With rapid technological advancements, banking services are also moving exponentially towards digitalisation, in line with the Hong Kong Monetary Authority’s efforts in promoting the development and application of financial technology (Fintech) in the industry in recent years, so as to provide more efficient and convenient banking services to the public. According to the Census and Statistics Department, even though over 80% of seniors aged 65 or above in Hong Kong had used the Internet, only 20% of them had used it for banking services, bill payments, or financial transactions. In view of this, the Consumer Council conducted a survey to examine the habits of and problems faced by the elderly while using banking services. It was found that some attach great importance to a sense of security, and feel more solid using passbooks and traditional counter services, yet constant long queues for counter services is a major challenge to the physical strength of senior citizens. Moreover, not all seniors can readily navigate lengthy directories in telephone banking services or the copious passwords and procedural demands of digital banking services.
The Council also examined whether the services and measures provided by 10 banks were “age-friendly” and found much room for improvement. Although all these banks still provided passbooks for senior citizens, if a passbook is lost, the elderly customer may have to open a new account or change their account number. Priority counters for the elderly and ticketing systems to shorten waiting times were also only available at limited branches. The Council urges the banking sector to take into account the needs of the elderly and other disadvantaged groups while promoting digitalisation, including the continuation of passbook services for the elderly and provision of paper statements in extra-large print; deploying ticketing systems in more branches to triage customers so the elderly can wait for a shorter time; taking into consideration security concerns of the elderly when selecting locations for automatic teller machines (ATMs); setting up dedicated telephone hotlines for the elderly and shortening wait time in accessing customer service operators, etc., enabling all elderly to continue to enjoy convenient and diversified banking services, so as to safeguard their fundamental consumer rights.
The Council invited 17 “Senior Educators” aged between 65 and 82 for telephone interviews about their daily banking habits, as well as their own and friends’ experiences and demands in banking services. Their observations and comments were categorised into 3 groups, namely the “Traditional Group” which still relies heavily on traditional branch services, the “Learning Digital Banking Group”, and the “Digital Savvy Group” which possesses basic understanding of fintech and is more familiar with digital banking. At the same time, the Council examined the age-friendliness of basic services, banking channels, and other related measures offered by 10 banks with more physical branches in Hong Kong.
Continuation of Passbook Services to Let Elderly People Feel More Secure
Checking and printing out transactions on bank passbooks regularly used to be common practices for many people, and even though these are gradually phased out, some senior citizens still find a passbook more substantial and secure. All 10 surveyed banks still provided passbook services to the elderly, but 1 only provided it to existing customers while new customers could only choose to receive monthly statements. Comparing Hong Kong Dollar Savings Accounts and Integrated Accounts, with the lowest account opening requirements, 7 of the remaining 9 banks only provided passbook service to elderly people with a Hong Kong Dollar Savings Account, while 2 banks would issue passbooks to elderly people with either type of account. Elderly people should note that if they lose their passbooks, 1 bank would not provide replacement service and they would have to open a new account; 3 banks would issue free replacement passbooks to elderly people, but 1 of them would change the account number; and the remaining 6 banks would charge a replacement fee of $50 or $100. Senior customers could still apply for paper statements for free even if not issued a passbook. However, none of the 10 banks provided monthly statements in extra-large print, thus elderly people with poorer eyesight may find it difficult to read the statements. The Council recommends the industry to follow overseas practices and provide senior customers with monthly statements in extra-large print, and to continue providing passbook services to the elderly to put their minds at ease.
Increase Priority Counters for the Elderly and Triage with Ticketing Systems to Shorten Queuing Time
Apart from passbook service, many elderly people still prefer branch counter services and long queues are sometimes inevitable. 9 banks had gradually introduced ticketing systems to triage customers so elderly people can reduce wait time. Some branches of 5 banks had even set up priority counters for the elderly. The Council recommends that banks should set up more priority counters with sufficient seating for the elderly to take a rest, starting in districts with larger senior populations and gradually extending this service to all branches. On the other hand, changes in bank branch networks significantly impact the elderly, and the disparate names of self-service banking centres (i.e. banking centres that do not provide traditional counter services), with some without diction like “self-service”, could be confusing to the elderly. The Council recommends banks to clearly define the different types of bank facilities so senior customers can understand the differences at a glance, and to consider demographic structures when reviewing branch distribution to facilitate continued use of counter services by the elderly.
ATM Location Should Consider Security Concerns of the Elderly
Sharper seniors may be able to navigate the use of ATMs or telephone banking services themselves. However, some elderly respondents said that using ATMs in public areas might be stressful, which included the need to be mindful of passwords along with avoiding prying eyes; some also indicated that the screens of outdoor ATMs may be reflective due to lighting problems, causing difficulty in reading instructions. For the convenience of elderly customers, 9 banks offered simplified and basic ATM services, such as balance enquiry, cash withdrawal, and PIN (personal identification number) change, along with ATM screens displaying a simplified interface with graphic icons and larger text. Those in need can apply for the relevant services from the banks. Interviewed seniors also felt that using ATMs inside branches would give them greater peace of mind, as it would be easier to get help in case of unforeseen circumstances. The distribution of ATMs is very important to seniors living in remote areas, and banks should be mindful of security concerns of the elderly when considering locations of ATMs.
Set Up Elderly Hotline
Streamline Pre-recorded Directories in Telephone Banking
Telephone banking services should theoretically provide greater convenience for the elderly. However, some senior interviewees opined that pre-recorded directories were too lengthy, and it often took a long time to gain access to the right service. Therefore, Council staff trialled 8 hotlines for general account enquiries or account opening details. Out of the 48 trials conducted, 25% (12 times) took over 4 minutes before reaching a customer service agent, with the longest wait exceeding 15 minutes. For the convenience of customers and to streamline the process, 1 bank provided speech recognition function whereby customers can describe the reason for calling with simple phrases, and the system will employ smart technology and transfer the call directly to relevant services. Furthermore, 2 banks provided a simplified version of mobile banking application with the function to call a customer service agent, which allowed senior consumers to skip the pre-recorded directory and contact customer service agents directly. The Council recommends banks to set up dedicated hotlines for the elderly, provide simpler phone banking directories, shorten time needed to patch through to call handlers, and consider introducing technologies such as caller line identification systems, voice authentication, and speech recognition systems to facilitate the use of phone banking services by the elderly.
Provide Education and Support
Empower the Elderly to Choose Among Various Ways to Bank
For elderly people with lapsing memories, it is a great challenge to memorise different passwords, and some may choose to write them down which increases the risk of password leaks. As for the increasingly popular biometric log-in, some seniors also had reservations about it. The survey found that many banks had introduced various authentication methods, such as app authentication, voice authentication, SMS authentication, mobile security token, etc., so elderly customers could choose according to their ability and preference. However, some elderly people may not be able to fully master new technologies on their own. The Council suggests banks to set up counters on digital learning to help and guide seniors and people in need.
Digitalisation of banking services has become the trend. To ensure people from different walks of life can enjoy equitable access to basic banking services, the following considerations should be taken:
- As the banking sector digitalises, the service standard of traditional banking channels should be reasonably maintained to take good care of the elderly and other vulnerable groups on their banking needs;
- Currently technologies make it possible for banks to incorporate new functions within their existing interface, helping elderly people to adapt to changes more easily during the implementation process. It is also important to provide them with timely, practical, and easy-to-understand education and fraud prevention knowledge;
- Existing support channels should be reviewed regularly, so that seniors can easily seek assistance when they encounter problems regardless of the banking channels chosen, thereby boosting their confidence in banking services.
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