Closing the generation gap, one of the challenges for financial institutions

In Colombia and the world, digital transformation has generated changes in different economic and productive sectors, including the financial system. Thanks to technological advances, it was possible to implement electronic and digital processes for the development of new channels and virtual banking. 

Over time, the use of digital channels for financial and banking services has increased, mainly among the younger generations, who prefer other means than traditional ones, such as mobile devices, to manage their finances. 

Despite the growing increase in the number of users, who resort to new channels and virtual banking to carry out all kinds of transactions, the financial and banking sector has not yet been able to attract an important segment of consumers: the elderly. 

According to the article "Latin America's elderly in the digital era: overcoming the digital divide", by the Economic Commission for Latin America and the Caribbean (ECLAC), there is not only a digital divide between countries, but also a generation gap in the use of technologies for different purposes. 

Thus, according to ECLAC, despite the fact that Internet use has increased in the region, its use among people over 60 years of age continues to be low, compared to the population groups aged 15 to 29 years and 30 to 59 years. Hence, most older adults have not become familiar with the idea of handling financial and banking matters through the new channels. 

Some of the factors that have had an impact on the generational digital divide have been the lack of knowledge and the feeling of distrust and insecurity in technological tools, ECLAC mentioned. 

How to achieve the inclusion of older adults in digital channels?

The great challenge for financial institutions in relation to the incorporation of the elderly population lies in generating knowledge, achieving a sense of trust and achieving a perception of security on the part of customers. In this sense, ECLAC recommends encouraging a digital culture through pedagogical tools, such as interactive guides. 

In this regard, Erick Rincón, executive president of Colombia Fintech, stated that technological solutions for the financial and banking sector entail a model that aims to be more user-friendly and available, making it possible for generations to use them easily. 

For ECLAC, financial education is necessary so that the older population is aware of the products offered by virtual banking and thus generate confidence in digital channels. 

Another aspect is the incorporation of digital channels that are not vulnerable to cyber attacks. Therefore, the financial and banking sector must invest in technologies aimed at cybersecurity such as voice biometrics, facial biometrics, natural language processing, among others.  

In short, despite the progress made in integrating all consumers into the new channels of the financial and banking sector, there are still barriers and challenges to overcome. However, fintech represents an opportunity to create more understandable and user-friendly tools for seniors.