Is the Digital Banking boom neglecting older generations?

By Gloria Methri

• New research finds that digital-only banking risk marginalising older customers.
• The report calls for physical branches to be retained to serve the ageing population better.
• The increasing digitalisation of everyday services leaves older people feeling abandoned and lonely.

The trend of financial institutions shifting to digital-only platforms is leaving a growing number of older people behind, new research shows. The study, part of The New Ageing Index 2024 by Home Instead, highlights how the increasing digitalisation of everyday life is marginalising the UK’s elderly, leading to widespread calls for action.

A staggering 88% of those aged 66 and older believe banks should be mandated to retain more physical branches. For many in this age group, in-person banking remains their only confident option, making physical branches an essential lifeline.

Additionally, 78% of that same group believe that the increasing digitalisation of society marginalises older people, who often face barriers to accessing, understanding, and using technology.

For many older people, in-person banking remains the only option they are confident with, underscoring the critical need for physical bank branches to avoid leaving this vulnerable group isolated and unsupported.

The study found that the consequences of the digital divide extend beyond access to banking. Nearly 70% of respondents reported that the rise of digital services is intensifying feelings of loneliness and isolation among older people. To bridge this divide, urgent action is needed to make technology more accessible for older adults. This includes programs and resources to help them understand, adopt, and effectively use digital tools.

For Martin Jones, CEO of Home Instead, this is a wake-up call. “As our population ages, addressing the social disparities created by digital culture is of great urgency,” said Jones. “A balanced system that combines physical banking services with efforts to improve digital inclusion could ensure older people aren’t left behind.”

On a more positive note, the research also shows that technology has the potential to enhance the lives of older people, particularly in areas like home care and health monitoring. These could offer greater independence and comfort for those who choose to age at home. Almost two-thirds of those surveyed (65%) believe this to be the case.

Over three-quarters (76%) of respondents believe that tech companies must develop products that are easier for older people to use. While there is a strong willingness to learn—74% of respondents believe in lifelong learning to close the digital gap—accessible programs and support are urgently needed.

The findings underscore a paradox: while technology has the potential to enrich lives, its rapid adoption without inclusivity risks alienating vulnerable groups. To address this, the report advocates for collaborative solutions, combining physical services with digital education to ensure older generations can confidently navigate a digital-first world.

As financial institutions and tech companies chart their futures, the message from older Britons is clear: don’t close the door on us. Instead, find ways to bring everyone into the fold.