WILL SENIORS TAKE TO ELECTRONIC BANKING?

The Headache: Many bankers considering expansion of electronic services have been focusing on Generation Y and other "digital natives." But many older customers—core customers for community banks, especially—are surprising bankers with their interest in online and mobile services.

Our Question: What interest level is your bank seeing in internet and mobile banking from seniors? What are you doing about it? 

Come see what other bankers think, and add your own views

 

How can banks help senior citizens take advantage of internet and mobile banking? 

http://www.ababj.com/images/stories/33111pta_daughter_mom.jpgWhile the spotlight has often been on so-called "digital natives," many older customers are surprising bankers with their interest in online and mobile services. What interest level are you seeing and how are you addressing it?
 
Acceptance—or not—of electronic banking services by older bank customers isn't just a matter of demographic differences. Banks with finite resources have to pick and choose where to invest their dollars. Money put into one channel won't be there to spend on another channel. Many believe senior citizens prefer doing their banking business in branches, and frequently they are the ones with higher deposits and often with more profitable business borrowing relationships, as well.

But think about who you see carrying iPhones, Blackberries, and other banking-capable mobile devices.

Tell us what your bank is seeing and hearing, and what you are doing in response.

 
 Let's hear your views and ideas below! (Editorial Note: Contributions to Pass the Aspirin may also appear in our print edition. While we will ask for your e-mail address, this is only as an aid to verifying identity and will not be used for any marketing or promotional purpose. The e-mail address will not be published.)  
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Greg Sisk, retail bank manager and senior vice-president, Greer State Bank, $444.3 million-assets, Greer, S.C said:

I am convinced that banks don?t do enough to reach this group for online banking and mobile services. We simply figure the older customers just want to keep money in a CD and a Senior Checking account, without asking them what they want. One of our most popular checking accounts is called eBonus. This is a checking account that pays a high rate of interest to the customer?if they agree to receive their statement via the internet; use their debit card at least ten times a month; and have at least one automatic debit or credit.
The target audience is the upwardly mobile younger generation. However, because of the attractive rate of return, I have been pleasantly surprised that a majority of those customers that open the account are in fact senior citizens. Some of those customers did not use their debit cards at all, but are doing so now, which brings in income for us. We also save money by not having to mail the statements. These same customers absolutely love consistently receiving their statement on the first day of each month, via the internet.
I have also learned that these customers are very proud of the fact they have learned to ?do banking? electronically. Many of them have now switched many of their monthly bills to auto transfers and/or bill-pay. It?s a win-win for the customer and for Greer State Bank. What this has proven to us is that senior citizens demand good service and innovative products, which should include electronic banking.
 
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March 31, 2011
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Jane Haskin, president, First Bethany Bank, $163.7 million-assets, Bethany, Okla. said:

We are seeing an increase in the number of seniors who are using the internet for their banking services, and are stressing to them the safety aspect of receiving their statements via email, as opposed to having their bank statement sitting in their mailbox for possible theft.
Many of our seniors who are physically unable to shop, enjoy the ease of shopping on the internet. In an effort to protect both the customer and the bank, we have hosted a fraud seminar in which we provide an expert speaker to inform the customers how to protect themselves when using the internet. Topics include how to know if a website is secure when shopping and how to make sure wireless connections are locked from outsiders so fraudsters can?t take over their computer and retrieve their bank information.
Since this is new technology to them, they appreciate our efforts to protect them. They hear so much in the media about identity theft they aren?t sure what is safe and what isn?t. We also try to give them a short demonstration on how internet banking works when they sign up for the product.
 
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March 31, 2011
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Richard Lee, president and CEO, Citizens Bank of Florida, $228.8 million-assets, Oviedo, Fla. said:

Definitely seeing some interest here. As a matter of fact I?ve scheduled a meeting this week with a longtime customer, late 70s, who recently lost her husband. We?ll be sitting behind her computer in her house going over how to use money management software to keep track of her expenses. We?ll also show her how she can use online banking. She?s excited about the opportunity and eager to learn. We haven?t really developed any broad plans to address this issue, but should probably consider doing so.
 
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March 31, 2011
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Clark Schultz said:

There is no question senior citizens are more wary of online and mobile banking than younger generations.

However, they can be engaged to sign up. A survey conducted by http://greenbankreport.com showed that senior citizens are more likely to sign up for online or mobile banking from brick-and-mortar banks in their local area, rather than online banks without a local presence.
 
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April 12, 2011
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