Mumbai: Survey Reveals Over Half Of Senior Citizens Avoid Online Banking Due To Fear, Digital Illiteracy

A survey conducted by the Consumer Guidance Society of India (CGSI) has revealed that more than half of senior citizens do not use online banking facilities, citing lack of guidance, fear of fraud, and poor digital literacy as key barriers.

The Consumer Awareness Survey, conducted in Mumbai with 819 participants in collaboration with NCRD’s Sterling College of Arts, Commerce & Science and Kohinoor Management School, highlighted that 53% of senior citizens avoid digital banking altogether. Of those who use it, 62% rely on it primarily for money transfers, while 29% only check account balances.

Usage Patterns

The study found that 71% of respondents had received no help from banks in using apps or online platforms, while 32% admitted they simply did not know how to use digital banking. Fear of fraud remains high, with 13% having experienced online scams — though only 55% of these victims reported the matter to cyber police, says the report. 

Challenges Faced

Common difficulties included forgetting PINs and passwords (28%), poor eyesight (24%), and weak internet connectivity (17%). Encouragingly, 62% of respondents said they were willing to attend workshops if banks organised them.

Fear of Fraud

During its press conference, CGSI also addressed the issue of consumer grievance redressal in cases of digital fraud. “In the last three years, 47 consumers approached CGSI after losing money to online fraud. On CGSI’s advice, they lodged complaints with their banks within 24 hours of the incident, leading to 43 consumers recovering their entire lost amount. CGSI emphasised that quick reporting within a period of 24 hours is crucial to increasing the chances of recovery,”said Dr M S Kamath, secretary of CGSI. 

Bank Support Lacking

Following the survey findings, CGSI urged banks to build trust with stronger fraud detection systems, simplify online KYC processes, and roll out user-friendly, multilingual apps with biometric logins and voice-assisted technology. The report also recommended exclusive provisions for senior citizens, such as priority services at branches and better-trained staff.

CGSI said the initiative not only raised awareness among consumers but also gave students valuable exposure to real-world social challenges. Certificates of appreciation were awarded to participating students.

Bridging the Digital Divide

The survey, according to CGSI, suggests an urgent need for banks to bridge the digital divide and ensure senior citizens are not left behind in the transition to cashless systems.