Digital inclusion: walking the tightrope

Remember when everyone said digital communication and online self-service was the future? Well, it is - but perhaps not for everyone equally. Here's what we're seeing on the ground: while over 50s are enthusiastic internet and mobile banking users, many customers aged 70+ may prefer getting letters in the post. Yes, actual physical letters!

And even though around a quarter of 18-34 year olds say they never answer the phone, for some older customers, a good old-fashioned landline call during sensible hours works best. Proviso: don't expect them to hang around on the phone – older people don’t like waiting in call queues any more than anyone else, and they hate being passed from pillar to post!

But here's where it gets interesting – and challenging – there's a huge variation in digital capability among older customers. While one customer might struggle with basic email, another could be hosting Zoom calls with family, shopping online and managing all their finances digitally. Making very broad assumptions based on stereotypes can lead to poor engagement levels and damaged customer relationships. You’ll need the data to treat people as individuals and understand what each customer needs from you – and the technological capability to carry it through.

Addressing the digital skills gap

Let's talk about the elephant in the room – the digital divide. In the recent briefing 'Facts and figures about digital inclusion and older people', Age UK identified that

49% of people aged 75 and over and 29% aged 65 to 74 cannot complete all eight tasks required to set someone up for success online.

The impact of AI on the digital divide remains to be seen - there is potential for AI to level the playing field, but equally it is fraught with regulatory pitfalls. Struggling to adopt or adapt to new digital communication methods isn't about older people being "behind the times" – it's about access to skills, financial status, comfort, accessibility, and sometimes, physical capability. So what can we do?

Think hybrid:

• Keep traditional channels open and working efficiently.
• Offer easy-to-use digital options, but don't force them.
• Create exceptionally user-friendly digital interfaces.
• Provide support for those wanting to make the digital leap.

Potential vulnerability among older customers

Here’s where your team's approach can make or break success. This isn't just about hitting collection targets; it's about understanding that the person on the other end of the line is statistically more likely to be:

• Dealing with cognitive decline.
• Managing multiple health issues.
• Living on a fixed income.
• Feeling vulnerable or anxious about their debt.
• Caring for a partner, or requiring care themselves.
• Adversely affected by ageism – the attitudes of individuals and of society in general.

Your best assets? Staff who understand these challenges and know how to respond with patience and empathy. Engaging with charities such as Age UK can inform your team about the particular challenges of growing old and how they might affect customers if they fall into arrears.

Making it work: practical steps to support older customers

Here's what's working for forward-thinking lenders:

1. Ultra-flexible payment plans.
Think about aligning with pension payment dates, accepting lower monthly amounts, and agreeing to suitable longer-term arrangements. Many older customers are on fixed, and often low incomes with zero wiggle room – working with this reality, rather than against it, often leads to better outcomes.

2. Build extra time into the process.
Some older customers may need longer to gather information or make decisions. This isn't necessarily about cognitive ability but rather about giving everyone enough time to feel confident in their choices. Consider extending standard response timeframes and breaking down complex information into manageable steps – something that is beneficial across the board.

3. Clear communication.
Avoiding stereotypical thinking about older people's abilities or preferences is vital. Improve inclusivity by removing barriers to participation so you're less likely to exclude anyone inadvertently. Simple adjustments can make a significant difference:

• Increase your standard font size by one or two points.
• Use high-contrast colours in written communications.
• Ensure adequate spacing between lines.
• Improve how you present complex financial information to make it more accessible.
• Avoid jargon and find alternatives for industry terms that may be unfamiliar.
• Consider offering callback services to avoid long hold times and schedule calls at times when background office noise is lower for better clarity.

Whatever channel you're using, keep it clear, keep it simple, and always confirm understanding. Small changes to your standard processes can deliver significant improvement.

4. Train staff on respectful empowerment.
Focus your team on enabling older customers to maintain their independence and dignity. Avoid patronising language, speak directly to the customer (not their relatives unless authorised, such as with Power of Attorney), and provide clear options instead of assuming what's best for them.

Dignity in practice: managing older customers in debt

Older people have never been a homogenous group – and this is the case now more than ever. Collections processes must be able to treat each customer as the individual they are. We're seeing more tech-savvy retirees, more complex debt structures, and evolving pension scenarios. The key to success? Stay flexible, keep learning, and never forget the human element.

Managing older customer debt means finding sustainable solutions that work for some of our most vulnerable customers. Get it right, and you're not just meeting regulatory requirements like Consumer Duty; you're building trust, maintaining dignity, doing the right thing and often achieving better collection outcomes. 

If you'd like to discuss your organisation's approach to supporting older customers, feel free to reach out to our expert team using the link below.