In their latest blog post, NYPAY (New York's leading forum for innovators and leaders in payments and mobile commerce) highlights the "digital divide" that persists despite the pandemic-driven shift to online banking services for everyone. In particular, the writers note that "Despite Pandemic, Older Americans Still Daunted by Digital Banking."
The article refers to a study by Phase 5 released in September 2020, entitled, "Impact of COVID-19 on Consumer Financial Services in the US", and draws on a comparison by age group of digital banking activities adopted since the pandemic began. In many cases, the difference in adoption rate is 2 to 3 times less for those aged 55+ versus everyone else. One of the most notable data points shows that nearly half of those aged 55+ do not use a mobile app versus just 14% of younger consumers.
So what does this mean in a world where "staying home" and "social distancing" have forced a change in service options? The article recommends that financial institutions avoid a one-size-fits-all digital solution for their customers, recognizing that an important group of customers may warrant an alternative that meets their needs and their comfort levels.
For the complete article, click here. For Phase 5's topline report, click here.
