Older Australians adapt to banking digitisation

John Kavanagh

Eight out of ten older Australians are using internet banking services but a much smaller number use mobile banking, new research has found.

A report drawing on the 2021 ANZ Financial Wellbeing Survey and research by the University of South Australia found that 81 per cent of people over 65 used internet banking in the past 12 months, while 26 per cent used a mobile banking app.

The report, Exploring Digital Capability in Older Australians, also shows that 45 per cent of people over 65 used a branch in the past 12 months, compared with 33 per cent of people under 65.

Older people prefer human interaction when doing their banking but have recognised the shift to online services and are adapting, the report concludes.

The UniSA researchers found that access to digital banking services is an issue for a significant number of older people, who have age-related impairments such as poor vision and loss of fine motor control.

The report recommended that banks “engage with people with lived experience” when designing new technology-based services.

It also recommended that banks consider offering education programs covering digital banking skills and online security.

Apart from those with impairments, interviewees of all ages found online banking sites easy to use and expressed a high level of trust in online banking services. 

People who used branches exclusively did so because of security concerns and a lack of familiarity with computers and the internet.

Use of telephone banking services was low for both older and younger people: only 7 per cent of those over 65 and 6 per cent of those under 65 used automated services in the past 12 months; and 11 per cent and 5 per cent respectively used a telephone service involving bank staff.

Fifty-nine per cent of younger people and 65 per cent of older people said they used an ATM in the past 12 months.

Most people said they understood how to take online security measures and most were confident they could recognise suspicious emails and messages.

Older people were no more likely to have lost money to a scammer than the general population, at 14 per cent.