Impact of changes in the delivery of financial services

1. Impact of changes in the delivery of financial services Laura Tidbury, Financial Services Policy Advisor January 2010

2. Age Concern and Help the Aged • Age Concern and Help the Aged have joined to form one charity – we are the largest charity representing the needs of older people. • Local Footprint– There are 350 local Age Concerns in England and independent national Age Concerns in Scotland, Wales and Northern Ireland. • Financial Services Policy – We work to influence the industry, government and regulators to ensure that older people have access to the range and quality of financial services which meet their needs.

3. Barriers • Internet Banking - Access - Inexperience - Security Concerns - Passcodes/Identification numbers - Culture • Telephone Banking - Cost - Telephone Menus - Voice Activation - Passcodes/security questions - Culture

4. Some quotes • ‘”It’s remembering passwords and usually I get told something is wrong. When you are in the account it’s okay but it’s the getting in. I feel physically sick sometimes when I know I’ve got to do it’. Female, aged 75+

5. “I took her to her local branch to sort out [her overdraft] but we were told it was easier to do it by telephone as it could only be dealt with by head office anyway. She tried to do it but found the automated instructions too complicated.”

6. ‘I use the computer in the bank and it’s great, but when I started I made an awful lot of mess and at one point I said to the lady (in the bank who was helping me) where’s my money goneand she patted my arm and said oh bless you – I felt about this big’ Male aged <75

7. Further developments • Closure of local bank branches and Post Offices • Closure of the central cheque clearing system • Alternative options

8. Consumer detriment • Social Exclusion “Living alone it is the one place where human contact can be guaranteed” • Financial Abuse Implications“I can’t shop for myself, I give my carer my card and she gets it for me” • Increased Costs “Internet – there’s a twist on this with savings accounts. For those of us who are dinosaurs we can’t get as good an interest rate. They say it costs them because people use the branch, but the money sit’s in the bank all year” • Far Reaching Impact“This culminated in over 1.45 hours on the phone while I repeatedly ran through the banks automated menus for my mum”

9. Challenges • Inclusive Design“Be prepared to be flexible – one size does not fit all”“Have imagination when dealing with the elderly”“Understand that the needs of older people are not the norm” • Customer Engagement“Listen (really listen) to older people. Take time with their needs. Respect for older people is a must (you will be older yourself some day).” • Research Challenge