Sharp rise in internet banking for the over 55s
1 commentInternet banking has proved phenomenally popular since its introduction. What have been most surprising, however, are the benefits to the over 55s. Indeed, it has been revealed that over 3.6 billion people over the age of 55 have started online banking since 2006.
Despite the conventional view that the elderly tend to be the one of the most technophobic groups, they are now becoming more confident about using the internet. In fact, recent studies have shown that this age group now makes up almost 30% of all net users. It is clear that internet banking is convenient for them, especially for those with limited mobility or more free time.
The results come from the The Association of Payment Clearing Services (Apacs), which has said that between the years 2001 and 2006, the number of people in this age group who used internet banking shot up dramatically by 350% - much more than the 175% total rise in adults using Internet banking. Though young people still generally dominate the internet banking scene, the majority of new internet bankers are the elderly due to the ease in which they can operate their accounts.
As Sarah Quinn from Apacs said: "As a group they have come to embrace the ease and efficiency that online banking offers." Similarly, Nick Staib, an e-marketing manager at HSBC, has said that elderly people originally only started using the internet to contact family and send email, but now they are growing more confident with the easy systems offered by internet banking services.
Apacs has also noted that the increase in internet banking has had adverse effects on telephone banking. Even though around 16 million people still use the phone to manage some of their banking, there has been a drop of about one million since online banking was introduced. It is easy to see why: internet banking is much more convenient, costs less and displays account information in a way that is practically impossible to get using a phone.
It must be noted, however, that online banking also carries a much higher risk of fraud. People who are new to it must make sure their accounts are secure, for example by never storing passwords on the computer and learning how to spot scam emails. It has been shown that, although older people are a lot more wary when using the internet and likely to read more information before carrying out any action, they are less technologically aware than younger users and are therefore at a higher risk.
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