Banks have been permanently shutting down their branches as they embrace digitisation at a time the country is also struggling to get cash.This has been the norm with the whole financial services sector and now the emergence of covid has also brought its own challenges that has pushed a greater need to embrace technology.This simply means the more the distance pensioners have to travel to access cash and other services.
Dorcas Chigodho
It’s no secret that the pension industry is facing some glaring challenges related to fund sustainability and benefit adequacy. At the same time, however, the expectations of active and retired members for more access to retirement data and planning information are driving significant changes in the way services are provided.
In the past decade, developments in computer and information technologies have occurred at an unprecedented rate and technology has become an integral component of work, education, communication and entertainment.
Technology is also increasingly used within the health care arena for service delivery, in-home monitoring, interactive communication, transfer of health information and peer support. Experts who spoke to Insurance 24 this week emphasised the need for simplification of technology for the benefit of the elderly who have been keen to embrace technology.
On the other hand ,a research into the impact of technology by the University of Miami Miller School of medicine notes that two major demographic trends underscore the importance of considering adaptation to technology by older adults: the aging of the population and rapid dissemination of technological innovations.
As telephones, television, home security systems and other communication devices are becoming more integrated with computer network resources providing faster and more powerful interactive
services the report notes that in order to function independently and successfully interact with the environment, people of all ages need to interact with some form of technology.
“Not having access to and being able to use technology will increasingly put older adults at a disadvantage in terms of their ability to live and function independently and successfully negotiate
the built environment. Furthermore, the full benefits of technology may not be realized by older populations. Technology holds the promise of enhancing the quality of life and independence of older people by augmenting their ability to perform a variety of tasks and access information and services. However, unless we have an understanding of why older adults have difficulty adapting to new technologies and older adults are perceived as active users of technology by system designers successful use of technology will continue to be a challenge for future generations of older people.” Noted the report.
Given that technology is not static people will continually confront the need to learn new systems or activities at multiple points during their lives makes the topic of aging and technology continue to be an important issue in the upcoming decades.
Pensions expert, Peter Shoniwa told Insurance 24 that while digitisation has made life easier or pensioners as they no longer
have to physically go to banks, simplification of technology was key. “Honestly pensioners are quite keen to be included in the digitization process. The key, however is on simplicity of the technology .
Pensioners are likely to have operated in the old environment where paper was accepted as the only evidence of a communication /contract
/transaction etc. However pensioners have been very quick to embrace digitization as evidenced by the uptake of platforms like whatsapp, ecocash,telecash,onemoney etc for transacting due to the simplicityand convenience.” He said.
Shoniwa added that in the past pensioners were also required to prove continued existence by completing a Certificate of Pension/Existence form before a commissioner of oaths on an annual
basis and then submitting the signed form to the office of the pension administrator.
Failure to submit the form would result in the suspension of the pension payments. Several administrators have now adopted the Biometric system which does not require form filling and all the pensioner does is to present himself or herself at the nearest pension office and through the use of fingerprint they are identified and record is updated accordingly.
That the pensioners no longer travel to the banks means that they do not need to find fuel, at great expense, to travel. However he said it was also worth noting that as banks close many of
their branches the distance to be travelled to the nearest bank can be significantly increased more so for pensioners residing in the communal areas.
“Current centralization is highly inconvenient to pensioners as they have to travel long distances, at great expense and risk to themselves to have their issues resolved. Digitisation brings the service closer to the people as physical visits to pension offices are not necessary.
Changes such as postal addresses, bank account details, beneficiaries etc may be made on line subject to controls to minimize fraud,” he
said
Shoniwa said for the sake of expediency computer systems for both pension offices and banks could ideally be integrated so that staff at
banks are also be able to deal with matters for pensioners.
X-pert solutions MANAGING CONSULTANT Joyce Benza concurred that technology could be made simpler for pensioners However she said given the 2018 of teledensity figures standing at 89%
, the country is probably now talking of less than 10% of the population which might translate to about less than 5% of pensioners
without digital access.
“ Pensioners depending on their levels of digital literacy are definitely ready for digitization. There is however the very old ones and those who do not have access to mobile phones and here we are
talking of a low %. They can get their family members to access their online alerts and do transfers for them. Technology could be made
simpler for pensioners.” she said
On centralisation of services for pensioners, she said there could be areas where there is limited access to mobile networks thus if the nearest Growth point has access then easier transaction could be facilitated before the pensioner goes back home.
Despite challenges that may come with digitisation for pensioners, Benza remained optimistic that in the fullness of time digitisation
will reach out to remote centers and nearest schools. This then would facilitate easier access for services to pensioners.
