More support needed to help older people use online banking, Age Scotland warn

Recent issues with online banking have raised concerns

Earlier this month Lloyds Banking Group apologised to customers for a ‘technical issue’ with its app and online banking which led to thousands of customers reporting problems accessing their accounts.

Customers affected were unable to launch their app or access online banking and could not make digital payments, such as paying bills.

The banking group said its digital services were back up and running following the outage, which came a few months after nearly half a million people were impacted by an IT glitch.

That ‘software defect’ meant thousands of users saw other people’s transactions or had their data shared. The bank has apologised to customers affected by the issues, and insisted that there was no security risk to users of the app.

But Age Scotland has warned that with more people being pushed into using online banking as their local branches close, there is a greater need for banks to ensure they are properly supported.

“Hundreds of thousands of older Scots aren't online and are unable to bank digitally, and as three quarters of bank branches have closed in Scotland over the last decade, their ability to stay on top of their finances is really challenging,” Age Scotland chief executive Katherine Crawford said.

“The considerable demand from communities across the country for replacement banking hubs demonstrates this need.

“As banks drive customers to their apps as the primary way to manage their account, large numbers of people who aren't comfortable navigating the internet or with their digital device are at risk unless they can access much more support to be safe online.

“Our research shows that around two-thirds of older people who have been scammed were caught out by people trying to access their bank details and steal money. Only 41% of over 50s say they regularly update their device's antivirus software which could leave many exposed.

“Banks should look at offering their customers who are uncomfortable with or new to digital banking with in-person or direct support to familiarise themselves with their apps and website platforms.

“Using sandbox versions with dummy data could help people get to grips with the technology without risking their own money or data, building their confidence and security.

“With the high risk of cyber crime we are all facing, banks would be well placed to offer their customers access to free virus protection products with their accounts. They are investing huge sums of money in trying to defend their systems from cyber-attacks, so ensuring their customers’ devices are also well protected could improve user confidence and the wider adoption of digital banking.”

A spokesperson for Lloyds said: “We are sorry for the inconvenience caused.

“On 12 March, some customers using our app may have briefly seen transactions that were not their own following an IT change. The issue was quickly identified and resolved, and we’ve contacted customers whose transactions may have been visible for that short time.”

Lloyds said they support customers “in line with our responsibilities under the FCA’s rules” and insisted the recent problems had not left any customers facing a financial loss and that there had been no increase in fraud against customers who experienced this issue.