𝗪𝗵𝘆 𝗲𝘃𝗲𝗿𝘆 𝘁𝗿𝗶𝗽 𝘁𝗼 𝗠𝗲𝘅𝗶𝗰𝗼 𝗶𝗻𝗰𝗹𝘂𝗱𝗲𝘀 𝗮 𝘃𝗶𝘀𝗶𝘁 𝘁𝗼 𝘁𝗵𝗲 𝗯𝗮𝗻𝗸 𝘄𝗶𝘁𝗵 𝗺𝘆 𝗺𝘂𝗺

I love visiting my mum in Mexico. However, one part of these trips that I don't enjoy is becoming her 'banking companion'. Every trip, I invariably go to the bank with her, painfully observing her queuing, and requesting a task that could be performed through the banking app 😨 Trying to convince her to use the app? Believe me, I have tried!

My mum isn't alone in this struggle. Two-thirds of unbanked adults around the world have mobile phones, highlighting a mismatch between innovation and impact. 

Several demographic factors influence inclusion in digital financial products, such as socioeconomic status, gender, and education. For example, women in Latin America have lower ownership of debit cards because men traditionally managed finances. Additionally, older people face unique financial and technological challenges compared to younger adults.

Talking to my mum and gathering more external evidence, I identified three main issues preventing her from using the app and potential solutions:

🛑 “I’m afraid of clicking the wrong button and losing money.”

This statement highlights two biases: loss aversion and fear of making mistakes. Simplifying the interface with clear, fail-safe options and providing reassuring prompts can help. Reducing the perceived risk and making it clear that errors can be easily corrected, could increase her confidence in using the app.

🛑 “I can’t find the option to see my balance.”

The issues here are complexity bias and cognitive overload. My mum's struggle to find features like checking her balance suggests the app's design is not intuitive. A user-friendly interface with easy-to-navigate features could help. By analysing which features customers use most and find easy or difficult, we can personalize the app to better meet their needs.

🛑 “I can just go to the bank and do it in person.”

This reflects status quo bias and trust issues. My mum's preference for in-person banking over digital options shows a resistance to change and a lack of trust in the app. Overcoming this bias is challenging, but building trust through educational campaigns and demonstrating the app's safety and convenience could encourage her to at least give it a try. 

By making the interface more intuitive and user-friendly, banks can help older adults and those less familiar with technology feel comfortable managing their finances digitally.

Additionally, happy customers can drive public support for innovative initiatives. For example, when customers understand and request the benefits of open banking, it creates a strong incentive for policymakers and financial institutions to implement and expand these services. This public support can accelerate the adoption of more inclusive and innovative financial services.

Wish me luck and safe travels to the bank! 😩