Why ‘digital-first’ should not mean ‘digital-only’
THE finance industry has experienced a boom when it comes to digitalisation.
We can safely say we are in a digital-first, mobile-friendly nation, as people are comfortable being increasingly cashless and many are performing banking transactions online.
The Covid-19 pandemic has accelerated digital capabilities across a number of industries as society needed to adapt to a socially distant new normal. At the same time, a strong governmental push towards digital has also paved the way for transformation efforts.
As at last year, 99 per cent of all transactions between citizens and government could be completed digitally from end to end, noted Minister for Communications and Information Josephine Teo at a developer conference in November 2022.
The recently released inaugural Singapore Digital Society Report by the Infocomm Media Development Authority in November 2023 also found that seniors are becoming comfortable with online transactions, and that more of them have become smartphone owners in recent years. That number jumped from 74 per cent in 2017 to 89 per cent in 2022.
As more people gain access to digital capabilities, financial institutions such as ours certainly see the benefits of digitalisation, and constantly innovate to answer the digital call.
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Today, one can seamlessly open an account, buy wealth products and apply for loans digitally, often getting approvals within minutes or a day, and without ever needing to visit a branch.
Practically all our customers’ bank accounts were opened online last year. One can also receive Central Provident Fund payouts at OCBC ATMs despite not having an account with us.
All this progress has been rewarding to much of the population, empowering a large segment with tools and capabilities that provide convenience, quick access and more. Many say that they have a better overview of their finances and can plan for their future better.
But I am ever cognisant of the ageing segment of the population that needs assistance when it comes to being comfortable in an increasingly digital world. For them, banks must also innovate to provide them with appropriate tools so they are not left behind, and so that our digital world is as inclusive as possible.
Helping seniors with “digital-first”
According to the annual Population In Brief report, Singapore citizens aged 65 and above make up 19 per cent of our demographic. That figure is set to rise – by 2030, around one in four citizens (24.1 per cent) will be aged 65 and above. This is compared with 11.7 per cent in 2013.
This segment has different needs. These citizens have physical challenges that come with ageing and move at a different pace than their younger peers. Oftentimes, they are not so comfortable with digital tools, no matter how “on” they wish to be.
Take my dad, for example. He is in his 70s and is often keen to demonstrate his digital know-how, yet struggles with basic banking app functions. In some instances, such as money transfers above a certain amount, the “solution” is me assisting and guiding him (a scenario I am sure many are familiar with).
I have to repeatedly explain certain limitations of this transaction he’s trying to make – why he needs to wait 12 hours after he increases his transaction limit – and why it is put in place (hello, scams and cooling period?) Even former bankers I know well, now in their 70s and up, may require just a touch of such assistance.
Because of such instances, I understand that some guidance is necessary to help them transition to a “digital-first” world. The government has repeatedly said that it has a “digital first” but not “digital only” strategy, where essential services remain accessible through non-digital means for those unable to use digital channels.
I agree with this approach. My experiences have shown that no matter how digitally savvy a person might be, “digital-first” does not always mean that they can “self-help” all the time.
What “digitally assisted” looks like
The answer to being inclusive, particularly for the seniors among us, is to provide that human touch. One in every three customers who visit an OCBC branch for over-the-counter teller transactions today is aged 60 and above. This is why we’re committed to keeping branches (the channel of choice for some older folks), alive and well. While many of OCBC’s branches increasingly have digital capabilities and proudly showcase the digital experience, there is also live help through our digital ambassadors available.
The top two transactions for those aged 60 and up are cash withdrawals and deposits – basic banking services that could be reduced or replaced by digital payments. To further help them get used to the digital world, more “digitally assisted” services are available.
Imagine having enormous TV screens that mimic the bank’s digital app interface. Digital ambassadors teaching an older customer how to perform transactions digitally in real time at the branch. This will help them get comfortable with doing the same on their own mobile devices.
Speaking of devices, I envision the day we develop apps just for seniors. This could include just the basic digital banking functions that they commonly use – PayNow, funds transfers, and simple checking of bank account balances. These, coupled with larger fonts and appropriately spaced line breaks, would help seniors navigate their mobile banking apps much more easily.
Education and learning is multi-faceted, and education programmes can help an ageing population transition to digital.
Recognising this, OCBC began running its Digital Silvers education programme – a one-on-one training initiative that teaches customers 60 years old and above to bank and pay digitally.
The project takes place across all the bank’s branches and started last year.
I have volunteered for the initiative twice this year and found the experience illuminating.
While some questions are basic, such as how to check their bank balances on the app and how to safely log out from the app, there are more complex ones, such as how to redeem their fixed deposits digitally, and how to check for government payouts from their account transaction history.
I am encouraged by the fact that the senior attendees do come away with skills that allow them to better navigate digital banking apps. The programme’s curriculum will also be updated as participants’ capabilities grow.
My interactions with older folks through the programme have shown me that seniors learn at a different pace and have different needs. They are not quite ready for a digital-first world as we know it, and we must not forget them as we continue to innovate.
In 2022, two in three OCBC customers were active digital users. And in the first six months of 2023, around 97 per cent of all financial transactions were performed digitally. To maximise the benefits of digital banking, banks and government agencies can work collectively to bridge any gaps, ensuring that everyone can access and utilise digital services safely and effectively.
The future of finance may be digital, but it is possible to ensure that it is inclusive for all.
The writer is head of group digital business and transformation, global consumer financial services, OCBC
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