Difficulties accessing credit for seniors

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The elderly represent the segment of the population most negatively affected by digital developments over the past ten years. While they already face restrictions on access to credit from banking organizations, they also have to fight against a digital exclusion that blocks their access to new online credit solutions.


Seniors, a population with little digitalization


The level of digital equipment decreases as one advances in the age curve. People over 70 are only equipped with a smartphone at 31% while those aged 60-69 are 54% equipped with it. The same decrease can be observed with the level of internet use: 53% of those over 70 have access to the Internet when 81% of those aged 60-69 are connected. Obviously, this low level of use is reflected in the use of the Internet to carry out administrative procedures: only 30% of those over 70 are concerned.

Seniors report feeling less competent to use digital equipment, although this trend has slowed in the past four years. The difference between those aged under 75 and those aged over 75 with regard to carrying out online banking procedures is significant: 31% connect to their bank’s website, for the former, compared to 55% for the latter. Older people tend to prefer human contact and use other channels to carry out their procedures (telephone or appointment at an agency).


Difficult access to credit

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It is difficult for people over 70 to obtain credit, or at least to obtain credit at moderate cost, as borrower insurance is much more expensive beyond a certain age to compensate for the increased risk. death or health problem that could affect the repayment of the credit. In theory, people over 70 are the least demanding of credit, as property or equipment investments have often already been made.

However, new expenses have appeared: the obligation to carry out new development work or upgrading to housing standards, for example, which concerns 11% of those over 75 years of age. Seniors also spend more money on their health and health insurance costs (8% of spending against 4.5% for other age groups). And to this is added the drop in pensions which not all seniors have been able to anticipate at the right time and which lowers their purchasing power. It therefore seems entirely justified that seniors take out loans, just like younger ones. But their access to credit is very often restricted, due to this low use of digital tools.

Indeed, the use of digital has several advantages: to facilitate the comparison of offers between the various banking and insurance organizations, to obtain more attractive rates thanks to certain online banks whose rates are generally lower than those of traditional banks, to ensure follow-up of their bank accounts directly and at any time.

Seniors are therefore much more dependent on conventional organizations and less aware of online alternatives that would allow them to borrow at less prohibitive rates and manage their budget more effectively.