Over 55s flock online during coronavirus pandemic but miss out on digital banking opportunity

Coronavirus has supercharged the speed of digital adoption, with three in five (59%) Brits using more digital services than they did before the pandemic. The shift in habits has been exemplified by the older generation, with one in five (17%) over 55s signing up to at least three new online entertainment, socialising or shopping services since the pandemic began.

While some Brits’ downtime has taken a nose dive, the over 55s’ approach to entertainment and speaking with friends and family has been transformed since the pandemic began, with at least daily use of online TV streaming platforms, like Netflix, up 39% since the outbreak and a 81% increase in at least weekly use of video conferencing facilities, such as Whatsapp Video.

It’s not just entertainment, over 55s have been sussing out a whole range of new online services, with a 67% increase in numbers using online to do their weekly groceries shopping.

Over 55s put their increased online usage down to avoiding having to venture out (44%), their own personal safety (13%) and saving time (12%). One in five are following the lead of their friends and family.

But despite the benefits of doing things online, there is an anomaly. The numbers of over 55s who continue to avoid using digital banking has remained the same since the pandemic, with almost one in five (16%) choosing not to use their bank’s digital services to manage their money.

This trend is reinforced by Santander’s own data.  While the bank has seen over 250 million logins on online and mobile banking since the pandemic began, over 55s have initially been slower than other age groups in trying digital banking in the same period, with a 40% difference in the uptake of digital services between 35-54-year olds and the over 55s in the first two weeks after the pandemic was declared.  What’s more, although almost a third (30%) of customers over the age of 55 use online banking or the mobile app, only 0.5% have taken up banking digitally since the beginning of the pandemic.

Instead, the bank’s online chat service, which allows customers to carry out a range of account specific transactions, such as balance enquiries and requesting a replacement card, has seen a significant increase in usage since the pandemic began, with over 55s accounting for one in four (27%) of all users in March alone. The chat service is the first in the banking industry to introduce a level of authentication that enables customers to carry out complex transactions from the public website.

Chris Ainsley, Head of Fraud Strategy, Santander UK said: “It’s great to see that over 55s are trying out new digital services to help them overcome some of the challenges created by coronavirus and their use of our online chat service is really welcome. For those who feel confident and comfortable after experimenting with other online services, then now is a perfect time to put digital banking to the test.   

“It’s secure, saves time and is a convenient way to manage your day-to-day finances, particularly during the pandemic. For those who don’t have access to the internet or who simply aren’t comfortable managing their money online, then we’re always happy to help over our phone lines or once it’s safe to do so again, in person in branch.” 

Among over 55s who don’t bank online:

• One in two (52%) already know they have the right credentials in place to register for digital banking, compared to only 15% of under 35s;
• 64% blame concerns over security, compared to just 42% of under 35s, for not using online or mobile banking; and
• 64% admit to simply never having got around to using the service.

Yet interestingly, whereas 35-54-year olds are worried about not using digital banking correctly (50%), fewer over 55s share these concerns (44%).

Santander is helping customers get online with a set of simple step-by-step videos for online banking and an online demo and guides for mobile banking.  It has also launched a marketing campaign with advice around managing your money using digital banking, and has contacted customers over SMS, and encouraged people via its contact centres and website to use its online chat or digital banking services where possible.

Chris’ Top Tips for Securely Managing your Money using Digital Banking

Sharing isn’t always caring: Keep your login details safe at all times. Avoid writing them down and don’t share them with anyone.

Keep it a secret: Never share your One Time Passcode (OTP) with anyone, not even Santander staff.

Leave them out in the cold: Received a call you weren’t expecting? Never let a cold caller talk you into giving them access to your device or downloading software.

No shortcuts: Don’t be lulled into entering your online banking details after clicking a link in an email or text message. If you’re logging in to online banking, type the full address into your web browser.

Stay on top of it all: Install the latest security updates to your system software as they become available. You can also download Trusteer Rapport, which is free and helps keep your details safe and secure.

Over and out: Using public WiFi? Make sure you fully log out of online and sign out of the mobile app once you’re done.