ADVERTISEMENT
Cashless transactions agony for the elderly
Published on: Sunday, August 18, 2024
Text Size:
In our rush towards a cashless society, seniors and other vulnerable groups should not be left behind.
The Deputy Digital Minister also indicated that cashless transactions increased from RM7.2bil in 2021 to RM9.5bil in 2022.
Have cashless transactions grown too fast? What are the consequences of this rapid growth on society, especially for the vulnerable members of society?
It cannot be denied that cashless transaction brings many benefits including efficiency and speed, cost effectiveness, enhanced security, global accessibility, financial inclusion and data insights and analytics.
Yet, what is the impact on the vulnerable members of society?
The recent scam by fake Samaritans in Johor Baru is one example of the impact of digital finance on seniors.
Many senior citizens lack the confidence and skill to use the ATM machine for withdrawals and transfers. Thus when they fumble or struggle at the ATM machine, the so-called “volunteers” would volunteer to help to undertake their transactions.
Trusting these “volunteers”, the seniors hand over their card and pin number, resulting in the fraudsters withdrawing the cash from seniors’ accounts and disappearing.
This could have been avoided if the banks concerned identified and sought to assist senior citizens or other vulnerable groups. Or better still, allowed counter service to vulnerable groups to undertake cash deposits, withdrawals or cash transactions.
What seniors and other vulnerable groups are asking for is the return of their banking pass books, access to cash withdrawals at cash counters and the ability to make cash transactions at the counter.
Or, at the very least, assistance and support by bank staff to enable them to navigate the frequently complex process of ATM use and other digital transactions.
Unfortunately, many so-called “progressive” policy makers consider moves to help seniors as going backwards. They argue that we must move forward, not backward. For them, the way forward is the digitalisation of finances and cashless transactions.
If seniors or other vulnerable groups suffer because of their callous and insensitive attitudes, it is their problem. We must move forward with digitalisation.
Further, at the retail level, there are some outlets which refuse cash, and payments can only be made through cashless transactions.
If seniors or other vulnerable groups do not know how to pay through cashless transactions, and ask to pay in cash, they are refused service at those outlets.
It is noteworthy that even in China, which is the paragon for cashless transactions, efforts are moving to broadly crack down on the rejection of cash payments. In May, China’s Central Bank fined seven businesses, including a local KFC franchise, for rejecting cash payments. The businesses were fined between RM1,900 and RM35,000.
These fines were part of the Chinese authorities’ efforts to ensure that physical currency remains accepted in the country.
The authorities expressed concern about the implications of cash free economy on the elderly Chinese who are less digitally proficient than the general population.
It is illegal in China to reject cash payments, no matter what the preferences of the merchants are.
Can we show the same concern for Malaysian seniors?
The number of outlets in Malaysia that insist “we are a cashless outlet – we only accept cards and e-wallet payments” is growing.
Sweden, which is one of the advanced countries using cashless transactions, is questioning if they have indeed gone too far and too fast.
The rapid digitalisation in finance has also resulted in the rapid growth of scams and financial frauds.
The Central Bank has admitted that one of the key causes has been that digitalisation may have gone too far. For example, it reported that welfare payment fraud increased from 9,000 cases in 2014 to 23,000 in 2023.
The Swedish Bankers Associa-tion would suggest that it is indeed a challenge to find the right balance between accessibility and security.
Khazanah Research Institute has suggested that low levels of digital and financial literacy could hinder the uptake of digital banking.
Their research reports that seniors unfamiliar with technology struggle to find appropriate education, guidance and support. Thus they are more vulnerable to financial fraud and scams.
According to another think tank, the Social and Economic Research Initiative, consumers in semi-urban and rural areas may be disadvantaged due to poor Internet coverage as well as lack of access to appropriate devices.
It questions whether enough is being done to provide Malaysians with digital financial education.
Most importantly, the think tank also questions that if cashless transaction becomes a basic social and public function, are we meeting the needs of the most vulnerable members of society.
Are we providing them with the knowledge, skills and tools to understand how really to use these services while also not falling prey to scams?
In our rush to build a financial system rooted in cashless transactions, Fomca calls on the government to give serious consideration and care for the most vulnerable members of society. In our rush towards a cashless society, seniors and other vulnerable groups should not be left behind.
Dr Paul Selva Raj
Deputy President, Fomca
The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express.
If you have something to share, write to us at: [email protected]
ADVERTISEMENT
