your options, ask yourself:

• Are you looking for a bank with physical branches and does this bank have locations close to your home?
• Are you a snowbird or frequent traveler who needs a national bank instead of a regional one?
• Do you write a lot of checks?
• Is a high-interest rate on deposit accounts important to you?
• Does the fee structure seem fair?
• Do you use ATMs a lot, and what ATM perks does this bank offer?
• Are the bank’s app and desktop site easy to navigate and understand?
• How does the bank compare to a local credit union?

However, just because a bank account is marketed as ideal for the elderly doesn’t mean that it’s a better deal. For example, you might find a senior checking account offered with a $10 maintenance fee, even though another account carries only a $5 fee.

In other instances, you might find that a checking account of any sort doesn’t make sense. If you have to keep $1,500 in the account to qualify for a dividend, you might be better off keeping the money in a savings account or in a Certificate of Deposit where interest is paid regardless of the balance.

In addition to taking a close look at the fees, you should also consider the features in detail, and how they’ll improve your life. If you don’t regularly send cashier’s checks or money orders, the perk of getting those for free isn’t much of a perk at all.

Bank’s Special Account Alternative

Even if an account isn’t labeled as a “senior” account, that doesn’t mean seniors won’t benefit from opening the account. Keep in mind, this is a list of checking accounts, which usually come with far lower interest rates than savings accounts. If your primary goal is to earn high interest on your deposits, you might consider shopping around for savings accounts, instead.

Here are a few of the best checking accounts for seniors or elderly:

Charles Schwab Bank High Yield Investor Checking: If you already do your investing with Charles Schwab, you can take advantage of the waived fees for the bank’s checking account. The account also offers a generous ATM policy, as well as a 0.15% interest rate.

M&T Bank Classic Checking with Interest: This type of account is only offered to customers who are older than 50. There are several ways customers can waive the monthly fee, making it more likely that the account will effectively be free for you. The 0.01% interest isn’t anything to write home about, but again, interest rates shouldn’t be your primary concern when shopping for checking accounts.

Ally Interest Checking: If you don’t remember the last time you visited a physical bank branch, it may be best to opt for an online bank like Ally. Being a digital bank, Ally can cut down on fees while still offering a 0.1% interest rate on accounts with less than $15,000. If you keep more than $15,000 in your account, you’ll earn 0.5% interest.

Regardless of how much you keep in your account, you won’t incur a monthly maintenance fee. Ally also offers access to a wide network of fee-free ATMs, as well as limited reimbursements for out-of-network ATMs.

Myths the elderly have about Digital Bank Accounts

Not safe

These fears are baseless as these platforms adopt additional security measures to ensure the consumer’s data is safe. Even if the device on which the senior citizens had been carrying out the financial transactions gets stolen, it is unlikely that their details get into wrong hands.

Most digital bank accounts are floated by newer tech-based companies that are built with the most modern security technology. Also, added permissions and features like security questions while performing the transactions diminish the possibility of misusing the app.

It takes longer to access

A Digital Bank Account does not require the elderly person to wait in line or fill a form. They just have to log in and carry out the transaction using minimal steps. They just have to remember that their internet connection is strong enough to enable them to make the transaction as soon as possible.

Furthermore, these banks enable financial transactions 24/7. As a precautionary measure, we advise the elderly to only use secure internet connection and avoid public wi-fi zones while making transactions.

Only for tech-savvy

Digital banking does not require their elderly users to be tech-gurus. This is because of these digital platforms put-in special and sincere efforts, keep in mind the technical challenges of the elderly persons and make their transactions extremely convenient.

Not only this, the digital banks provide these valuable customers with all the facilities (and added features) that the traditional banks offer. These facilities include getting statements of all the transactions, transferring money, recharge or payment of utility bills.

It is impractical

On the contrary, it is one of the best features digital banking offers. It just minimises the possibility of crossing the last date for utility payments and rather allows its users to make the payment at the last moment without going out or standing in queues.

For example, if the elderly person realises he is about to cross the due date to pay the electricity bill and has just a few minutes left on him, he can just log in to the Digital Bank Account and make the payment.

What is the Best Bank for The Elderly?

No annual minimums. Free debit cards. Competitive interest yields. These are some of the attractive features customers look out for in there bank of choice.

Checking and savings accounts offer specific benefits for senior citizens, but no two banks are the same. We’ve considered numerous privacy policies, interest rates, perks, and banks across the country to showcase the very best bank for the elderly or senior citizens.

1. Discover

Discover offers one of the best APY interest rates, as well as account-specific benefits. There’s no monthly fee, no minimum deposit to open the account, and no minimum required balance to keep it open.

Discover also offers a 2.10% APY regardless of your account balance. If you have a penny in your account, that 2.10% applies. This means that you can enjoy the full benefits of Discover’s savings accounts without having to keep a large portion of your capital in the bank.

2. CapitalOne Bank

CapitalOne offers an excellent savings account with constant access, and 24/7 support both online and on the phone.

They are one of the only banks to offer an FDIC-insured money market account with a 2.00% APY interest rate, which is extremely high for any bank. For that money market savings, the minimum balance is also very low.

Standard 360 savings accounts require no minimum balance, and the same goes for kids savings accounts. There’s 1.00% APY rate that will add compound interest as the child/grandchild grows.

Lastly, they offer two different IRA savings accounts: Traditional, and Roth. There are a lot of high-quality options to choose from with CapitalOne.

3. American Express

While American Express isn’t the first bank that people think about (they usually associate AE with credit cards), it is one with the highest interest yields for personal savings accounts.

There are no monthly minimum balance requirements and no fees. Everything is FDIC-insured and offers 24/7 account access to almost every single feature.

One thing that stands out about American Express is that you can keep your standard checking account, and link them together. You don’t have to switch banks.

You can link up to three bank accounts if you have joint savings with someone close to you. Transfer funds any time of the day through their automated phone service as well.

4. Ally Bank

Ally, much like CapitalOne, is an online bank. Because of that, they’re able to offer excellent interest rates on standard and CD savings accounts.

Ally FDIC insures their deposits and requires no minimum balance. There’s also no monthly maintenance fees. The catch is that there are limited withdrawal windows, but they are generous enough to not interfere with your life.

One of the best features of Ally savings accounts is their compound interest savings.

That means that your interest rate is calculated every single day after your interest is deposited, giving you a higher yield with no work on your part.

5. Citizens Bank

Citizens has a plethora of savings account options, and even if you can’t meet the minimum requirement for some of them, the fee is extremely minute.

There is no minimum requirement to open most savings accounts. If you were going to open a College Saver account for a grandchild, there is a small minimum.

Basic savings accounts offer a very small APY interest rate, but linking it with another Citizens Bank account gives you an APY bump.

A Platinum Plus Savings account has a decent interest rate, and doesn’t feature any monthly maintenance fees regardless of your balance.

6. People’s United Bank

People’s bank is not the highest interest yield, but it is excellent for a hands-free, no-nonsense savings accounts and can be considered as one of the best bank for seniors.

The APY interest rate is low, but the monthly maintenance fee is as well—and you can waive that fee with a humble minimum balance.

Enjoy automatic transfers from your checking to your savings, fraud monitoring, and inexpensive checks. People’s United features a great online bill pay option, which automates your bill-paying process with minimal setup required.

The minimum monthly balance for your savings account is only $50.00.

7. Marcus

his Goldman Sachs’ bank is credited for having excellent APY rates of up to 2.15%. Even at the highest possible APY, the next bank on our list—TD Bank—doesn’t compare.

Marcus requires no minimum deposit, has no fees, and is completely FDIC-insured. You could even open an account without an initial deposit for later use.

Marcus also has a handy online calculator that tells you exactly how much you can expect to earn through high-interest yields. They compare their rates to the top fifty banks in the United States.

8. TD Bank

Like others on this list, TD Bank offers a good basic interest for their secured savings accounts. TD growth money market accounts have a higher than average yield for most savings accounts as well.

TD preferred savings accounts are good as well, though they don’t offer as much of an interest yield for smaller accounts.

With each account type that they offer, there is an APY bump feature that allows you to increase your interest rate almost immediately, so long as you link a TD checking account as well.

If you link two accounts, you’ll also enjoy low threshold account minimums to waive the monthly maintenance fee.

9. Gate City Bank

Opening a personal savings account at Gate City Bank could yield a high interest rate, depending on what you choose. They offer money market savings accounts, traditional personal savings accounts, and even relationship savings.

Additionally, you can opt for a minor savings account if you don’t want to put all of your money in one bank.

If you’re interested in savings accounts for your children or grandchildren, the Coverdell Education Savings plan will appreciate over time with a high interest yield.

With more savings account options, you’re not just putting your money in a secure place; you’re earning more interest and increasing your capital.

10. Great Western Bank

Apart from their comprehensive and excellent customer service team, Great Western Bank offers a fairly competitive interest rate.

Their savings accounts only require a $50.00 minimum to open. If you need to transfer funds into your checking account, you won’t incur any penalties or fees.

As is expected in today’s world, you can bank on your smartphone twenty-four hours a day. Their intuitive app makes it easy to transfer funds without needing to go into the bank.

Lastly, most ATM fees are refundable. This means you will pay them upfront, but may receive a rebate on your account later.

What’s the Difference Between Senior Citizen and Elderly?

What makes someone a senior citizen? Age definitions tend to be a moving target. Some places offer senior discounts or memberships to people who have barely passed the half-century mark, but social programs like Medicare are generally off-limits to people under 65. So when exactly does a person become a senior citizen? Where is the boundary between middle age and old age?

The short answer is that it varies. But while there is no universally accepted standard regarding the age at which people become senior citizens, most Western industrialized nations consider the onset of old age to be at age 60 or 65. That’s when most Americans retire and become eligible for assistance programs based on age.

Here are some of the meanings and connotations behind terms that are commonly used to describe people in the later stage of life:

• Senior citizen: Variably defined as an elderly or retired person, this term generally refers to someone who is at least 60 or 65 years of age. Some people consider “senior citizen” to be a patronizing term. Interestingly, “senior” on its own does not seem to have the same negative connotations: In the workplace, a senior employee is often seen as experienced, wise, and deserving of respect.
• Old: Strictly speaking, an old person is someone who has been alive for a long time. By its nature, it is a subjective term. (Who decides what constitutes a long time?) In our youth-obsessed culture, being “old” is almost universally seen as negative, and it is often associated with being useless, fragile, or obsolete. Many people go to great lengths to avoid having others think they are old. On the other hand, “older” is a relative and more neutral term; an older adult has simply lived longer than someone else. “Older” also implies a progression—you might be older than a teenager, but that doesn’t mean you’re “old” yet.
• Elderly: Being in an advanced stage of life, well beyond middle age, is the basic elderly definition. Medical professionals do not agree on what age is “elderly,” however. The term can be used in a compassionate or sympathetic sense, but it often carries connotations of poor health or diminished capacity. Some people object to being described as elderly, believing it implies that they are extremely old or very frail. However, “elder” is a term of respect in many circles (e.g., among tribal elders, church elders, etc.), and elder people are often venerated for their knowledge and wisdom.

There is no set-in-stone way of knowing when someone becomes a senior citizen. Similarly, there is no general consensus about what the different terminology means or implies. So what does “old” really mean? Ultimately, each of us must decide for ourselves.

What Are The Major Challenges Facing The Elderly?

Often it is not until we start to age ourselves or we see a loved one struggling that we sit up and take notice, but as a society, we can do more to make life easier for our aging population. This article outlines the biggest challenges that elderly people face today and how we can support them and enable them to age with dignity.

1. Ageism and a lost sense of purpose

There are lots of outdated stereotypes about elderly people, which can lead to isolation and marginalization in a lot of communities. By coming up with innovative ways to involve older people in the community through social events, we can not only help them to maintain a sense of identity and self-esteem but also tap into the wealth of knowledge and experience they have, which is so vital for the development of society.

2. Financial insecurity

While we are living longer, unfortunately, the world of employment and retirement has not evolved at the same pace. Many elderly people are able and more than willing to work past the standard retirement age, but the opportunities are not there.

In addition, managing day-to-day finances and planning for later life can be challenging for older generations as much is now done online or remotely. This can also leave them more vulnerable to fraud and scams.

3. Difficulty with everyday tasks and mobility

A person’s mobility and dexterity will naturally decline as they age, which makes completing everyday tasks more difficult. This can gradually cause people to care for themselves and prevents them from being social, pursuing interests, or taking part in activities they enjoy.

More support is needed to enable elderly people not only to live independently through products and programs which focus on safety, balance, fitness, and mobility but also to ensure they can continue to thrive as an individual.

4. Finding the right care provision

When complete independence is no longer practical, many elderly people require additional care. Sometimes this care can be provided by family members, but this can place a lot of strain on the caregiver in terms of balancing this with work and other family responsibilities. These caregivers need to be given the training, resources, and emotional support necessary to help them deliver the best care for their loved ones and themselves.

In some cases, it is more appropriate for a professional caregiver to be employed on a regular basis, e.g., when there are complex medical conditions and/or physical disabilities. With a comprehensive eldercare service, the elderly person is able to remain in their own home.

5. Access to healthcare services

Healthcare can be complicated and disjointed for elderly people, especially for those struggling with long term conditions. The care requires lots of different medical professionals and clinics to coordinate delivery of medication and other types of care.

6. End of life preparations

We all need to prepare for the inevitable, but death is often a difficult topic for people to discuss or make plans for. Elderly individuals and their families need support when considering the end-of-life options available, financial implications, and how to ensure that the individual’s wishes are respected.

What Are The Disadvantages of Digital Banking?

Online banking via personal computers and mobile apps on cellphones has made banking more convenient and accessible 24 hours a day. However, there are some downsides to online banking. While these disadvantages may not keep you from using online services, keep these concerns in mind to avoid potential issues down the road.

1. Technology and Service Interruptions

Anytime we use computers or internet service, we are at the mercy of the system’s stability and efficiency. Your ability to access accounts online will naturally be affected if your internet service is running slowly or completely out for a period of time.

Similarly, if the bank’s servers go down or are temporarily unavailable due to scheduled site maintenance, you won’t be able to gain online or mobile access to your banking information.

2. Security and Identity Theft Concerns

In general, online banking sites and mobile apps are designed to be secure and banks are continually putting updated security protocols in place. However, no system is completely foolproof and accounts can be hacked, resulting in identity theft via stolen login credentials.

So while you can use mobile or online banking with general confidence, be careful to avoid using networks that are not secure and be careful to change passwords and protect your login information.

3. Limitations on Deposits

Daily or monthly mobile deposit limitations may make it difficult for individuals, but especially businesses to make large deposits online. Once you have reached your designated limit, you’ll need to trek to a branch to deposit money.

Also, not all types of checks are easily read by computer scanning software. For example, business checks that are handwritten and have a black line on the reverse side to make a carbon record in an account register may be kicked out of the online deposit system, requiring an on-site deposit.

4. Convenient but Not Always Faster

While it may take very little time to deposit a check via a bank’s mobile app, you still need to wait for access to your money. Online banking provides convenience in terms of the amount of time saved in travel or waiting in line at a branch location, but all deposits are reviewed and funds are released for access according to bank policy, which may take up to three business days depending on the amount deposited.

5. Lack of Personal Banker Relationship

For the most part you may be able to handle your general banking needs by yourself. Yet when problems arise if you don’t have a personal relationship with a banker, it might be more difficult to get your issues resolved.

While online banking sites have customer service departments, you often need to work your way through a phone tree and wait on hold before speaking with someone who has no knowledge of your needs or banking history. In contrast, a local banker is motivated to serve their customers and strengthen their personal relationships.

6. A Limited Scope of Services

Although you can do quite a bit with an online bank account, such as make deposits, check balances and pay bills, there are limitations to the kinds of services you can access.

You may be able to make an initial application for opening a new account or applying for a loan or mortgage, but in most cases you will need to visit a branch to sign forms and show identity documentation. Similarly, even though you can transfer money to a checking account or debit card in order to make purchases, if you need cash, you’ll have to visit a branch office or a nearby ATM.

7. Potential to Overspend

The ability to check account balances in the spur of the moment could potentially cause some people to overspend the limits of their checking accounts. Without a careful look at your checkbook or record of uncleared debit transactions, the account balance may not accurately reflect the true amount you have available. Overdrafts and fees might occur if you don’t keep close tabs on all your transactions.

What Are The Problems With Online Banking?

Here are some of the top issues and challenges in the online banking sector that marketers need to be aware of:

1. Traditional Banking Habits

Despite the benefits of online banking, 49 percent of American adults do not participate in it at all. This happens mainly because traditional banking is what many people are used to and it can take time for them to break habits. So, online banking marketers should focus on ways to convince traditional banking users to start using online banking services.

These marketing efforts should specifically highlight the numerous benefits of online banking. They need to show people how online banking can solve traditional banking problems more efficiently(having to actually go to bank branches, higher fees, etc.)

2. Security

Security is one of the most significant challenges for online banking marketers. This is because, in the past, if a robber was going to steal a person’s bank savings, he or she would have to break into the bank vault, and make a daring escape with the money. This was an extremely difficult prospect and involved a lot of danger and risk.

With online banking, cyber criminals simply need to ascertain certain personal information to break into a person’s account and steal their money. It can be done anonymously, and involves significantly less physical danger than in the past.

In fact, in the U.K. in 2015, roughly 130 million British pounds were stolen from online bank accounts through fraud. So, security is still a major issue for online banks and their customers.

Marketing professionals in the online banking sector need to focus on demonstrating and explaining the security of online banks to overcome this challenge.

3. Transaction Difficulty

It can be significantly more difficult and time consuming to deposit or withdraw money from an online bank. Not only do online banks often have fewer ATM’s than their traditional counterparts, but it also can simply take longer amounts of time for deposits to be processed and put into a bank account.

For example, it takes roughly 3-5 days for deposits to show up in accounts for PayPal, one of the largest online banks. This is an issue that online banking marketers will most likely struggle with, until online banks speed up their transaction times.

4. Technical Issues

Because online banks rely so heavily on their online platforms, this means that they can generate substantial losses if their systems crash or if there are bugs in their code. A single technical issue that causes a bank to be down for a day could cost the bank millions in losses.

It can also wreak havoc for the bank customers who may not be able to make payments or conduct transactions during the time that the site is down. 54 percent of consumers now use a mobile banking app. So, it is key not just for banks to have their online platforms running smoothly, but also, their mobile apps.

A loss of funds or data due to a crash is something that can be very worrisome for bank customers. So, marketers should prioritize alleviating this worry by explaining how account funds will not be lost if technical issues occur.

5. Small Budgets

Many startups have to operate on shoestring marketing budgets before they grow to a larger size. Obviously this can be a major challenge. If your marketing budget is small, then you need to focus on the priority expenses.

The inbound marketing strategies of creating a search engine optimized website, making accounts for all of the biggest social media networks (Facebook, LinkedIn, Twitter, etc) and starting a blog should all be prioritized.

On your website, you should also have an option to allow visitors to join your mailing list. Furthermore, a good PPC campaign can be a very good investment for your company. In fact, businesses make an average of $3 on every $1.60 they spend on Adwords.

Online banking is one of the most significant developments for the banking industry in its long history. However, despite the many benefits that online banking provides to customers, there are also a number of major concerns and challenges for marketers in the online banking sector.

Traditional banking habits, security, technical issues, transaction difficulties, and small marketing budgets are all major challenges that online banking marketers will have to reconcile if they are to succeed in this field. However, demand for this industry continues to be very strong. So it is likely that online banks will only grow more advanced and successful as they strive to resolve their marketing challenges.

What Are The Advantages and Disadvantages of Virtual Banking?

You no longer need to visit the bank in person to deposit or withdraw money, request an account statement, or stop a payment. You can do all of these tasks, and many more, using the online services offered by the banks.

You can also keep track of your account transactions and balance at all times. You no longer need to get passbooks updated to know your total account balance.

While online banking has many positives, there are also a few cons. Let’s take a look at the advantages and disadvantages of online banking.

Advantages	Disadvantages
An online account is simple to open and easy to operate.	Understanding the usage of internet banking might be difficult at the first. That said, there are some sites which offer a demo on how to access online accounts (not all banks offer this). So, a person who is new to technology might face some difficulty.
It’s convenient, because you can easily pay your bills and transfer your funds between accounts from nearly anywhere in the world.	You cannot have access to online banking if you don’t have an internet connection; thus, without the availability of internet access, it may not be useful.
You do not have to stand in a queue to pay off your bills. Also you do not have to keep receipts of all of your bills, as you can now easily view your transactions.	Security of transactions is a big issue. Your account information might get hacked by unauthorized people over the internet.
It is available all the time. You can perform your tasks from anywhere and at any time, even at night or on holidays when the bank is closed. The only thing you need to have is an active internet connection.	Password security is a must. After receiving your password, change it and memorize it. Otherwise, your account may be misused.
It is fast and efficient. Funds get transferred from one account to the other very fast. You can also manage several accounts easily through internet banking.	Your banking information may be spread out on several devices, making it more at risk.
You can keep an eye on your transactions and account balance all the time.	If the bank’s server is down, then you cannot access your accounts.
You can get to know about any fraudulent activity or threat to your account before it can pose any severe damage.	If the bank’s server is down, due to the loss of net connectivity or a slow connection, then it might be hard to know if your transaction went through.
It’s a great medium for the banks to endorse their products and services.	You might get overly marketed too and become annoyed by notifications. That said, these can easily be turned off.
More online services include loans and investment options.	You might become annoyed by constant emails and updates.

Online Banking For Elderly

While old age brings with it wisdom from the experiences of life, it can pose difficulties in certain areas such as Financial Management. Managing lifetime earnings is fraught with challenges for the elderly. A decline in cognitive ability, general health, hearing, vision, or mobility impedes the ability of the elderly from performing even basic banking transactions.

Older people are often not digitally savvy and therefore may not be adept at using digital banking channels which need them to remember passwords, navigate through websites or understand call center menus.

There is a high dependence on children, relatives or caretakers to withdraw cash, check account balance or apply for things like cheque books on their behalf. This makes the elderly vulnerable to financial fraud.

Studies show that the ability to manage one’s personal finances deteriorates with age and hence old people are at risk of messing up their finances or making bad investment decisions.

It is therefore imperative to offer the elderly appropriate banking experiences that help them manage their money easily and safely.

Studies show the elderly prefer visiting the branch and interacting with bank personnel to using their mobiles or laptops for banking transactions.
Banks can

• Provide exclusive counters for senior citizens in their branches.
• Train the staff / tellers to listen to and understand the needs of old people, identify instances of potential fraud/financial abuse, and respond appropriately.
• Provide facilities such as picking up cash and instruments against receipt, delivering cash withdrawn from accounts, delivering demand drafts, or submitting Know Your Customer (KYC) documents and Life Certificates at the customers’ doorstep.

Simplified product design

• Design products with a transparent low fee structure, and benefits such as zero minimum balance, higher interest rates on deposits, credit and debit cards with zero maintenance fee, free bill pay services etc. These will be preferred to premium accounts with complex features and fee structures.
• Provide easy access to simple financial products and services that can help older adults with low or moderate income to effectively manage a limited budget.

Customized channel offerings

• Provide customized digital channel offerings such as easier navigation, large and bright fonts, simple text, and easy access and authentication.
• Enable older people to structure their accounts online such that caretakers or relatives are allowed only limited privileges (for example, may only view).

Old age-friendly marketing materials

• Development of old age-friendly materials such as marketing collateral printed in a large font.

Miscellaneous

• Collect and analyze data such as spending patterns, products used, retirement savings, loans outstanding etc. and use it for rolling out customized products and services for their elderly customers.
• Chart out financial protection guidelines that deal with the various aspects of financial health of such customers.
• Provide retirement and financial management plans helping the elderly customers to plan their future cash flows as well as meet any unforeseen medical expenses.
• Conduct financial seminars to create awareness of products and services relevant to that group and help them make informed financial decisions.
• Design senior-friendly bank branches with adequate seating, non-slippery floors, restroom access, railings for support etc.

Online Banking For Senior Citizens

To those of us who didn’t grow up with the Internet, online banking can seem dubious. You don’t see money changing hands; it disappears and reappears from your computer screen. However, in many ways online banking makes sense for aging brains that occasionally forget to pay bills or fail to pay them on time.

With online banking, you can check to see if you paid a bill, or you can set up automatic bill pay for regular accounts, such as credit cards or car payments. If you’re not comfortable having the bank automatically take money from your account, many banks will send you an email and/or text alert to remind you of the due date, so you can pay bills yourself.

Such alerts will also warn you if your account balance is low. In addition, you can monitor your account for fraud, especially if you’re suspicious about recent activity. Online bank statements immediately show transactions, including those for an Xbox that you didn’t order. You can also transfer funds between accounts online. Conveniently, there’s no need to keep track of your finances in a check register and balance your checkbook every month.

On your online statement, you can see your balance up to the last transaction shown (even written checks). In fact, if you need to go back several years (for tax purposes, for example, or to find the date for that last mortgage check), you can pull up the information from your online account. You can even deposit checks online by using a scanner or fax machine to scan the check and send the image to your bank.

Or, use the camera on your smartphone to take a picture of the check and deposit it electronically. In fact, you can do most banking activities on a smartphone, so you can use the time while waiting in a doctor’s office to take care of banking business. Many institutions offer free mobile phone apps you can download and use to connect directly to your bank.

Those with older parents who are no longer comfortable with their financial abilities can use online banking to view their parents’ online statements and check to make sure their finances are in order. Best of all, with online banking, you can save yourself a trip to the bank and avoid wear and tear on your car.

Is Online Banking Safe?

Because hackers could cause significant financial damage if they broke through a bank’s security system, institutions that provide online banking use the highest security system allowed by U.S. law. Still, there are actions you can take to help keep your money safe.

• When selecting a bank, especially one that has no physical offices, watch out for copycat websites that deliberately use a name or Web address similar to, but not the same as, the real financial institution. The intent is to lure you into clicking onto their website and giving your personal information, such as your account number and password. Always check to see that you have typed the correct Web address for your bank before conducting a transaction.
• Avoid sending sensitive information, such as account numbers, through an unsecured email. Encryption is the process of scrambling private information to prevent unauthorized access. To show that your transmission is encrypted, some browsers display a small icon on your screen that looks like a “lock” or a “key” whenever you conduct secure transactions online.
• Use a complex password for your online banking account. Your password should be unique to you and should be changed regularly. Do not use birthdates or other numbers or words that may be easy for others to guess.
• Regularly update general security, such as virus protection, over your personal computer. Contact your hardware and software suppliers or Internet service provider to ensure you have the latest in security updates.
• Check with your bank to see if its online banking site supports two-factor authentication, which allows identification only by using two different components, such as your bank card and PIN at a cash machine. With some banks, you can register your smartphone, which can be vulnerable to theft, for authentication.
• Avoid public networks when making a transaction. Even though online banking sites use strong encryption technology, using wireless access at your favorite café, for example, can potentially leave you vulnerable to hackers.
• Check your bank statements as often as possible to make sure you haven’t been hacked.

Age-Friendly Banking

Age-friendly banking is defined by Age UK as “banking products, services and facilities that remain accessible and easy-to-use as people age“.

The coronavirus outbreak has, unsurprisingly, radically changed the way that consumers are interacting with their banks. With many bank branches around the world closing their doors altogether (either permanently or on a temporary basis) or operating during limited hours with reduced staff numbers, customers are being actively encouraged to utilise digital banking channels. Many of these customers will be doing so for the first time.

There are three main elements that can prevent the take-up of online services and lead to digital exclusion: a lack of the appropriate hardware, a lack of connectivity or data, and a lack of skills and confidence in being able to navigate the online world. With that in mind, many high street banks have recently introduced or expanded the number of facilities to ensure the over 65s are still able to access banking services.

Lloyds has partnered with We Are Digital to provide a specialist phone line that is helping to guide and train up to 20,000 vulnerable customers, allowing them to stay connected to their finances. The partnership will also be providing up to 2,000 tablets to over 70s who don’t currently have a device to access the internet.

RBS has set up dedicated phone lines for NHS workers and the elderly across its NatWest, RBS and Ulster Bank brands. They have also created ‘Digital Lessons’, to help older customers learn how to carry out day-to-day banking activities online.

Barclays has introduced a number of measures including contacting customers it has identified as being vulnerable to ensure they can access their accounts, providing ‘virtual tea and teach’ sessions to help older people improve their confidence banking online, and allowing a “trusted third-party” to access an account on a one-off, temporary or permanent basis.

By utilising the technology at their disposal, banks are now able to replicate the face to face interactions that the elderly value, remotely.

They can enable their customers to see and compare product information, sign and exchange documentation, and verify their identity online or over the phone, as though they are in a branch. Co-browsing functionality can be used at the point of need to guide users through their digital banking journeys.

With many banks having to upscale their digital capabilities in a short space of time, they must now ensure that their online channels also retain the benefits of a personal, in-branch experience if they are to truly make age-friendly banking the next normal.

What Are The Challenges of Mobile Banking?

A more open network and different ways of moving money open new opportunities for online banking fraud. Mobile banking fraud prevention is an area that has many challenges, but one where certain technologies, including continuous authentication, have the potential to provide a solution.

As mobile device use for banking increases, it creates new opportunities for fraudsters, giving malicious actors new inroads into our bank accounts and personal data. A McAfee survey of mobile threats found they are “steadily growing” with banking Trojans that can steal login credentials, increasing by 40%.

One such Trojan is the infamous ‘Faketoken’ which overlays a fake UI and can even steal SMS codes sent to users for second-factor authentication.

Read Also: What is Relationship Banking and Why is it Important?

Compounding the problem of mobile banking malware is user behavior. An ACI report found that more than half of consumers show risky behavior and do not understand the risks of fraud. In a report by Accenture on mobile banking, they found that a staggering 43% of users do not even use a passcode to manage access to their device. Why is this? The answer lies in friction.

A survey found that 74% of organizations who implement second-factor authentication (2FA) had complaints from their users about it. As a result of increased friction, users often avoid two-factor authentication even when conducting sensitive transactions on mobile devices. According to studies, consumers generally use static passwords instead.

Mobile devices have a number of security issues that have either been inherited from general Internet security known issues or have become inherent in the platform.

Finally

Financial service companies must continue to adapt to society’s changes and support the needs of this new era. The aging population not only brings new challenges for financial institutions, but also new opportunities. They will need to keep working together with citizens of all ages in order to develop a more sustainable, equal society.

With increasing life expectancy, banks and financial institutions have the opportunity as well as the responsibility to serve a growing elderly population (beyond 65 – 70 years) with the right products and services. Banks need to examine the holistic financial needs of their senior customers in the light of a changing retirement structure and provide a framework that ensures financial inclusion and access.

Ease of access to banking services, simply designed products at transparent costs, and the fulfillment of typical and atypical needs will make banks old age-friendly, and establish trust and the much needed financial security among senior customers.