How to support your parents to transition to digital banking

As digital technology continues to develop and more of our everyday lives moves online, it’s understandable that some older Australians feel like they’re being left behind. Digital change can not only be overwhelming and confusing, but it can be scary too.

These same feelings are often associated with digital banking and a “cashless society”. Whether it’s feelings of distrust towards the digital world, a lack of understanding, or the threat of online crime, it can feel like a lot to deal with if you’re not comfortable online.

Hesitancy towards digital banking can mean a less convenient banking experience, as branches and phone lines aren’t always open. Banking online means having 24/7 access to accounts (from the palm of your hand), and thanks to ever developing technology, it continues to be a safe and secure way to bank.

So, how can you help the people in your life feel more confident to bank online? And where do you start if you’re feeling apprehensive about teaching a loved one?

First steps

Have a chat

First up, just have an open conversation. Before starting the transition to digital banking it’s important to understand your loved one’s current knowledge of technology, their banking preferences, and their willingness to give it a go.

Conversations are a two-way street. Try sharing your experience with banking, the things you like, any quirks you’ve experienced, and don’t forget to ask questions! You might even come away with some tried and tested financial tips.

To understand their appetitive for digital banking you could ask:

• If they prefer using a smart phone or computer – and how confident they are with it.
• What makes them hesitant towards digital banking.
• Whether they are open to learning new ways to bank.

Assess their financial needs

It’s all in the planning, so getting to know their current banking habits can help you find areas where digital banking could fit into their routine. Many older Australians choose to bank by phone or by visiting their local branch. They may bank with several financial institutions, and it’s likely that they use physical cash more frequently than you do to pay for things. Understanding these things can help work out what can be transitioned.

It's also worth finding out what aspects of their finances are most important to them. Is it bill payments, account access, or transaction history oversight? Whatever it is, knowing this will help you decide on a way forward.

Gain their consent

This is vital before you go any further. It’s important that your loved one fully understands and agrees with the transition to digital banking. If they aren’t completely on-board, then stop and reassess.

Elder abuse is a very real problem and is sadly usually carried out by family members or care givers. As a result, banks have processes in place to help protect vulnerable customers.

If they are on-board, great! They’ll need to speak with the bank to provide authority to operate on their behalf, if they haven’t already – that’s another reason why it’s important that they fully understand the transition.

Next steps

Now that your parent has agreed to transition to digital banking, it’s time to teach them how to successfully bank online.

• Contact their bank. To access digital banking services, it’s likely that your parent will need to register for it by speaking to their bank. You will need authority to deal with the bank on their behalf, so if you don’t have it, the bank will only speak with them.
• Start with basic tasks. Focus on activities like checking their account balances or setting up online bill payments. Depending on their current technology use, they may find that using their bank’s mobile app is easier than internet banking – and vice versa.
• Be patient and supportive. Go slowly and offer encouragement along the way. Be there to lend a hand as they navigate the new system, and repeat steps or processes multiple times to help build confidence and knowledge.
• Emphasise the benefits. Highlight how online banking can save time and effort compared to the traditional banking methods they’re probably used to. Not standing in line at the bank or post office to pay a bill is just one example. 

Future steps

Your job isn’t done yet. When your loved one is successfully banking online, it’s important they know that they can ask you questions, and that you’ll continue to help them learn. After all, forgotten passwords and technical issues happen to the best of us, so someone who is calm and patient to turn to for assistance is key.

Once their confidence has grown, it’s a good idea to check-in and adjust their online banking needs after a few months. As their comfort level and skills grow, you can help them uncover more features of online banking and build their confidence further.

Consider introducing more processes or tools – but only if it will benefit your parent and their finances. For example, mymo by P&N Bank could be a valuable tool to use if your loved one has accounts with more than one bank. The clever app links up all bank accounts, so it’s possible to see all balances and transactions in the one place.