Elderly Avoid Branches... Digital Financial Transactions Soar Among Those Aged 60 and Over

Internet and Mobile Banking Transfer Amounts by Age Group

원본보기 아이콘

[Asia Economy Reporter Song Seungseop]Lee Deokjin (70), who lives in Muju-gun, Jeonbuk, recently downloaded a bank application (app) with the help of his visiting grandchild. It took him 30 minutes on foot to reach the nearest bank, causing significant inconvenience in his financial life. Although he was initially intimidated by using the app for the first time, he experienced his first money transfer by applying the 'large font mode' and 'slow guidance' features. Lee said, "Once I get a little used to it, I don't think I'll need to go to the bank," adding, "I plan to check the allowance my son sends me through the app."

The number of elderly people using digital finance without visiting branches is rapidly increasing. This is due to the acceleration of non-face-to-face finance leading to branch closures, combined with financial companies revamping their apps for senior customers.

According to the office of Assemblyman Yoon Doohyun on the 5th, the amount of remittances transferred by internet and mobile banking by seniors aged 60 and over last year reached 383.9861 trillion won. This is a sharp increase of 110.0458 trillion won (40.1%) compared to 273.9402 trillion won the previous year. The amount has increased by 179.9122 trillion won (88.1%) over the past four years. Especially, as of May last year, it recorded 214.196 trillion won, so it is estimated to exceed 400 trillion won this year, marking an all-time high.

The number of transfers by users aged 60 and over also increased by 30.2% to 189.03 million last year compared to the previous year. This is the fastest growth rate among all generations. Those aged 50 and over also grew by 19.3% to nearly 631.27 million transactions. In contrast, the digital usage of the 20s and 30s age groups increased by only 16.9% and 8.1%, respectively. The 10-19 age group actually decreased by 1.4%.

The number of seniors visiting branches decreased for the first time last year. The number of offline branch transactions by customers aged 60 and over was about 9.43 million last year, slightly down from 9.53 million the previous year. Originally, the use of branch counters by the elderly had been increasing annually since 7.8 million in 2017.

More seniors have also started subscribing to deposit products not sold offline. It appears that seniors are actively participating in digital finance, not only for simple account inquiries or transfers but also for purchasing financial products. The number of online-only demand deposit accounts opened by seniors in their 60s last year increased by 67,040 (41.4%) to 207,048 accounts compared to 146,344 the previous year. By May this year, it had already reached 217,658 accounts, surpassing last year's total. While the number and amount of savings deposits decreased among those in their 20s and 30s, they increased among those in their 50s and 60s and older.

However, seniors still tend to avoid executing loans through digital devices. Over one year, the loan amounts received through online-only products by those in their 20s to 50s increased by about 60-90%. But for the elderly, it increased by about 12.0%, from 1.864 trillion won to 2.088 trillion won.

Financial authorities and commercial banks are introducing various policies to make apps more convenient for senior customers. Woori Bank, which revamped its app screen to be as simple as possible for senior customers starting this month, is a representative example. Meanwhile, Jeong Eunbo, Governor of the Financial Supervisory Service, recently met with financial holding company chairpersons to urge the protection of financial consumers, including senior customers.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.